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We measure the influence of different time-scales on the dynamics of financial market data. This is obtained by decomposing financial time series into simple oscillations associated with distinct time-scales. We propose two new time-varying…

Statistical Finance · Quantitative Finance 2016-11-23 Noemi Nava , Tiziana Di Matteo , Tomaso Aste

In this paper we present a rather general phenomenological theory of tick-by-tick dynamics in financial markets. Many well-known aspects, such as the L\'evy scaling form, follow as particular cases of the theory. The theory fully takes into…

Disordered Systems and Neural Networks · Physics 2009-10-31 Enrico Scalas , Rudolf Gorenflo , Francesco Mainardi

We analyze the fragmentation behavior of random clusters on the lattice under a process where bonds between neighboring sites are successively broken. Modeling such structures by configurations of a generalized Potts or random-cluster model…

Statistical Mechanics · Physics 2016-08-08 Eren Metin Elçi , Martin Weigel , Nikolaos G. Fytas

We analyze the hitting time distributions of stock price returns in different time windows, characterized by different levels of noise present in the market. The study has been performed on two sets of data from US markets. The first one is…

Physics and Society · Physics 2009-11-13 Davide Valenti , Bernardo Spagnolo , Giovanni Bonanno

Many human-related activities show power-law decaying interevent time distribution with exponents usually varying between 1 and 2. We study a simple task-queuing model, which produces bursty time series due to the nontrivial dynamics of the…

Physics and Society · Physics 2013-10-22 Szabolcs Vajna , Bálint Tóth , János Kertész

This paper studies an equity market of stochastic dimension, where the number of assets fluctuates over time. In such a market, we develop the fundamental theorem of asset pricing, which provides the equivalence of the following statements:…

Mathematical Finance · Quantitative Finance 2023-09-06 Erhan Bayraktar , Donghan Kim , Abhishek Tilva

We propose a fluctuation analysis to quantify spatial correlations in complex networks. The approach considers the sequences of degrees along shortest paths in the networks and quantifies the fluctuations in analogy to time series. In this…

Data Analysis, Statistics and Probability · Physics 2014-09-15 Diego Rybski , Hernán D. Rozenfeld , Jürgen P. Kropp

The bitcoin price has surged in recent years and it has also exhibited phases of rapid decay. In this paper we address the question to what extent this novel cryptocurrency market can be viewed as a classic or semi-efficient market. Novel…

Statistical Finance · Quantitative Finance 2019-06-26 Josselin Garnier , Knut Solna

We investigate the random walk of prices by developing a simple model relating the properties of the signs and absolute values of individual price changes to the diffusion rate (volatility) of prices at longer time scales. We show that this…

Statistical Finance · Quantitative Finance 2009-11-13 Gabriele La Spada , J. Doyne Farmer , Fabrizio Lillo

We analyze the daily stock data of the Nasdaq Composite index in the 22-year period 1992-2013 and identify market states as clusters of correlation matrices with similar correlation structures. We investigate the stability of the…

Statistical Finance · Quantitative Finance 2015-06-22 Desislava Chetalova , Rudi Schäfer , Thomas Guhr

Using ultra-high-frequency data extracted from the order flows of 23 stocks traded on the Shenzhen Stock Exchange, we study the empirical regularities of order placement in the opening call auction, cool period and continuous auction. The…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Gao-Feng Gu , Wei Chen , Wei-Xing Zhou

We study the continuous time random walk theory from financial tick data of the yen-dollar exchange rate transacted at the Japanese financial market. The dynamical behavior of returns and volatilities in this case is particularly treated at…

Other Condensed Matter · Physics 2008-12-02 Kyungsik Kim , Seong-Min Yoon , C. Christopher Lee , Myung-Kul Yum

This paper investigates the scaling dependencies between measures of "activity" and of "size" for companies included in the FTSE 100. The "size" of companies is measured by the total market capitalization. The "activity" is measured with…

Other Condensed Matter · Physics 2008-12-02 Gilles Zumbach

Dynamical systems in nature exhibit selfsimilar fractal fluctuations and the corresponding power spectra follow inverse power law form signifying long-range space-time correlations identified as self-organized criticality. The physics of…

General Physics · Physics 2008-05-23 A. M. Selvam

We give emphasis on the use of chaos-based rigorous nonlinear technique called Visibility Graph Analysis, to study one economic time series - gold price of USA. This method can offer reliable results with fiinite data. This paper reports…

Statistical Finance · Quantitative Finance 2016-08-04 Susmita Bhaduri , Dipak Ghosh , Subhadeep Ghosh

We model financial transactions as random walks on activity-driven temporal networks. By enforcing fund conservation, our framework analytically derives heavy-tailed distributions for the stationary balances and transaction sizes.…

Physics and Society · Physics 2026-02-25 Carolina E. Mattsson , Claudio Cellerini , Jaume Ojer , Michele Starnini

We find a general formula for the distribution of time averaged observables for weakly non-ergodic systems. Such type of ergodicity breaking is known to describe certain systems which exhibit anomalous fluctuations, e.g. blinking quantum…

Statistical Mechanics · Physics 2009-11-13 Adi Rebenshtok , Eli Barkai

This paper addresses the question of how much to bid to maximize the profit when trading in two electricity markets: the hourly Day-Ahead Auction and the quarter-hourly Intraday Auction. For optimal coordinated bidding many price scenarios…

Statistical Finance · Quantitative Finance 2026-01-27 Michał Narajewski , Florian Ziel

Apparently random financial fluctuations often exhibit varying levels of complexity, chaos. Given limited data, predictability of such time series becomes hard to infer. While efficient methods of Lyapunov exponent computation are devised,…

General Finance · Quantitative Finance 2013-08-08 Varsha S. Kulkarni

In standard Walrasian auctions, the price of a good is defined as the point where the supply and demand curves intersect. Since both curves are generically regular, the response to small perturbations is linearly small. However, a crucial…

Trading and Market Microstructure · Quantitative Finance 2017-01-04 Jonathan Donier , Jean-Philippe Bouchaud
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