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We follow up on the study of correlations between GDP's of rich countries. We analyze web-downloaded data on GDP that we use as individual wealth signatures of the country economical state. We calculate the yearly fluctuations of the GDP.…

Physics and Society · Physics 2012-09-25 M. Ausloos , R. Lambiotte

Network theory proved recently to be useful in the quantification of many properties of financial systems. The analysis of the structure of investment portfolios is a major application since their eventual correlation and overlap impact the…

Statistical Finance · Quantitative Finance 2018-01-09 Danilo Delpini , Stefano Battiston , Guido Caldarelli , Massimo Riccaboni

Understanding the dependence structure of asset returns is fundamental in risk assessment and is particularly relevant in a portfolio diversification strategy. We propose a clustering approach where evidence accumulated in a multiplicity of…

Applications · Statistics 2025-10-08 Andrea Mecchina , Roberta Pappadà , Nicola Torelli

We construct a correlation matrix based financial network for a set of New York Stock Exchange (NYSE) traded stocks with stocks corresponding to nodes and the links between them added one after the other, according to the strength of the…

Physics and Society · Physics 2007-05-23 G. Tibely , J. -P. Onnela , J. Saramaki , K. Kaski , J. Kertesz

A pairwise clustering approach is applied to the analysis of the Dow Jones index companies, in order to identify similar temporal behavior of the traded stock prices. To this end, the chaotic map clustering algorithm is used, where a map is…

Disordered Systems and Neural Networks · Physics 2010-01-31 N. Basalto , R. Bellotti , F. De Carlo , P. Facchi , S. Pascazio

Complex networks are commonly used to explore human behavior. However, previous studies largely overlooked the geographical and economic factors embedded in collective attention. To address this, we construct attention networks from…

Physics and Society · Physics 2025-08-13 Ke-ke Shang , Jiangli Zhu , Junfan Yi , Liwen Zhang , Junjie Yang , Ge Guo , Zixuan Jin , Michael Small

The evolution with time of the correlation structure of equity returns is studied by means of a filtered network approach investigating persistences and recurrences and their implications for risk diversification strategies. We build…

Portfolio Management · Quantitative Finance 2014-10-22 Nicoló Musmeci , Tomaso Aste , Tiziana Di Matteo

There is an emerging consensus in the literature that locally embedded capabilities and industrial know-how are key determinants of growth and diversification processes. In order to model these dynamics as a branching process, whereby…

General Economics · Economics 2022-01-20 Neave O'Clery , Stephen Kinsella

Clustering bifurcations are investigated by considering models of globally coupled map lattices. Typical classes of clustering bifurcations are revealed. The clustering bifurcation thresholds of the coupled system are closely related to the…

chao-dyn · Physics 2009-10-30 Fagen Xie , Gang Hu

This paper analyzes correlations in patterns of trading of different members of the London Stock Exchange. The collection of strategies associated with a member institution is defined by the sequence of signs of net volume traded by that…

Statistical Finance · Quantitative Finance 2009-11-13 Ilija I. Zovko , J. Doyne Farmer

It appears that the dynamical status of clusters and groups of galaxies is related to the large-scale structure of the Universe. A few interesting trends have been established: (1) The Cluster Substructure - Alignment Connection, by which…

Astrophysics · Physics 2009-11-10 Manolis Plionis

We study how to assess the potential benefit of diversifying an equity portfolio by investing within and across equity sectors. We analyse 20 years of US stock price data, which includes the global financial crisis (GFC) and the COVID-19…

Portfolio Management · Quantitative Finance 2022-06-22 Nick James , Max Menzies , Georg A. Gottwald

We analyze the multilayer architecture of the global input-output network using sectoral trade data (WIOD, 2016 release). With a focus on the mesoscale structure and related properties, our multilayer analysis takes into consideration the…

Econometrics · Economics 2022-11-10 Rosanna Grassi , Paolo Bartesaghi , Gian Paolo Clemente , Duc Thi Luu

This study examines insurance companies' financial performance and reporting trends within the medical sector using advanced clustering techniques to identify distinct patterns. Four clusters were identified by analyzing financial ratios…

Computational Finance · Quantitative Finance 2025-03-20 Evans Kiptoo Korir , Zsolt Vizi

As a quantitative characterization of the complicated economy, Macroeconomic Variables (MEVs), including GDP, inflation, unemployment, income, spending, interest rate, etc., are playing a crucial role in banks' portfolio management and…

Risk Management · Quantitative Finance 2024-05-22 Garvit Arora , Shubhangi Tiwari , Ying Wu , Xuan Mei

Understanding and forecasting changing market conditions in complex economic systems like the financial market is of great importance to various stakeholders such as financial institutions and regulatory agencies. Based on the finding that…

Statistical Finance · Quantitative Finance 2023-05-10 Tobias Wand , Martin Heßler , Oliver Kamps

We study the cluster dynamics of multichannel (multivariate) time series by representing their correlations as time-dependent networks and investigating the evolution of network communities. We employ a node-centric approach that allows us…

Physics and Society · Physics 2015-05-13 Daniel J. Fenn , Mason A. Porter , Mark McDonald , Stacy Williams , Neil F. Johnson , Nick S. Jones

We compare some methods recently used in the literature to detect the existence of a certain degree of common behavior of stock returns belonging to the same economic sector. Specifically, we discuss methods based on random matrix theory…

Disordered Systems and Neural Networks · Physics 2008-12-02 C. Coronnello , M. Tumminello , F. Lillo , S. Miccichè , R. N. Mantegna

Financial markets, being spectacular examples of complex systems, display rich correlation structures among price returns of different assets. The correlation structures change drastically, akin to phase transitions in physical phenomena,…

Statistical Finance · Quantitative Finance 2020-07-23 Anirban Chakraborti , Hrishidev , Kiran Sharma , Hirdesh K. Pharasi

A financial system contains many elements networked by their relationships. Extensive works show that topological structure of the network stores rich information on evolutionary behaviors of the system such as early warning signals of…

Statistical Finance · Quantitative Finance 2018-05-09 Li Zhou , Lu Qiu , Changgui Gu , Huijie Yang