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In this study, we investigate the statistical properties of the returns and the trading volume. We show a typical example of power-law distributions of the return and of the trading volume. Next, we propose an interacting agent model of…

Statistical Finance · Quantitative Finance 2013-09-11 Taisei Kaizoji

A statistical inference method is developed and tested for pairwise interacting systems whose degrees of freedom are continuous angular variables, such as planar spins in magnetic systems or wave phases in optics and acoustics. We…

Statistical Mechanics · Physics 2015-06-15 P. Tyagi , A. Pagnani , F. Antenucci , M. Ibáñez Berganza , L. Leuzzi

Understanding the dependence structure between response variables is an important component in the analysis of correlated multivariate data. This article focuses on modeling dependence structures in multivariate binary data, motivated by a…

Methodology · Statistics 2024-12-18 Zhi Yang Tho , Francis K. C. Hui , Tao Zou

Classical economics has developed an arsenal of methods, based on the idea of representative agents, to come up with precise numbers for next year's GDP, inflation and exchange rates, among (many) other things. Few, however, will disagree…

Physics and Society · Physics 2023-06-29 Jean-Philippe Bouchaud , Matteo Marsili , Jean-Pierre Nadal

As a typical representation of complex networks studied relatively thoroughly, financial market presents some special details, such as its nonconservation and opinions spreading. In this model, agents congregate to form some clusters, which…

Other Condensed Matter · Physics 2007-05-23 Jie Wang , Chun-Xia Yang , Pei-Ling Zhou , Ying-Di Jin , Tao Zhou , Bing-Hong Wang

An open question in the study of emergent behaviour in multi-agent Bayesian systems is the relationship, if any, between individual and collective inference. In this paper we explore the correspondence between generative models that exist…

Disordered Systems and Neural Networks · Physics 2022-07-15 Conor Heins , Brennan Klein , Daphne Demekas , Miguel Aguilera , Christopher Buckley

In order to overcome the limitations of small system sizes in spin-glass simulations, we investigate the one-dimensional Ising spin chain with power-law interactions. The model has the advantage over traditional higher-dimensional…

Disordered Systems and Neural Networks · Physics 2009-11-11 Helmut G. Katzgraber , Mathias Koerner , Frauke Liers , A. K. Hartmann

Many questions of fundamental interest in todays science can be formulated as inference problems: Some partial, or noisy, observations are performed over a set of variables and the goal is to recover, or infer, the values of the variables…

Statistical Mechanics · Physics 2018-01-24 Lenka Zdeborová , Florent Krzakala

We propose a new model based on the Ising model with the aim to study synaptic plasticity phenomena in neural networks. It is today well established in biology that the synapses or connections between certain types of neurons are…

Disordered Systems and Neural Networks · Physics 2016-07-22 Eugene Pechersky , Guillem Via , Anatoly Yambartsev

Modeling complex systems, like neural networks, simple liquids or flocks of birds, often works in reverse to textbook approaches: given data for which averages and correlations are known, we try to find the parameters of a given model…

Statistical Mechanics · Physics 2023-04-25 Tobias Kühn , Frédéric van Wijland

Recent studies have revealed a number of striking dependence patterns in high frequency stock price dynamics characterizing probabilistic interrelation between two consequent price increments x (push) and y (response) as described by the…

Physics and Society · Physics 2009-11-13 Andrei Leonidov , Vladimir Trainin , Alexander Zatsev , Sergey Zaitsev

The building of mathematical and computer models of cities has a long history. The core elements are models of flows (spatial interaction) and the dynamics of structural evolution. In this article, we develop a stochastic model of urban…

Methodology · Statistics 2018-05-10 L. Ellam , M. Girolami , G. A. Pavliotis , A. Wilson

In this dissertation two simple models of stock exchange are developed and simulated numerically. The first is characterized by centralized trading with a market maker. Unfortunately, this model is unable to generate realistic market…

Statistical Mechanics · Physics 2008-12-02 Hendrik J. Blok

In the last decade, stochastic models have shown to be very useful for quantitative modelling of social processes. Here, a configurational master equation for the description of behavioral changes by pair interactions of individuals is…

Statistical Mechanics · Physics 2009-10-31 Dirk Helbing

Macroscopic price evolution models are commonly used for investment strategies. There are first promising achievements in defining microscopic agent based models for the same purpose. Microscopic models allow a deeper understanding of…

Pricing of Securities · Quantitative Finance 2011-03-29 Sebastian M. Krause , Stefan Bornholdt

In physics we often use very simple models to describe systems with many degrees of freedom, but it is not clear why or how this success can be transferred to the more complex biological context. We consider models for the joint…

Neurons and Cognition · Quantitative Biology 2024-12-06 Luisa Ramirez , William Bialek , Stephanie E. Palmer , David J. Schwab

We consider the equilibrium dynamics of Ising spin models with multi-spin interactions on sparse random graphs (Bethe lattices). Such models undergo a mean field glass transition upon increasing the graph connectivity or lowering the…

Statistical Mechanics · Physics 2009-11-10 Andrea Montanari , Guilhem Semerjian

In two-sided matching markets, the agents are partitioned into two sets. Each agent wishes to be matched to an agent in the other set and has a strict preference over these potential matches. A matching is stable if there are no blocking…

Computer Science and Game Theory · Computer Science 2013-02-26 Georgios Askalidis , Nicole Immorlica , Emmanouil Pountourakis

High frequency data in finance have led to a deeper understanding on probability distributions of market prices. Several facts seem to be well stablished by empirical evidence. Specifically, probability distributions have the following…

Statistical Mechanics · Physics 2009-10-31 Jaume Masoliver , Miquel Montero , Josep M. Porra

Many iterative and non-iterative methods have been developed for inverse problems associated with Ising models. Aiming to derive an accurate non-iterative method for the inverse problems, we employ the tree-reweighted approximation. Using…

Machine Learning · Statistics 2018-05-30 Takashi Sano
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