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The insufficient understanding of the credit network structure was recognized as a key factor for regulators' underestimation of the destructive systematic risk during the financial crisis that started in 2007. The existing credit network…

Risk Management · Quantitative Finance 2018-12-05 Xuan Lu , Li Huang , Kangjuan Lyu

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

We investigate the planar maximally filtered graphs of the portfolio of the 300 most capitalized stocks traded at the New York Stock Exchange during the time period 2001-2003. Topological properties such as the average length of shortest…

Physics and Society · Physics 2008-12-02 M. Tumminello , T. Di Matteo , T. Aste , R. N. Mantegna

We analyze the sequence of time intervals between consecutive stock trades of thirty companies representing eight sectors of the U. S. economy over a period of four years. For all companies we find that: (i) the probability density function…

Statistical Mechanics · Physics 2009-11-10 Plamen Ch. Ivanov , Ainslie Yuen , Boris Podobnik , Youngki Lee

We present the clustering analysis of the financial markets of S&P 500 (USA) and Nikkei 225 (JPN) markets over a period of 2006-2019 as an example of a complex system. We investigate the statistical properties of correlation matrices…

Computational Finance · Quantitative Finance 2020-11-12 Hirdesh K. Pharasi , Eduard Seligman , Thomas H. Seligman

It is usually assumed that stock prices reflect a balance between large numbers of small individual sellers and buyers. However, over the past fifty years mutual funds and other institutional shareholders have assumed an ever increasing…

Physics and Society · Physics 2008-12-02 Bertrand M. Roehner

Based on the minute-by-minute data of the Hang Seng Index in Hong Kong and the analysis of probability distribution and autocorrelations, we find that the index fluctuations for the first few minutes of daily opening show behaviors very…

Statistical Mechanics · Physics 2009-10-31 Zhi-Feng Huang

The structure of return spillovers is examined by constructing Granger causality networks using daily closing prices of 20 developed markets from 2nd January 2006 to 31st December 2013. The data is properly aligned to take into account…

General Finance · Quantitative Finance 2015-06-22 Tomáš Výrost , Štefan Lyócsa , Eduard Baumöhl

Technical trading rules have a long history of being used by practitioners in financial markets. Their profitable ability and efficiency of technical trading rules are yet controversial. In this paper, we test the performance of more than…

Trading and Market Microstructure · Quantitative Finance 2015-09-03 Shan Wang , Zhi-Qiang Jiang , Sai-Ping Li , Wei-Xing Zhou

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

We analyze the spectral properties of correlation matrices between distinct statistical systems. Such matrices are intrinsically non symmetric, and lend themselves to extend the spectral analyses usually performed on standard Pearson…

Statistical Finance · Quantitative Finance 2012-06-29 Giacomo Livan , Luca Rebecchi

Most of the analytical techniques used in the business cycle synchronisation literature rely upon the estimation of an empirical correlation matrix of time series data of macroeconomic aggregates, real GDP usually being the key variable.…

Statistical Finance · Quantitative Finance 2008-12-02 Paul Ormerod

We perform return interval analysis of 1-min {\em{realized volatility}} defined by the sum of absolute high-frequency intraday returns for the Shanghai Stock Exchange Composite Index (SSEC) and 22 constituent stocks of SSEC. The scaling…

Statistical Finance · Quantitative Finance 2009-09-11 Fei Ren , Gao-Feng Gu , Wei-Xing Zhou

Market impact has become a subject of increasing concern among academics and industry experts. We put forward a price impact model which considers the heteroscedasticity of price in the time dimension and dependency between permanent impact…

Trading and Market Microstructure · Quantitative Finance 2016-10-28 Shiyu Han , Lan Wu , Yuan Cheng

Records of the traded value f_i(t) of stocks display fluctuation scaling, a proportionality between the standard deviation sigma(i) and the average <f(i)>: sigma(i) ~ f(i)^alpha, with a strong time scale dependence alpha(dt). The…

Physics and Society · Physics 2008-12-02 Zoltan Eisler , Janos Kertesz

Financial market resilience reflects the ability of a financial market to withstand external shocks and to recover from them, while its measurement has yet to be standardized. Accordingly, this paper quantifies the adaptability and…

Risk Management · Quantitative Finance 2025-11-13 Si-Yao Wei , Kun-Liang Jiang , Wei-Xing Zhou

Information diffusion within financial markets plays a crucial role in the process of price formation and the propagation of sentiment and risk. We perform a comparative analysis of information transfer between industry sectors of the…

Statistical Finance · Quantitative Finance 2020-04-17 Peng Yue , Yaodong Fan , Jonathan A. Batten , Wei-Xing Zhou

Market making plays a crucial role in providing liquidity and maintaining stability in financial markets, making it an essential component of well-functioning capital markets. Despite its importance, there is limited research on market…

Portfolio Management · Quantitative Finance 2023-06-06 Shiqi Gong , Shuaiqiang Liu , Danny D. Sun

Air pollution has become a major issue and caused widespread environmental and health problems. Aerosols or particulate matters are an important component of the atmosphere and can transport under complex meteorological conditions. Based on…

Atmospheric and Oceanic Physics · Physics 2018-08-15 Yongwen Zhang , Dean Chen , Jingfang Fan , Shlomo Havlin , Xiaosong Chen

We propose a novel two-stage framework to detect lead-lag relationships in the Chinese A-share market. First, long-term coupling between stocks is measured via daily data using correlation, dynamic time warping, and rank-based metrics.…

Computational Finance · Quantitative Finance 2025-06-25 Jianyong Fang , Sitong Wu , Junfan Tong
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