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The recent financial crisis have generated renewed interests in fragilities of global financial networks among economists and regulatory authorities. In particular, a potential vulnerability of the financial networks is the "financial…

General Finance · Quantitative Finance 2014-08-27 Bhaskar DasGupta , Lakshmi Kaligounder

The structure entropy is an important index to illuminate the structure property of the complex network. Most of the existing structure entropies are based on the degree distribution of the complex network. But the structure entropy based…

Social and Information Networks · Computer Science 2014-08-27 Qi Zhang , Meizhu Li , Yong Deng

We investigate the properties of correlation based networks originating from economic complex systems, such as the network of stocks traded at the New York Stock Exchange (NYSE). The weaker links (low correlation) of the system are found to…

Statistical Finance · Quantitative Finance 2008-12-02 Antonios Garas , Panos Argyrakis , Shlomo Havlin

We consider a model of contagion in financial networks recently introduced in the literature, and we characterize the effect of a few features empirically observed in real networks on the stability of the system. Notably, we consider the…

General Finance · Quantitative Finance 2011-09-07 Fabio Caccioli , Thomas A. Catanach , J. Doyne Farmer

In a system containing a large number of interacting stochastic processes, there will typically be many non-zero correlation coefficients. This makes it difficult to either visualize the system's inter-dependencies, or identify its dominant…

Other Condensed Matter · Physics 2011-09-06 Mark McDonald , Omer Suleman , Stacy Williams , Sam Howison , Neil F. Johnson

The identification of the limiting factors in the dynamical behavior of complex systems is an important interdisciplinary problem which often can be traced to the spectral properties of an underlying network. By deriving a general relation…

Disordered Systems and Neural Networks · Physics 2007-07-03 Adilson E. Motter

South Africa assumes a significant position in the insurance landscape of Africa. The present research based upon qualitative and quantitative analysis, shows that it shows the characteristics of a Complex Adaptive System. In addition, a…

Computers and Society · Computer Science 2011-10-20 Satyakama Paul , Bhekisipho Twala , Tshilidzi Marwala

In this brief review, we critically examine the recent work done on correlation-based networks in financial systems. The structure of empirical correlation matrices constructed from the financial market data changes as the individual stock…

Computational Finance · Quantitative Finance 2020-04-21 Vishwas Kukreti , Hirdesh K. Pharasi , Priya Gupta , Sunil Kumar

Different network structures are compiared with respect to degree of robustnes of identification statistical procedures. It is shown that threshold (market) graph, cliques and independent sets in the threshold (market) graphs are preferable…

Statistics Theory · Mathematics 2018-01-31 L. P. Semenov , V. A. Kalyagin , P. A. Koldanov , M. V. Batsyn , S. V. Golovanova , M. A. Voronina

Complex systems are usually represented as an intricate set of relations between their components forming a complex graph or network. The understanding of their functioning and emergent properties are strongly related to their structural…

Data Analysis, Statistics and Probability · Physics 2014-01-08 Sergio Gomez , Alberto Fernandez , Clara Granell , Alex Arenas

Financial markets, being spectacular examples of complex systems, display rich correlation structures among price returns of different assets. The correlation structures change drastically, akin to phase transitions in physical phenomena,…

Statistical Finance · Quantitative Finance 2020-07-23 Anirban Chakraborti , Hrishidev , Kiran Sharma , Hirdesh K. Pharasi

We review the state of the art of clustering financial time series and the study of their correlations alongside other interaction networks. The aim of this review is to gather in one place the relevant material from different fields, e.g.…

Statistical Finance · Quantitative Finance 2021-04-14 Gautier Marti , Frank Nielsen , Mikołaj Bińkowski , Philippe Donnat

Modularity is designed to measure the strength of division of a network into clusters (known also as communities). Networks with high modularity have dense connections between the vertices within clusters but sparse connections between…

Probability · Mathematics 2017-07-18 Liudmila Ostroumova Prokhorenkova , Pawel Pralat , Andrei Raigorodskii

In a recent paper, it has been suggested that the controllability of a diffusively coupled complex network, subject to localized feedback loops at some of its vertices, can be assessed by means of a Master Stability Function approach, where…

Disordered Systems and Neural Networks · Physics 2007-08-09 Francesco Sorrentino

Algorithm of multicurrency trading at the market of Forex is realized on the basis of nonlinear stochastic wavelets. The distinctive feature of the algorithm is the possibility of weakly- and strongly connected horizontal self-assemblies,…

General Finance · Quantitative Finance 2012-04-23 A. M. Avdeenko

In this paper, we provide novel definitions of clustering coefficient for weighted and directed multilayer networks. We extend in the multilayer theoretical context the clustering coefficients proposed in the literature for weighted…

Econometrics · Economics 2022-12-26 Paolo Bartesaghi , Gian Paolo Clemente , Rosanna Grassi

Recently, self-similarity of complex networks have attracted much attention. Fractal dimension of complex network is an open issue. Hub repulsion plays an important role in fractal topologies. This paper models the repulsion among the nodes…

Social and Information Networks · Computer Science 2014-04-03 Haixin Zhang , Daijun Wei , Yong Hu , Xin Lan , Yong Deng

Modularity is a popular metric for quantifying the degree of community structure within a network. The distribution of the largest eigenvalue of a network's edge weight or adjacency matrix is well studied and is frequently used as a…

Methodology · Statistics 2020-07-15 Rong Ma , Ian Barnett

Consider an equity market with $n$ stocks. The vector of proportions of the total market capitalizations that belong to each stock is called the market weight. The market weight defines the market portfolio which is a buy-and-hold portfolio…

Portfolio Management · Quantitative Finance 2015-07-29 Soumik Pal , Ting-Kam Leonard Wong

Manipulation is an important issue for both developed and emerging stock markets. For the study of manipulation, it is critical to analyze investor behavior in the stock market. In this paper, an analysis of the full transaction records of…

Trading and Market Microstructure · Quantitative Finance 2011-10-12 Xiao-Qian Sun , Xue-Qi Cheng , Hua-Wei Shen , Zhao-Yang Wang
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