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We discuss the statistical properties of index returns in a financial market just after a major market crash. The observed non-stationary behavior of index returns is characterized in terms of the exceedances over a given threshold. This…

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

The inverse Omori law for foreshocks discovered in the 1970s states that the rate of earthquakes prior to a mainshock increases on average as a power law ~ 1/(t_c-t)^p' of the time to the mainshock occurring at t_c. Here, we show that this…

Statistical Mechanics · Physics 2007-05-23 A. Helmstetter , D. Sornette , J. -R. Grasso

The relaxation dynamics of aftershocks after large volatility shocks are investigated based on two high-frequency data sets of the Shanghai Stock Exchange Composite (SSEC) index. Compared with previous relevant work, we have defined main…

Statistical Finance · Quantitative Finance 2008-12-02 Guo-Hua Mu , Wei-Xing Zhou

Aftershocks of aftershocks - and their aftershock cascades - substantially contribute to the increased seismicity rate and the associated elevated seismic hazard after the occurrence of a large earthquake. Current state-of-the-art…

Geophysics · Physics 2024-11-07 Leila Mizrahi , Dario Jozinović

We study the relaxation dynamics of a financial market just after the occurrence of a crash by investigating the number of times the absolute value of an index return is exceeding a given threshold value. We show that the empirical…

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

The Internet is a complex system, whose temporal behavior is highly nonstationary and exhibits sudden drastic changes regarded as main shocks or catastrophes. Here, analyzing a set of time series data of round-trip tim measured in echo…

Statistical Mechanics · Physics 2009-11-07 Sumiyoshi Abe , Norikazu Suzuki

We study the behavior of U.S. markets both before and after U.S. Federal Open Market Committee (FOMC) meetings, and show that the announcement of a U.S. Federal Reserve rate change causes a financial shock, where the dynamics after the…

Statistical Finance · Quantitative Finance 2010-10-05 Alexander M. Petersen , Fengzhong Wang , Shlomo Havlin , H. Eugene Stanley

Earthquakes are complex physical processes driven by the stick-slip motion of a sliding fault. After the main quake, a series of aftershocks typically follows. These are loosely defined as events that follow a given event and occur within…

Geophysics · Physics 2022-12-12 Pinaki Kumar , Roberto Benzi , Jeannot Trampert , Federico Toschi

The model describing market dynamics after a large financial crash is considered in terms of the stochastic differential equation of Ito. Physically, the model presents an overdamped Brownian particle moving in the nonstationary…

Statistical Finance · Quantitative Finance 2008-12-02 G. L. Buchbinder , K. M. Chistilin

We analyze the memory in volatility by studying volatility return intervals, defined as the time between two consecutive fluctuations larger than a given threshold, in time periods following stock market crashes. Such an aftercrash period…

Physics and Society · Physics 2009-11-13 Philipp Weber , Fengzhong Wang , Irena Vodenska-Chitkushev , Shlomo Havlin , H. Eugene Stanley

The presented paper is devoted to the search for mathematical basis for describing the aftershock evolution of strong earthquakes. We consider the experimental facts and heuristic arguments that allow to make a choice and to focus on the…

Geophysics · Physics 2020-09-24 A. V. Guglielmi , B. I. Klain

Earthquakes occur because of abrupt slips on faults due to accumulated stress in the Earth's crust. Because most of these faults and their mechanisms are not readily apparent, deterministic earthquake prediction is difficult. For effective…

Methodology · Statistics 2013-12-31 Yosihiko Ogata

The emergence of a power-law distribution for the energy released during an earthquake is investigated in several models. Generic features are identified which are based on the self-affine behavior of the stress field prior to an event.…

This paper is devoted to the theory of aftershocks. The history of discovery of the Omori law is briefly described, the initial formulation of the law is given in the form of an algebraic formula describing the decrease in the frequency of…

Geophysics · Physics 2021-04-21 A. V. Guglielmi

Sequences of aftershocks following Omori's empirical law are observed after most major earthquakes, as well as in laboratory-scale fault-mimicking experiments. Nevertheless, the origin of this memory effect is still unclear. In this letter,…

Geophysics · Physics 2024-03-28 A. Mathey , J. Crassous , D. Marsan , J. Weiss , A. Amon

After a large earthquake, the likelihood of successive strong aftershocks needs to be estimated. Exploiting similarities with critical phenomena, we introduce a scaling law for the decay in time following a main shock of the expected number…

Other Condensed Matter · Physics 2007-05-23 Stefano Lise , Maya Paczuski , Attilio Stella

Omori Law describes the evolution of the aftershocks of a strong earthquake. Established at the end of the century before last, it is characterized by the beauty of its form, quite definite clarity, as a result of which it still attracts…

Geophysics · Physics 2022-01-14 A. V. Guglielmi , B. I. Klain , A. D. Zavyalov , O. D. Zotov

After the main shock of an earthquake, a stream of aftershocks that does not subside for a long time is usually observed. Fusakichi Omori found that the frequency of aftershocks decreases hyperbolically with time. It has recently been…

Geophysics · Physics 2023-05-31 Anatol Guglielmi , Alexey Zavyalov , Oleg Zotov , Boris Klain

We study the cascading dynamics immediately before and immediately after 219 market shocks. We define the time of a market shock T_{c} to be the time for which the market volatility V(T_{c}) has a peak that exceeds a predetermined…

Trading and Market Microstructure · Quantitative Finance 2010-10-05 Alexander M. Petersen , Fengzhong Wang , Shlomo Havlin , H. Eugene Stanley

Non-inertial afterslip has been inferred to occur following large earthquakes. An explanation for this slow slip phenomenon is that coseismically generated stresses induce sliding on parts of a fault surface with velocity-strengthening…

Geophysics · Physics 2023-08-04 Brendan J. Meade
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