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We analyze the stability of financial investment networks, where financial institutions hold overlapping portfolios of assets. We consider the effect of portfolio diversification and heterogeneous investments using a random matrix dynamical…

Risk Management · Quantitative Finance 2025-02-03 Preben Forer , Barak Budnick , Pierpaolo Vivo , Sabrina Aufiero , Silvia Bartolucci , Fabio Caccioli

The presence of energy shells in metallic clusters and atomic nuclei leads to a peculiar relation between the number of particles N and the structure, and this leads to a strong correlation between the energy spectrum and N. An analysis of…

Mesoscale and Nanoscale Physics · Physics 2011-11-10 V. Z. Kresin , J. Friedel

A methodology is developed to identify, as units of study, each decrease in the value of a stock from a given maximum price level. A critical level in the amount of price declines is found to separate a segment operating under a random walk…

Statistical Finance · Quantitative Finance 2017-03-28 Leopoldo Sánchez-Cantú , Carlos Arturo Soto-Campos , Andriy Kryvko

Recent theoretical work on the role of microscopic chaos in the dynamics and relaxation of many-body quantum systems has made several experimentally confirmed predictions about the systems of interacting nuclear spins in solids, focusing,…

Statistical Mechanics · Physics 2015-05-27 Eric G. Sorte , Boris V. Fine , Brian Saam

This is a short letter summarizing the long paper cond-mat/0106047 in which we present a simple two-dimensional dynamical system reaching a singularity in finite time decorated by accelerating oscillations due to the interplay between…

Statistical Mechanics · Physics 2009-11-07 D. Sornette , K. Ide

We propose that large stock market crashes are analogous to critical points studied in statistical physics with log-periodic correction to scaling. We extend our previous renormalization group model of stock market prices prior to and after…

Condensed Matter · Physics 2015-06-25 Didier Sornette , Anders Johansen

We analyse tick-by-tick data representing major cryptocurrencies traded on some different cryptocurrency trading platforms. We focus on such quantities like the inter-transaction times, the number of transactions in time unit, the traded…

Statistical Finance · Quantitative Finance 2022-09-05 Jarosław Kwapień , Marcin Wątorek , Marija Bezbradica , Martin Crane , Tai Tan Mai , Stanisław Drożdż

Fat tails in financial time series and increase of stocks cross-correlations in high volatility periods are puzzling facts that ask for new paradigms. Both points are of key importance in fundamental research as well as in Risk Management…

Statistical Mechanics · Physics 2008-12-02 Marco Airoldi

The dynamics of prices in financial markets has been studied intensively both experimentally (data analysis) and theoretically (models). Nevertheless, a complete stochastic characterization of volatility is still lacking. What it is well…

Statistical Mechanics · Physics 2009-10-31 Michele Pasquini , Maurizio Serva

Complexity in materials often arises from competing interactions at the atomic length scale. One such example are the strongly correlated heavy-fermion materials where the competition between Kondo screening and antiferromagnetic ordering…

Strongly Correlated Electrons · Physics 2015-05-18 Jeremy Figgins , Dirk K. Morr

Recently the interest of researchers has shifted from the analysis of synchronous relationships of financial instruments to the analysis of more meaningful asynchronous relationships. Both of those analyses are concentrated only on…

Statistical Finance · Quantitative Finance 2014-06-18 Paweł Fiedor

With the daily and minutely data of the German DAX and Chinese indices, we investigate how the return-volatility correlation originates in financial dynamics. Based on a retarded volatility model, we may eliminate or generate the…

Statistical Finance · Quantitative Finance 2012-02-03 J. Shen , B. Zheng

We study the relationship between topological scales and dynamic time scales in complex networks. The analysis is based on the full dynamics towards synchronization of a system of coupled oscillators. In the synchronization process, modular…

Disordered Systems and Neural Networks · Physics 2009-11-11 Alex Arenas , Albert Diaz-Guilera , Conrad J. Perez-Vicente

The high-frequency cross-correlation existing between pairs of stocks traded in a financial market are investigated in a set of 100 stocks traded in US equity markets. A hierarchical organization of the investigated stocks is obtained by…

Statistical Mechanics · Physics 2008-12-02 Giovanni Bonanno , Fabrizio Lillo , Rosario N. Mantegna

Recurrence Plot (RP) and Recurrence Quantification Analysis (RQA) are signal numerical analysis methodologies able to work with non linear dynamical systems and non stationarity. Moreover they well evidence changes in the states of a…

Statistical Mechanics · Physics 2012-10-03 A. Fabretti , M. Ausloos

Cross-correlation analysis is a powerful tool for understanding the mutual dynamics of time series. This study introduces a new method for predicting the future state of synchronization of the dynamics of two financial time series. To this…

Statistical Finance · Quantitative Finance 2022-11-03 Mostafa Shabani , Martin Magris , George Tzagkarakis , Juho Kanniainen , Alexandros Iosifidis

We study how the phenomenon of contagion can take place in the network of the world's stock exchanges due to the behavioral trait "blindeness to small changes". On large scale individual, the delay in the collective response may…

General Finance · Quantitative Finance 2016-02-25 Lucia Bellenzier , Jørgen Vitting Andersen , Giulia Rotundo

The concept of structural invariance previously introduced by the authors is used to argue that the connection between random matrix theory and quantum systems with a chaotic classical counterpart is in fact largely exact in the…

chao-dyn · Physics 2008-02-03 F. Leyvraz , T. H. Seligman

This article is the written version of a talk delivered at the Bexbach Colloquium of Science 2000 and starts with an introduction into quantum chaos and its relationship to classical chaos. The Bohigas-Giannoni-Schmit conjecture is…

High Energy Physics - Lattice · Physics 2007-05-23 Elmar Bittner , Harald Markum , Rainer Pullirsch

We study the effect of a weak random additive noise in a linear chain of N locally-coupled logistic maps at the edge of chaos. Maps tend to synchronize for a strong enough coupling, but if a weak noise is added, very intermittent…

Statistical Mechanics · Physics 2015-06-05 Alessandro Pluchino , Andrea Rapisarda , Constantino Tsallis