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Risk assessment for rare events is essential for understanding systemic stability in complex systems. As rare events are typically highly correlated, it is important to study heavy-tailed multivariate distributions of the relevant…

Statistical Finance · Quantitative Finance 2025-12-02 Efstratios Manolakis , Anton J. Heckens , Benjamin Köhler , Thomas Guhr

A method of resummation of infinite series of perturbation theory diagrams is applied for studying the properties of random band matrices. The topological classification of Feynman diagrams, which was actively used in last years for matrix…

Statistical Mechanics · Physics 2016-08-31 P. G. Silvestrov

We introduce a particular construction of an autocorrelation matrix of a time series and its analysis based on the random-matrix theory ideas that is capable of unveiling the type of correlations information which is inaccessible to the…

Data Analysis, Statistics and Probability · Physics 2013-06-11 Tayeb Jamali , Hamed Saberi , G. R. Jafari

The classical random matrix theory is mostly focused on asymptotic spectral properties of random matrices as their dimensions grow to infinity. At the same time many recent applications from convex geometry to functional analysis to…

Functional Analysis · Mathematics 2014-03-05 Mark Rudelson , Roman Vershynin

Identifying meaningful relationships between the price movements of financial assets is a challenging but important problem in a variety of financial applications. However with recent research, particularly those using machine learning and…

Statistical Finance · Quantitative Finance 2022-02-21 Rian Dolphin , Barry Smyth , Ruihai Dong

Using frequency distributions of daily closing price time series of several financial market indexes, we investigate whether the bias away from an equiprobable sequence distribution found in the data, predicted by algorithmic information…

Trading and Market Microstructure · Quantitative Finance 2010-08-17 Hector Zenil , Jean-Paul Delahaye

In this paper, we consider the empirical spectral distribution of the sample correlation matrix and investigate its asymptotic behavior under mild assumptions on the data's distribution, when dimension and sample size increase at the same…

Probability · Mathematics 2022-09-01 Nina Dörnemann , Johannes Heiny

Providing a measure of market risk is an important issue for investors and financial institutions. However, the existing models for this purpose are per definition symmetric. The current paper introduces an asymmetric capital asset pricing…

Pricing of Securities · Quantitative Finance 2024-05-07 Abdulnasser Hatemi-J

Catastrophic events, though rare, do occur and when they occur, they have devastating effects. It is, therefore, of utmost importance to understand the complexity of the underlying dynamics and signatures of catastrophic events, such as…

General Finance · Quantitative Finance 2018-09-25 Anirban Chakraborti , Kiran Sharma , Hirdesh K. Pharasi , Sourish Das , Rakesh Chatterjee , Thomas H. Seligman

Many important problems are characterized by the eigenvalues of a large matrix. For example, the difficulty of many optimization problems, such as those arising from the fitting of large models in statistics and machine learning, can be…

The first paper in this series introduced a new family of nonasymptotic matrix concentration inequalities that sharply capture the spectral properties of very general random matrices in terms of an associated noncommutative model. These…

Probability · Mathematics 2025-11-13 Afonso S. Bandeira , Giorgio Cipolloni , Dominik Schröder , Ramon van Handel

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

The gain-loss asymmetry, observed in the inverse statistics of stock indices is present for logarithmic return levels that are over $2\%$, and it is the result of the non-Pearson type auto-correlations in the index. These non-Pearson type…

Statistical Finance · Quantitative Finance 2016-08-24 Bulcsú Sándor , Ingve Simonsen , Bálint Zsolt Nagy , Zoltán Néda

This work investigates the multiplicity and differentiability of eigenfrequencies in structures with various symmetries. In particular, the study explores how the geometric and design variable symmetries affect the distribution of…

Computational Engineering, Finance, and Science · Computer Science 2025-01-28 Shiyao Sun , Kapil Khandelwal

A new methodology has been introduced to clean the correlation matrix of single stocks returns based on a constrained principal component analysis using financial data. Portfolios were introduced, namely "Fundamental Maximum Variance…

Portfolio Management · Quantitative Finance 2020-01-27 Sebastien Valeyre

We find statistically significant correlations in the cosmological matter power spectrum over the full range of observable scales. While the correlations between individual modes are weak, the band-averaged power spectrum shows strong…

Astrophysics · Physics 2009-10-31 A. Meiksin , Martin White

We study the large deviations of sums of correlated random variables described by a matrix product ansatz, which generalizes the product structure of independent random variables to matrices whose non-commutativity is the source of…

Statistical Mechanics · Physics 2014-02-18 Florian Angeletti , Hugo Touchette , Eric Bertin , Patrice Abry

When dealing with non-stationary systems, for which many time series are available, it is common to divide time in epochs, i.e. smaller time intervals and deal with short time series in the hope to have some form of approximate stationarity…

Data Analysis, Statistics and Probability · Physics 2021-11-17 Manan Vyas , T. Guhr , T. H. Seligman

Banded random matrices were introduced as a more realistic alternative to full random matrices for describing the spectral statistics of heavy nuclei. Initially considered by Wigner, they have since become a paradigmatic model for…

Disordered Systems and Neural Networks · Physics 2025-06-10 Adway Kumar Das , Anandamohan Ghosh , Lea F. Santos

In finance, Random Matrix Theory (RMT) is an important tool for filtering out noise from large datasets, revealing true correlations among stocks, enhancing risk management and portfolio optimization. In this study, we use RMT to filter out…

Social and Information Networks · Computer Science 2024-10-11 Pawanesh , Imran Ansari , Niteesh Sahni