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We perform wavelet decomposition of high frequency financial time series into large and small time scale components. Taking the FTSE100 index as a case study, and working with the Haar basis, it turns out that the small scale component…

Statistical Finance · Quantitative Finance 2015-05-27 V. T. X. de Almeida , L. Moriconi

We present a model of financial markets originally proposed for a turbulent flow, as a dynamic basis of its intermittent behavior. Time evolution of the price change is assumed to be described by Brownian motion in a power-law potential,…

Statistical Mechanics · Physics 2009-11-07 Naoki Kozuki , Nobuko Fuchikami

The day-to day fluctuations of Dow Jones Index exhibit fractal fluctuations, namely, a zigzag pattern of successive increases followed by decreases on all space-time scales. Self-similar fractal fluctuations are generic to dynamical systems…

General Physics · Physics 2007-05-23 A. M. Selvam

Most data processing techniques, applied to biomedical and sociological time series, are only valid for random fluctuations that are stationary in time. Unfortunately, these data are often non stationary and the use of techniques of…

Data Analysis, Statistics and Probability · Physics 2009-11-10 M. Ignaccolo , P. Allegrini , P. Grigolini , P. Hamilton , B. J. West

The observable behavior of a complex system reflects the mechanisms governing the internal interactions between the system's components and the effect of external perturbations. Here we show that by capturing the simultaneous activity of…

Disordered Systems and Neural Networks · Physics 2009-11-10 M. Argollo de Menezes , A. -L. Barabasi

Stock market indices are one of the most investigated complex systems in econophysics. Here we extend the existing literature on stock markets in connection with nonextensive statistical mechanics. We explore the nonextensivity of price…

Statistical Finance · Quantitative Finance 2019-05-01 Dusan Stosic , Darko Stosic , Tatijana Stosic

We study analytically the distribution of fluctuations of the quantities whose average yield the usual two-point correlation and linear response functions in three unfrustrated models: the random walk, the $d$ dimensional scalar field and…

Statistical Mechanics · Physics 2012-12-12 Federico Corberi , Leticia F. Cugliandolo

The complex structure of a typical stratus cloud base height (or profile) time series is analyzed with respect to the variability of its fluctuations and their correlations at all experimentally observed temporal scales. Due to the…

Condensed Matter · Physics 2012-09-04 K. Ivanova , H. N. Shirer , E. E. Clothiaux , N. Kitova , M. A. Mikhalev , T. P. Ackerman , M. Ausloos

We model the price of a stock via a Lang\'{e}vin equation with multi-dimensional fluctuations coupled in the price and in time. We generalize previous models in that we assume that the fluctuations conditioned on the time step are compound…

Mathematical Physics · Physics 2008-12-10 Przemyslaw Repetowicz , Peter Richmond

We show that time-dependent fluctuations $\{\Delta x\}$ in foreign exchange rates are accurately described by a random walk in a complex plane that is demarcated into the gain (+) and loss (-) sectors. $\{\Delta x\}$ is the outcome of $N$…

Computational Physics · Physics 2008-12-10 Johnrob Bantang , May Lim , Patricia Arielle Castro , Christopher Monterola , Caesar Saloma

A conditional diffusion model has been developed to analyze intricate conductance fluctuations called universal conductance fluctuations or quantum fingerprints appearing in quantum transport phenomena. The model reconstructs impurity…

Mesoscale and Nanoscale Physics · Physics 2025-06-11 Naoto Yokoi , Yuki Tanaka , Yukito Nonaka , Shunsuke Daimon , Junji Haruyama , Eiji Saitoh

Data series generated by complex systems exhibit fluctuations on many time scales and/or broad distributions of the values. In both equilibrium and non-equilibrium situations, the natural fluctuations are often found to follow a scaling…

Data Analysis, Statistics and Probability · Physics 2008-04-07 Jan W. Kantelhardt

The financial market is nonpredictable, as according to the Bachelier, the mathematical expectation of the speculator is zero. Nevertheless, we observe in the price fluctuations the two distinct scales, short and long time. Behaviour of a…

Physics and Society · Physics 2008-12-02 R. Wojnar

The scaling properties of the time series of asset prices and trading volumes of stock markets are analysed. It is shown that similarly to the asset prices, the trading volume data obey multi-scaling length-distribution of low-variability…

Statistical Mechanics · Physics 2008-12-02 Robert Kitt , Jaan Kalda

There may be structural principles pertaining to the general behavior of systems that lead to similarities in a variety of different contexts. Classic examples include the descriptive power of fractals, the importance of surface area to…

Earth and Planetary Astrophysics · Physics 2013-12-19 Bruce S. Lieberman , Adrian L. Melott

The fluctuations in nonequilibrium systems are under intense theoretical and experimental investigation. Topical ``fluctuation relations'' describe symmetries of the statistical properties of certain observables, in a variety of models and…

Statistical Mechanics · Physics 2011-09-08 Lamberto Rondoni , Carlos Mejia-Monasterio

The appropriate weather prediction is a challenging task and it can be feasible with proper wind speed fluctuation analysis. In this current paper daubechies-4 wavelet is used to analyze the winter wind speed fluctuations due to lesser…

Computational Engineering, Finance, and Science · Computer Science 2016-12-06 Sabyasachi Mukhopadhyay , Prasanta K Panigrahi

By analyzing the movements of quiet standing persons by means of wavelet statistics, we observe multiple scaling regions in the underlying body dynamics. The use of the wavelet-variance function opens the possibility to relate scaling…

Biological Physics · Physics 2009-11-06 S. Thurner , C. Mittermaier , R. Hanel , K. Ehrenberger

Stylized facts can be regarded as constraints for any modeling attempt of price dynamics on a financial market, in that an empirically reasonable model has to reproduce these stylized facts at least qualitatively. The dynamics of market…

Computational Finance · Quantitative Finance 2010-04-12 Stefan Reimann , Andreas Tupak

We investigate the "compass rose" (Crack, T.F. and Ledoit, O. (1996), Journal of Finance, 51(2), pg. 751-762) patterns revealed in phase portraits (delay plots) of stock returns. The structures observed in these diagrams have been…

Other Condensed Matter · Physics 2009-11-10 Antonios Antoniou , Constantinos E. Vorlow