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In the present work we investigate the multiscale nature of the correlations for high frequency data (1 minute) in different futures markets over a period of two years, starting on the 1st of January 2003 and ending on the 31st of December…

Statistical Finance · Quantitative Finance 2009-11-13 M. Bartolozzi , C. Mellen , T. Di Matteo , T. Aste

We propose a modified time lag random matrix theory in order to study time lag cross-correlations in multiple time series. We apply the method to 48 world indices, one for each of 48 different countries. We find long-range power-law…

Statistical Finance · Quantitative Finance 2015-05-27 Duan Wang , Boris Podobnik , Davor Horvatić , H. Eugene Stanley

We focus on the importance of $q$ moments range used within multifractal detrended fluctuation analysis (MFDFA) to calculate the generalized Hurst exponent spread and multifractal properties of signals. Different orders of detrending…

Data Analysis, Statistics and Probability · Physics 2013-07-26 Grzegorz Pamuła , Dariusz Grech

We study soft persistence (existence in subsequent temporal layers of motifs from the initial layer) of motif structures in Triangulated Maximally Filtered Graphs (TMFG) generated from time-varying Kendall correlation matrices computed from…

Statistical Finance · Quantitative Finance 2021-02-17 Jeremy Turiel , Tomaso Aste

Multiplicative random cascade model naturally reproduces the intermittency or multifractality, which is frequently shown among hierarchical complex systems such as turbulence and financial markets. As described herein, we investigate the…

Statistical Finance · Quantitative Finance 2018-09-05 Jun-ichi Maskawa , Koji Kuroda , Joshin Murai

We study, both analytically and numerically, an ARCH-like, multiscale model of volatility, which assumes that the volatility is governed by the observed past price changes on different time scales. With a power-law distribution of time…

Physics and Society · Physics 2008-12-02 L. Borland , J. -Ph. Bouchaud

Stylized facts can be regarded as constraints for any modeling attempt of price dynamics on a financial market, in that an empirically reasonable model has to reproduce these stylized facts at least qualitatively. The dynamics of market…

Computational Finance · Quantitative Finance 2010-04-12 Stefan Reimann , Andreas Tupak

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

The brain is a system operating on multiple time scales, and characterisation of dynamics across time scales remains a challenge. One framework to study such dynamics is that of fractal geometry. However, currently there exists no…

Neurons and Cognition · Quantitative Biology 2018-12-12 Lucas G. S. França , José G. V. Miranda , Marco Leite , Niraj K. Sharma , Matthew C. Walker , Louis Lemieux , Yujiang Wang

This study examines the effects of Trump-era tariffs on financial market efficiency by applying multifractal detrended fluctuation analysis to the return and absolute return time series of six major financial assets: the S\&P 500, SSEC,…

Statistical Finance · Quantitative Finance 2026-02-03 Tetsuya Takaishi

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

This paper investigates the time-varying structure of Fama and French's (1993; 2015) multi-factor models using Fama and MacBeth's (1973) two-step estimation based on the rolling window method. In particular, we employ the generalized GRS…

Statistical Finance · Quantitative Finance 2024-06-04 Koichiro Moriya , Akihiko Noda

We consider a few quantities that characterize trading on a stock market in a fixed time interval: logarithmic returns, volatility, trading activity (i.e., the number of transactions), and volume traded. We search for the power-law…

Statistical Finance · Quantitative Finance 2016-01-20 Rafal Rak , Stanislaw Drozdz , Jaroslaw Kwapien , Pawel Oswiecimka

A major issue in financial economics is the behavior of asset returns over long horizons. Various estimators of long range dependence have been proposed. Even though some have known asymptotic properties, it is important to test their…

Statistical Mechanics · Physics 2015-06-24 Rafal Weron

We present a phenomenological study of stock price fluctuations of individual companies. We systematically analyze two different databases covering securities from the three major US stock markets: (a) the New York Stock Exchange, (b) the…

Statistical Mechanics · Physics 2009-10-31 V. Plerou , P. Gopikrishnan , L. A. N. Amaral , M. Meyer , H. E. Stanley

Long-range temporal and spatial correlations have been reported in a remarkable number of studies. In particular power-law scaling in neural activity raised considerable interest. We here provide a straightforward algorithm not only to…

Quantitative Methods · Quantitative Biology 2015-12-09 Robert Ton , Andreas Daffertshofer

Financial time series exhibit a number of interesting properties that are difficult to explain with simple models. These properties include fat-tails in the distribution of price fluctuations (or returns) that are slowly removed at longer…

Statistical Finance · Quantitative Finance 2013-11-19 Raoul Golan , Austin Gerig

A fractal approach to the long-short portfolio optimization is proposed. The algorithmic system based on the composition of market-neutral spreads into a single entity was considered. The core of the optimization scheme is a fractal walk…

Portfolio Management · Quantitative Finance 2016-12-20 Sergey Kamenshchikov , Ilia Drozdov

Scaling properties in financial fluctuations are reviewed from the standpoint of statistical physics. We firstly show theoretically that the balance of demand and supply enhances fluctuations due to the underlying phase transition…

Statistical Mechanics · Physics 2008-12-10 H. Takayasu , M. Takayasu , M. P. Okazaki , K. Marumo , T. Shimizu

Based on the well-known Detrended Fluctuation Analysis (DFA) for time series, in this work we describe a DFA for continuous real variable functions. Under certain conditions, DFA accurately predicts the long-term auto-correlation of the…

Chaotic Dynamics · Physics 2023-04-11 Luis Gil-Maqueda , Benjamín A. Itzá-Ortiz