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Using high-frequency time series of stock prices and share volumes sizes from January 2002-May 2009, this paper investigates whether the effects of the onset of high-frequency trading, most prominent since 2005, are apparent in the dynamics…

Trading and Market Microstructure · Quantitative Finance 2010-09-22 Reginald D. Smith

This study explores the relationship between R&D intensity, as a measure of innovation, and financial performance among S&P 500 companies over 100 quarters from 1998 to 2023, including multiple crisis periods. It challenges the conventional…

General Economics · Economics 2024-03-20 Panteleimon Kruglov , Charles Shaw

We study the temporal evolution of the holding-time distribution of bitcoins and find that the average distribution of holding-time is a heavy-tailed power law extending from one day to over at least $200$ weeks with an exponent…

Trading and Market Microstructure · Quantitative Finance 2024-01-10 Didier Sornette , Yu Zhang

We describe a Matlab routine that allows us to estimate the jumps in financial asset prices using the Threshold (or Truncation) method of Mancini (2009). The routine is designed for application to five-minute log-returns. The underlying…

Computational Finance · Quantitative Finance 2025-08-27 Cecilia Mancini

The aim of this paper is to investigate the effect of a novel method called linear law-based feature space transformation (LLT) on the accuracy of intraday price movement prediction of cryptocurrencies. To do this, the 1-minute interval…

Statistical Finance · Quantitative Finance 2023-05-09 Marcell T. Kurbucz , Péter Pósfay , Antal Jakovác

By monitoring the time evolution of the most liquid Futures contracts traded globally as acquired using the Bloomberg API from 03 January 2000 until 15 December 2014 we were able to forecast the S&P 500 index beating the Buy and Hold…

Statistical Finance · Quantitative Finance 2016-12-19 Panagiotis Papaioannou , Thomas Dionysopoulos , Dietmar Janetzko , Constantinos Siettos

Using a large database of 8 million institutional trades executed in the U.S. equity market, we establish a clear crossover between a linear market impact regime and a square-root regime as a function of the volume of the order. Our…

Trading and Market Microstructure · Quantitative Finance 2019-03-27 Frédéric Bucci , Michael Benzaquen , Fabrizio Lillo , Jean-Philippe Bouchaud

Computable Information Density (CID), the ratio of the length of a losslessly compressed data file to that of the uncompressed file, is a measure of order and correlation in both equilibrium and nonequilibrium systems. Here we show that…

Statistical Mechanics · Physics 2020-10-26 Stefano Martiniani , Yuval Lemberg , Paul M. Chaikin , Dov Levine

Quantitative understanding of stochastic dynamics in limit order price changes is essential for execution strategy design. We analyze intraday transition dynamics of ask and bid orders across market capitalization tiers using high-frequency…

Statistical Finance · Quantitative Finance 2026-01-09 Salam Rabindrajit Luwang , Kundan Mukhia , Buddha Nath Sharma , Md. Nurujjaman , Anish Rai , Filippo Petroni

We investigate the two components of the total daily return (close-to-close), the overnight return (close-to-open) and the daytime return (open-to-close), as well as the corresponding volatilities of the 2215 NYSE stocks from 1988 to 2007.…

Statistical Finance · Quantitative Finance 2009-06-02 Fengzhong Wang , Shwu-Jane Shieh , Shlomo Havlin , H. Eugene Stanley

We consider the randomness of market trade as the origin of price and return stochasticity. We look at time series of trade values and volumes as random variables during the averaging interval {\Delta} and describe the dependences of…

Statistical Finance · Quantitative Finance 2024-06-18 Victor Olkhov

This paper describes asset price and return disturbances as result of relations between transactions and multiple kinds of expectations. We show that disturbances of expectations can cause fluctuations of trade volume, price and return. We…

General Economics · Economics 2020-09-09 Victor Olkhov

Energy markets and the associated energy futures markets play a crucial role in global economies. We investigate the statistical properties of the recurrence intervals of daily volatility time series of four NYMEX energy futures, which are…

Statistical Finance · Quantitative Finance 2013-12-31 Wen-Jie Xie , Zhi-Qiang Jiang , Wei-Xing Zhou

The bitcoin price has surged in recent years and it has also exhibited phases of rapid decay. In this paper we address the question to what extent this novel cryptocurrency market can be viewed as a classic or semi-efficient market. Novel…

Statistical Finance · Quantitative Finance 2019-06-26 Josselin Garnier , Knut Solna

In a continuous time stochastic economy, this paper considers the problem of consumption and investment in a financial market in which the representative investor exhibits a change in the discount rate. The investment opportunities are a…

Optimization and Control · Mathematics 2011-07-12 Traian A. Pirvu , Huayue Zhang

The composition of natural liquidity has been changing over time. An analysis of intraday volumes for the S&P500 constituent stocks illustrates that (i) volume surprises, i.e., deviations from their respective forecasts, are correlated…

Trading and Market Microstructure · Quantitative Finance 2018-11-15 Seungki Min , Costis Maglaras , Ciamac C. Moallemi

In the present paper we construct stock price processes with the same marginal log-normal law as that of a geometric Brownian motion and also with the same transition density (and returns' distributions) between any two instants in a given…

Pricing of Securities · Quantitative Finance 2008-12-23 Damiano Brigo , Fabio Mercurio

The detrended cross-correlation coefficient $\rho_{\rm DCCA}$ has recently been proposed to quantify the strength of cross-correlations on different temporal scales in bivariate, non-stationary time series. It is based on the detrended…

Data Analysis, Statistics and Probability · Physics 2015-12-09 Jaroslaw Kwapien , Pawel Oswiecimka , Stanislaw Drozdz

The linear growth rate is commonly defined through a simple deterministic relation between the velocity divergence and the matter overdensity in the linear regime. We introduce a formalism that extends this to a nonlinear, stochastic…

Cosmology and Nongalactic Astrophysics · Physics 2015-06-23 Elise Jennings , David Jennings

Long-range temporal and spatial correlations have been reported in a remarkable number of studies. In particular power-law scaling in neural activity raised considerable interest. We here provide a straightforward algorithm not only to…

Quantitative Methods · Quantitative Biology 2015-12-09 Robert Ton , Andreas Daffertshofer