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Emerging markets such as India provide investors with returns far greater than those in developed markets; taking the average returns from the period 1995 to 2014 the returns are 4.714% to 3.276% of the developed market. The majority of…

General Finance · Quantitative Finance 2022-07-28 Ganapathy G Gangadharan , N. Suresh

A microscopic model of financial markets is considered, consisting of many interacting agents (spins) with global coupling and discrete-time thermal bath dynamics, similar to random Ising systems. The interactions between agents change…

Statistical Mechanics · Physics 2012-08-27 Andrzej Krawiecki , Janusz A. Holyst , and Dirk Helbing

Financial correlations play a central role in financial theory and also in many practical applications. From theoretical point of view, the key interest is in a proper description of the structure and dynamics of correlations. From…

Statistical Mechanics · Physics 2009-11-10 Szilard Pafka , Imre Kondor

The integration and innovation of finance and technology have gradually transformed the financial system into a complex one. Analyses of the causesd of abnormal fluctuations in the financial market to extract early warning indicators…

Risk Management · Quantitative Finance 2024-03-20 Shige Peng , Shuzhen Yang , Wenqing Zhang

In financial markets, abnormal trading behaviors pose a serious challenge to market surveillance and risk management. What is worse, there is an increasing emergence of abnormal trading events that some experienced traders constitute a…

Trading and Market Microstructure · Quantitative Finance 2011-10-10 Junjie Wang , Shuigeng Zhou , Jihong Guan

Throughout history, many countries have repeatedly experienced large swings in asset prices, which are usually accompanied by large fluctuations in macroeconomic activity. One of the characteristics of the period before major economic…

Theoretical Economics · Economics 2024-08-12 Tomohiro Hirano

Standard methods and theories in finance can be ill-equipped to capture highly non-linear interactions in financial prediction problems based on large-scale datasets, with deep learning offering a way to gain insights into correlations in…

Computational Finance · Quantitative Finance 2020-04-22 Ben Moews , Gbenga Ibikunle

The properties of q-dependent cross-correlation matrices of stock market have been analyzed by using the random matrix theory and complex network. The correlation structures of the fluctuations at different magnitudes have unique…

Statistical Finance · Quantitative Finance 2018-03-14 Longfeng Zhao , Wei Li , Andrea Fenu , Boris Podobnik , Yougui Wang , H. Eugene Stanley

Financial correlation matrices measure the unsystematic correlations between stocks. Such information is important for risk management. The correlation matrices are known to be ``noise dressed''. We develop a new and alternative method to…

Statistical Mechanics · Physics 2009-11-07 Thomas Guhr , Bernd Kaelber

We develop a stochastic macro-financial model in continuous time by integrating two specifications of the Keen economic framework with a financial market driven by a jump-diffusion process. The economic block of the model combines monetary…

General Finance · Quantitative Finance 2026-03-10 Matheus R. Grasselli , Adrien Nguyen-Huu

The manipulation of LIBOR by a group of banks became one of the major blows to the remaining confidence in financial industry. Yet, despite an enormous amount of popular literature on the subject, rigorous time-series studies are few. In my…

Statistical Finance · Quantitative Finance 2020-04-07 Peter B. Lerner

The interaction of multiple bubbles is a complex physical problem. A simplified case of multiple bubbles is studied theoretically with a bubble located at the center of a circular bubble cluster. All bubbles in the cluster are equally…

Fluid Dynamics · Physics 2023-02-23 A-Man Zhang , Shi-Min Li , Pu Cui , Shuai Li , Yun-Long Liu

MHD Turbulence is a critical component of the current paradigms of star formation, particle transport, magnetic reconnection and evolution of the ISM. Progress on this difficult subject is made via numerical simulations and observational…

Astrophysics of Galaxies · Physics 2011-05-06 Blakesley Burkhart , Alex Lazarian

Statistical dynamics of financial systems is investigated, based on a model of a randomly coupled equation system driven by a stochastic Langevin force. Anticorrelations of price returns, and subdiffusion of prices is found from the model,…

Disordered Systems and Neural Networks · Physics 2008-12-02 Kestutis Staliunas

We present a self-consistent model for explosive financial bubbles, which combines a mean-reverting volatility process and a stochastic conditional return which reflects nonlinear positive feedbacks and continuous updates of the investors'…

Risk Management · Quantitative Finance 2014-08-26 L. Lin , Ren R. E , D. Sornette

Employing a recent technique which allows the representation of nonstationary data by means of a juxtaposition of locally stationary patches of different length, we introduce a comprehensive analysis of the key observables in a financial…

Statistical Finance · Quantitative Finance 2013-05-03 Sabrina Camargo , Silvio M. Duarte Queiros , Celia Anteneodo

This review discusses methods of testing for explosive bubbles in time series. A large number of recently developed testing methods under various assumptions about innovation of errors are covered. The review also considers the methods for…

Econometrics · Economics 2022-07-19 Anton Skrobotov

Multivariate spatio-temporal data refers to multiple measurements taken across space and time. For many analyses, spatial and time components can be separately studied: for example, to explore the temporal trend of one variable for a single…

Computation · Statistics 2026-02-24 H. Sherry Zhang , Dianne Cook , Ursula Laa , Nicolas Langrené , Patricia Menéndez

We present a synthesis of all the available empirical evidence in the light of recent theoretical developments for the existence of characteristic log-periodic signatures of growing bubbles in a variety of markets including 8 unrelated…

Condensed Matter · Physics 2007-05-23 Anders Johansen , Didier Sornette , Olivier Ledoit

The credit crisis roiling the world's financial markets will likely take years and entire careers to fully understand and analyze. A short empirical investigation of the current trends, however, demonstrates that the losses in certain…

Statistical Finance · Quantitative Finance 2015-05-13 Reginald D. Smith
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