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We study the crash dynamics of the Warsaw Stock Exchange (WSE) by using the Minimal Spanning Tree (MST) networks. We find the transition of the complex network during its evolution from a (hierarchical) power law MST network, representing…

Statistical Finance · Quantitative Finance 2023-07-19 A. Sienkiewicz , T. Gubiec , R. Kutner , Z. R. Struzik

We consider the effects of the 2008 global financial crisis on the global stock market before, during, and after the crisis. We generate complex networks from a cross-correlation matrix such as the threshold network (TN) and the minimal…

General Finance · Quantitative Finance 2018-06-13 Jae Woo Lee , Ashadun Nobi

We have analyzed the cross-correlations of daily fluctuations for N=6 358 US stock prices during the year 1999. From those $N(N-1)/2$ correlations coefficients, the Minimum Spanning Tree (MST) has been built. We have investigated the…

Statistical Mechanics · Physics 2007-05-23 N. Vandewalle , F. Brisbois , X. Tordoir

Using a portfolio of stocks from the London Stock Exchange FTSE100 index (FTSE), we study both the time dependence of their correlations and the normalized tree length of the associated minimal spanning tree (MST). The first four moments of…

Physics and Society · Physics 2009-09-29 R. Coelho , S. Hutzler , P. Repetowicz , P. Richmond

This study investigates how financial market structure reorganizes during the COVID-19 crash using a conditional p-threshold mutual information (MI) based Minimum Spanning Tree (MST) framework. We analyze nonlinear dependencies among the…

Statistical Finance · Quantitative Finance 2026-01-05 Kundan Mukhia , Imran Ansari , S R Luwang , Md Nurujjaman

Detailed analysis of the log-periodic structures as precursors of the financial crashes is presented. The study is mainly based on the German Stock Index (DAX) variation over the 1998 period which includes both, a spectacular boom and a…

Condensed Matter · Physics 2009-10-31 S. Drozdz , F. Ruf , J. Speth , M. Wojcik

We calculated the cross correlations between the half-hourly times series of the ten Dow Jones US economic sectors over the period February 2000 to August 2008, the two-year intervals 2002--2003, 2004--2005, 2008--2009, and also over 11…

Statistical Finance · Quantitative Finance 2015-05-20 Yiting Zhang , Gladys Hui Ting Lee , Jian Cheng Wong , Jun Liang Kok , Manamohan Prusty , Siew Ann Cheong

In a highly interdependent economic world, the nature of relationships between financial entities is becoming an increasingly important area of study. Recently, many studies have shown the usefulness of minimal spanning trees (MST) in…

Statistical Finance · Quantitative Finance 2013-08-19 Zeyu Zheng , Kazuko Yamasaki , Joel N. Tenenbaum , H. Eugene Stanley

A large collection of daily time series for 60 world currencies' exchange rates is considered. The correlation matrices are calculated and the corresponding Minimal Spanning Tree (MST) graphs are constructed for each of those currencies…

Statistical Finance · Quantitative Finance 2009-11-13 A. Z. Gorski , S. Drozdz , J. Kwapien

The minimum spanning tree, based on the concept of ultrametricity, is constructed from the correlation matrix of stock returns. The dynamics of this asset tree can be characterised by its normalised length and the mean occupation layer, as…

Statistical Mechanics · Physics 2009-11-07 J. -P. Onnela , A. Chakraborti , K. Kaski , J. Kertesz

The presence of log-periodic structures before and after stock market crashes is considered to be an imprint of an intrinsic discrete scale invariance (DSI) in this complex system. The fractal framework of the theory leaves open the…

Other Condensed Matter · Physics 2009-11-11 M. Bartolozzi , S. Drozdz , D. B. Leinweber , J. Speth , A. W. Thomas

This paper employs Topological Data Analysis (TDA) to detect extreme events (EEs) in the stock market at a continental level. Previous approaches, which analyzed stock indices separately, could not detect EEs for multiple time series in one…

Statistical Finance · Quantitative Finance 2024-05-28 Anish Rai , Buddha Nath Sharma , Salam Rabindrajit Luwang , Md. Nurujjaman , Sushovan Majhi

The recent financial crisis has stressed the need to understand financial systems as networks of interdependent countries, where cross-border financial linkages play the fundamental role. It has also been emphasized that the relevance of…

Statistical Finance · Quantitative Finance 2015-06-03 Alessandro Spelta , Tanya Araújo

We consider the effects of the global financial crisis through a local Korean financial market around the 2008 crisis. We analyze 185 individual stock prices belonging to the KOSPI (Korea Composite Stock Price Index), cosidering three time…

General Finance · Quantitative Finance 2013-07-29 Ashadun Nobi , Seong Eun Maeng , Gyeong Gyun Ha , Jae Woo Lee

We investigate logarithmic price returns cross-correlations at different time horizons for a set of 25 liquid cryptocurrencies traded on the FTX digital currency exchange. We study how the structure of the Minimum Spanning Tree (MST) and…

Statistical Finance · Quantitative Finance 2022-12-29 Antonio Briola , Tomaso Aste

We present here a topological characterization of the minimal spanning tree that can be obtained by considering the price return correlations of stocks traded in a financial market. We compare the minimal spanning tree obtained from a large…

Statistical Mechanics · Physics 2009-11-07 Giovanni Bonanno , Guido Caldarelli , Fabrizio Lillo , and Rosario N. Mantegna

We critically analyze the possibility of finding signatures of a phase transition by looking exclusively at static quantities of statistical systems, like e.g., the topology of potential energy sub-manifolds (PES). This topological…

Statistical Mechanics · Physics 2009-11-10 Ana C. Ribeiro Teixeira , D. A. Stariolo

The financial markets are understood as complex dynamical systems whose dynamics is analysed mostly using nonstationary and brief data sets that usually come from stock markets. For such data sets, a reliable method of analysis is based on…

Statistical Finance · Quantitative Finance 2022-11-23 Krishnadas M. , K. P. Harikrishnan , G. Ambika

We identify a robust structural signature of stock markets during exogenous shock events by analyzing collective return dynamics across G5 countries. Using Random Matrix Theory, we introduce the complexity gap, defined as the difference…

Statistical Finance · Quantitative Finance 2026-04-22 Kundan Mukhia , Imran Ansari , Md. Nurujjaman

The construction of minimum spanning trees (MSTs) from correlation matrices is an often used method to study relationships in the financial markets. However most of the work on this topic tends to use the Pearson correlation coefficient,…

Computational Engineering, Finance, and Science · Computer Science 2021-02-03 Tristan Millington , Mahesan Niranjan
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