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We construct a correlation matrix based financial network for a set of New York Stock Exchange (NYSE) traded stocks with stocks corresponding to nodes and the links between them added one after the other, according to the strength of the…

Physics and Society · Physics 2007-05-23 G. Tibely , J. -P. Onnela , J. Saramaki , K. Kaski , J. Kertesz

The concept of multifractality offers a powerful formal tool to filter out multitude of the most relevant characteristics of complex time series. The related studies thus far presented in the scientific literature typically limit themselves…

Statistical Finance · Quantitative Finance 2018-09-25 Stanisław Drożdż , Rafał Kowalski , Paweł Oświȩcimka , Rafał Rak , Robert Gȩbarowski

It has been shown that many complex networks shared distinctive features, which differ in many ways from the random and the regular networks. Although these features capture important characteristics of complex networks, their applicability…

Physics and Society · Physics 2009-11-11 Chang-Yong Lee , Sunghwan Jung

We embrace a fresh perspective to auditing by analyzing a large set of companies as complex financial networks rather than static aggregates of balance sheet data. Preliminary analyses show that network centrality measures within these…

Computational Engineering, Finance, and Science · Computer Science 2023-11-30 M. Boersma , S. Sourabh , L. A. Hoogduin , D. Kandhai

The properties of q-dependent cross-correlation matrices of stock market have been analyzed by using the random matrix theory and complex network. The correlation structures of the fluctuations at different magnitudes have unique…

Statistical Finance · Quantitative Finance 2018-03-14 Longfeng Zhao , Wei Li , Andrea Fenu , Boris Podobnik , Yougui Wang , H. Eugene Stanley

The complexity of financial markets arise from the strategic interactions among agents trading stocks, which manifest in the form of vibrant correlation patterns among stock prices. Over the past few decades, complex financial markets have…

Statistical Finance · Quantitative Finance 2021-02-02 Areejit Samal , Hirdesh K. Pharasi , Sarath Jyotsna Ramaia , Harish Kannan , Emil Saucan , Jürgen Jost , Anirban Chakraborti

We investigate how in complex systems the eigenpairs of the matrices derived from the correlations of multichannel observations reflect the cluster structure of the underlying networks. For this we use daily return data from the NYSE and…

Physics and Society · Physics 2009-11-13 Tapio Heimo , Gergely Tibely , Jari Saramaki , Kimmo Kaski , Janos Kertesz

We apply RMT, Network and MF-DFA methods to investigate correlation, network and multifractal properties of 20 global financial indices. We compare results before and during the financial crisis of 2008 respectively. We find that the…

Statistical Finance · Quantitative Finance 2015-06-04 Sunil Kumar , Nivedita Deo

The decentralized international market of currency trading is a prototypical complex system having a highly heterogeneous composition. To understand the hierarchical structure relating the price movement of different currencies in the…

Statistical Finance · Quantitative Finance 2022-01-07 Abhijit Chakraborty , Soumya Easwaran , Sitabhra Sinha

Complex networks grow subject to structural constraints which affect their measurable properties. Assessing the effect that such constraints impose on their observables is thus a crucial aspect to be taken into account in their analysis. To…

Physics and Society · Physics 2014-07-31 Oleguer Sagarra , Francesc Font-Clos , Conrad J. Pérez-Vicente , Albert Díaz-Guilera

We introduce an event based framework of directional changes and overshoots to map continuous financial data into the so-called Intrinsic Network - a state based discretisation of intrinsically dissected time series. Defining a method for…

Trading and Market Microstructure · Quantitative Finance 2014-02-11 Anton Golub , Gregor Chliamovitch , Alexandre Dupuis , Bastien Chopard

Financial networks have become extremely useful in characterizing the structure of complex financial systems. Meanwhile, the time evolution property of the stock markets can be described by temporal networks. We utilize the temporal network…

Statistical Finance · Quantitative Finance 2018-07-04 Longfeng Zhao , Gang-Jin Wang , Mingang Wang , Weiqi Bao , Wei Li , H. Eugene Stanley

We discuss some methods to quantitatively investigate the properties of correlation matrices. Correlation matrices play an important role in portfolio optimization and in several other quantitative descriptions of asset price dynamics in…

Statistical Finance · Quantitative Finance 2010-08-25 M. Tumminello , F. Lillo , R. N. Mantegna

Over the last two decades, financial systems have been studied and analysed from the perspective of complex networks, where the nodes and edges in the network represent the various financial components and the strengths of correlations…

Statistical Finance · Quantitative Finance 2021-02-02 Areejit Samal , Sunil Kumar , Yasharth Yadav , Anirban Chakraborti

A growing body of studies on systemic risk in financial markets has emphasized the key importance of taking into consideration the complex interconnections among financial institutions. Much effort has been put in modeling the contagion…

The latest financial crisis has painfully revealed the dangers arising from a globally interconnected financial system. Conventional approaches based on the notion of the existence of equilibrium and those which rely on statistical…

Trading and Market Microstructure · Quantitative Finance 2019-12-12 V. Sasidevan , Nils Bertschinger

With an increasing emphasis on network security, much more attention has been attracted to the vulnerability of complex networks. The multi-scale evaluation of vulnerability is widely used since it makes use of combined powers of the links'…

Social and Information Networks · Computer Science 2014-06-03 Li Gou , Bo Wei , Rehan Sadiq , Sankaran Mahadevan , Yong Deng

Stock markets are complex systems exhibiting collective phenomena and particular features such as synchronization, fluctuations distributed as power-laws, non-random structures and similarity to neural networks. Such specific properties…

Statistical Finance · Quantitative Finance 2015-06-17 Thomas Bury

Recently the statistical characterizations of financial markets based on physics concepts and methods attract considerable attentions. We used two possible procedures of analyzing multifractal properties of a time series. The first one uses…

Data Analysis, Statistics and Probability · Physics 2008-12-02 A. Ganchuk , V. Derbentsev , V. Soloviev

There are several metrics (Modularity, Mutual Information, Conductance, etc.) to evaluate the strength of graph clustering in large graphs. These metrics have great significance to measure the effectiveness and they are often used to find…

Social and Information Networks · Computer Science 2016-10-12 Md. Khaledur Rahman
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