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The mesoscopic organization of complex systems, from financial markets to the brain, is an intermediate between the microscopic dynamics of individual units (stocks or neurons, in the mentioned cases), and the macroscopic dynamics of the…

Statistical Finance · Quantitative Finance 2015-08-17 Assaf Almog , Ferry Besamusca , Mel MacMahon , Diego Garlaschelli

The nervous system represents time-dependent signals in sequences of discrete action potentials or spikes, all spikes are identical so that information is carried only in the spike arrival times. We show how to quantify this information, in…

Condensed Matter · Physics 2008-02-03 S. P. Strong , Roland Koberle , Rob R. de Ruyter van Steveninck , William Bialek

Here we present a novel approach to statistical analysis of financial time series. The approach is based on $n$-grams frequency dictionaries derived from the quantized market data. Such dictionaries are studied by evaluating their…

Statistical Finance · Quantitative Finance 2013-08-14 Igor Borovikov , Michael Sadovsky

In order to use the advanced inference techniques available for Ising models, we transform complex data (real vectors) into binary strings, by local averaging and thresholding. This transformation introduces parameters, which must be varied…

Statistical Finance · Quantitative Finance 2015-06-17 Hongli Zeng , Rémi Lemoy , Mikko Alava

Biological and artificial systems encode information through several complex nonlinear operations, making their exact study a formidable challenge. These internal mechanisms often take place across multiple timescales and process external…

Statistical Mechanics · Physics 2024-11-19 Giorgio Nicoletti , Daniel M. Busiello

A statistical physics model for the time evolutions of stock portfolios is proposed. In this model the time series of price changes are coded into the sequences of up and down spins. The Hamiltonian of the system is introduced and is…

Statistical Mechanics · Physics 2008-12-02 Jun-ichi Maskawa

In this paper, we quantify the statistical coherence between financial time series by means of the Renyi entropy. With the help of Campbell's coding theorem we show that the Renyi entropy selectively emphasizes only certain sectors of the…

Statistical Finance · Quantitative Finance 2012-02-22 Petr Jizba , Hagen Kleinert , Mohammad Shefaat

Natural and social multivariate systems are commonly studied through sets of simultaneous and time-spaced measurements of the observables that drive their dynamics, i.e., through sets of time series. Typically, this is done via hypothesis…

Statistical Finance · Quantitative Finance 2020-07-01 Riccardo Marcaccioli , Giacomo Livan

The optimal instant of observation of astrophysical phenomena for objects that vary on human time-sales is an important problem, as it bears on the cost-effective use of usually scarce observational facilities. In this paper we address this…

Solar and Stellar Astrophysics · Physics 2023-02-15 Miguel Videla , Rene A. Mendez , Jorge F. Silva , Marcos E. Orchard

Many complex systems - be they financial, natural, or social - are composed of units - such as stocks, neurons, or agents - whose joint activity can be represented as a multivariate time series. An issue of both practical and theoretical…

Maximum entropy estimation is of broad interest for inferring properties of systems across many different disciplines. In this work, we significantly extend a technique we previously introduced for estimating the maximum entropy of a set of…

Data Analysis, Statistics and Probability · Physics 2016-01-05 Elliot A. Martin , Jaroslav Hlinka , Alexander Meinke , Filip Děchtěrenko , Jörn Davidsen

Sequences of correlated binary patterns can represent many time-series data including text, movies, and biological signals. These patterns may be described by weighted combinations of a few dominant structures that underpin specific…

Machine Learning · Statistics 2019-03-29 Jimmy Gaudreault , Arunabh Saxena , Hideaki Shimazaki

Great research efforts have been devoted to exploiting deep neural networks in stock prediction. While long-range dependencies and chaotic property are still two major issues that lower the performance of state-of-the-art deep learning…

Statistical Finance · Quantitative Finance 2021-11-02 Junran Wu , Ke Xu , Xueyuan Chen , Shangzhe Li , Jichang Zhao

For the pedestrian observer, financial markets look completely random with erratic and uncontrollable behavior. To a large extend, this is correct. At first approximation the difference between real price changes and the random walk model…

Statistical Finance · Quantitative Finance 2011-08-22 Laurent Schoeffel

Neuroscientists formulate very different hypotheses about the nature of neural code. At one extreme, it has been argued that neurons encode information in relatively slow changes of individual spikes arriving "rates codes" and the…

Neurons and Cognition · Quantitative Biology 2016-03-10 Agnieszka Pregowska , Janusz Szczepanski , Eligiusz Wajnryb

Binary random variables are the building blocks used to describe a large variety of systems, from magnetic spins to financial time series and neuron activity. In Statistical Physics the Kinetic Ising Model has been introduced to describe…

Statistical Mechanics · Physics 2021-05-26 Carlo Campajola , Fabrizio Lillo , Piero Mazzarisi , Daniele Tantari

Financial markets are a classical example of complex systems as they comprise many interacting stocks. As such, we can obtain a surprisingly good description of their structure by making the rough simplification of binary daily returns.…

Statistical Finance · Quantitative Finance 2014-01-28 Thomas Bury

The growing popularity of wearable sensors has generated large quantities of temporal physiological and activity data. Ability to analyze this data offers new opportunities for real-time health monitoring and forecasting. However, temporal…

Signal Processing · Electrical Eng. & Systems 2021-06-02 Nazgol Tavabi , Kristina Lerman

For the pedestrian observer, financial markets look completely random with erratic and uncontrollable behavior. To a large extend, this is correct. At first approximation the difference between real price changes and the random walk model…

Statistical Finance · Quantitative Finance 2011-08-22 Laurent Schoeffel

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
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