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Correlation matrices are a standard tool in the analysis of the time evolution of complex systems in general and financial markets in particular. Yet most analysis assume stationarity of the underlying time series. This tends to be an…

Mathematical Physics · Physics 2013-09-11 Vinayak , Rudi Schäfer , Thomas H. Seligman

Long-range correlation in financial time series reflects the complex dynamics of the stock markets driven by algorithms and human decisions. Our analysis exploits ultra-high frequency order book data from NASDAQ Nordic over a period of…

Trading and Market Microstructure · Quantitative Finance 2017-11-10 Martin Magris , Jiyeong Kim , Esa Rasanen , Juho Kanniainen

Based on time-dependent variational principle (TDVP) techniques, we investigate the dynamical critical behavior of quantum three-state Potts chains with chiral interactions. Using Loschmidt echo, order parameter, and entanglement entropy as…

Statistical Mechanics · Physics 2023-12-27 Xue-Jia Yu

While a substantial literature on structural break change point analysis exists for univariate time series, research on large panel data models has not been as extensive. In this paper, a novel method for estimating panel models with…

Econometrics · Economics 2021-09-24 Oualid Bada , Alois Kneip , Dominik Liebl , Tim Mensinger , James Gualtieri , Robin C. Sickles

In this paper we employ methods from Statistical Mechanics to model temporal correlations in time series. We put forward a methodology based on the Maximum Entropy principle to generate ensembles of time series constrained to preserve part…

Statistical Mechanics · Physics 2020-07-15 Riccardo Marcaccioli , Giacomo Livan

The measured correlations of financial time series in subsequent epochs change considerably as a function of time. When studying the whole correlation matrices, quasi-stationary patterns, referred to as market states, are seen by applying…

Statistical Finance · Quantitative Finance 2020-11-03 Anton J. Heckens , Sebastian M. Krause , Thomas Guhr

In this paper, we use the generalized Hurst exponent approach to study the multi- scaling behavior of different financial time series. We show that this approach is robust and powerful in detecting different types of multiscaling. We…

Statistical Finance · Quantitative Finance 2012-05-25 Jozef Barunik , Tomaso Aste , Tiziana Di Matteo , Ruipeng Liu

Fluctuations in stock prices are influenced by a complex interplay of factors that go beyond mere historical data. These factors, themselves influenced by external forces, encompass inter-stock dynamics, broader economic factors, various…

Statistical Finance · Quantitative Finance 2026-02-12 Ambedkar Dukkipati , Kawin Mayilvaghanan , Naveen Kumar Pallekonda , Sai Prakash Hadnoor , Ranga Shaarad Ayyagari

Estimating time-varying correlation matrices is challenging because existing methods may adapt slowly to structural changes, impose insufficient regularization, or produce diffuse posterior uncertainty. In moderate dimensions, an additional…

Methodology · Statistics 2026-05-11 Daniel Andrew Coulson , David S. Matteson , Martin T. Wells

In the present work we investigate the multiscale nature of the correlations for high frequency data (1 minute) in different futures markets over a period of two years, starting on the 1st of January 2003 and ending on the 31st of December…

Statistical Finance · Quantitative Finance 2009-11-13 M. Bartolozzi , C. Mellen , T. Di Matteo , T. Aste

Using the correlation matrix formalism we study the temporal aspects of the Warsaw Stock Market evolution as represented by the WIG20 index. The high frequency (1 min) WIG20 recordings over the time period between January 2001 and October…

Data Analysis, Statistics and Probability · Physics 2008-12-02 R. Rak , S. Drozdz , J. Kwapien , P. Oswiecimka

We revisit the index leverage effect, that can be decomposed into a volatility effect and a correlation effect. We investigate the latter using a matrix regression analysis, that we call `Principal Regression Analysis' (PRA) and for which…

Statistical Finance · Quantitative Finance 2013-01-29 Pierre-Alain Reigneron , Romain Allez , Jean-Philippe Bouchaud

We propose a working strategy to describe the eigenvalue statistics of random spin systems along the whole phase diagram with thermal to many-body localization (MBL) transition. Our strategy relies on two random matrix (RM) models with…

Disordered Systems and Neural Networks · Physics 2021-12-24 Wen-Jia Rao

Temporal networks are commonly used to represent dynamical complex systems like social networks, simultaneous firing of neurons, human mobility or public transportation. Their dynamics may evolve on multiple time scales characterising for…

Physics and Society · Physics 2024-02-27 Elsa Andres , Alain Barrat , Márton Karsai

Measuring the topological overlap of two graphs becomes important when assessing the changes between temporally adjacent graphs in a time-evolving network. Current methods depend on the fraction of nodes that have persisting edges. This…

Physics and Society · Physics 2014-03-06 Fiona Pigott , Mauricio Rene Herrera Marin

This paper summarizes some work I've been doing on eigenvalue correlators of Random Matrix Models which show some interesting behaviour. First we consider matrix models with gaps in there spectrum or density of eigenvalues. The…

Mesoscale and Nanoscale Physics · Physics 2009-11-07 N. Deo

Eigenvalue-based detectors are considered as an important method of spectrum sensing since they do not require the information about the primary user (PU) signal. In this paper we propose a method to improve the performance of the…

Information Theory · Computer Science 2015-04-30 Liping Du , Mihir Laghate , Chun-Hao Liu , Danijela Cabric

By applying the multifractal detrended fluctuation analysis to the high-frequency tick-by-tick data from Deutsche B\"orse both in the price and in the time domains, we investigate multifractal properties of the time series of logarithmic…

Other Condensed Matter · Physics 2009-11-10 P. Oswiecimka , J. Kwapien , S. Drozdz

This paper studies the time-varying structure of the equity market with respect to market capitalization. First, we analyze the distribution of the 100 largest companies' market capitalizations over time, in terms of inequality,…

Mathematical Finance · Quantitative Finance 2025-02-21 Nick James , Max Menzies

We show that results from the theory of random matrices are potentially of great interest to understand the statistical structure of the empirical correlation matrices appearing in the study of price fluctuations. The central result of the…

Condensed Matter · Physics 2009-10-31 Laurent Laloux , Pierre Cizeau , Jean-Philippe Bouchaud , Marc Potters