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We explore the evolution of daily returns of four major US stock market indices during the technology crash of 2000, and the financial crisis of 2007-2009. Our methodology is based on topological data analysis (TDA). We use persistence…

Mathematical Finance · Quantitative Finance 2017-11-22 Marian Gidea , Yuri Katz

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

I find a topological arrangement of stocks traded in a financial market which has associated a meaningful economic taxonomy. The topological space is a graph connecting the stocks of the portfolio analyzed. The graph is obtained starting…

Statistical Mechanics · Physics 2009-10-31 Rosario N. Mantegna

We present a heuristic argument for the propensity of Topological Data Analysis (TDA) to detect early warning signals of critical transitions in financial time series. Our argument is based on the Log-Periodic Power Law Singularity (LPPLS)…

Statistical Finance · Quantitative Finance 2023-04-17 Samuel W. Akingbade , Marian Gidea , Matteo Manzi , Vahid Nateghi

The financial crisis clearly illustrated the importance of characterizing the level of 'systemic' risk associated with an entire credit network, rather than with single institutions. However, the interplay between financial distress and…

Physics and Society · Physics 2015-12-10 Tiziano Squartini , Iman van Lelyveld , Diego Garlaschelli

Topological Data Analysis (TDA) is a modern approach to Data Analysis focusing on the topological features of data; it has been widely studied in recent years and used extensively in Biology, Physics, and many other areas. However,…

Mathematical Finance · Quantitative Finance 2023-07-11 Miguel A. Ruiz-Ortiz , José Carlos Gómez-Larrañaga , Jesús Rodríguez-Viorato

We analyze the time series of four major cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Ripple) before the digital market crash at the end of 2017 - beginning 2018. We introduce a methodology that combines topological data analysis with…

Mathematical Finance · Quantitative Finance 2018-09-05 Marian Gidea , Daniel Goldsmith , Yuri Katz , Pablo Roldan , Yonah Shmalo

Topological data analysis is an emerging area in exploratory data analysis and data mining. Its main tool, persistent homology, has become a popular technique to study the structure of complex, high-dimensional data. In this paper, we…

Graphics · Computer Science 2017-10-04 Mustafa Hajij , Bei Wang , Carlos Scheidegger , Paul Rosen

The study of time-varying (dynamic) networks (graphs) is of fundamental importance for computer network analytics. Several methods have been proposed to detect the effect of significant structural changes in a time series of graphs. The…

Social and Information Networks · Computer Science 2017-07-25 Peter Wills , Francois G. Meyer

Topological Data Analysis (TDA) is the collection of mathematical tools that capture the structure of shapes in data. Despite computational topology and computational geometry, the utilization of TDA in time series and signal processing is…

Information Retrieval · Computer Science 2018-10-23 Shafie Gholizadeh , Wlodek Zadrozny

Financial networks have become extremely useful in characterizing the structure of complex financial systems. Meanwhile, the time evolution property of the stock markets can be described by temporal networks. We utilize the temporal network…

Statistical Finance · Quantitative Finance 2018-07-04 Longfeng Zhao , Gang-Jin Wang , Mingang Wang , Weiqi Bao , Wei Li , H. Eugene Stanley

The recent financial crisis has stressed the need to understand financial systems as networks of interdependent countries, where cross-border financial linkages play the fundamental role. It has also been emphasized that the relevance of…

Statistical Finance · Quantitative Finance 2015-06-03 Alessandro Spelta , Tanya Araújo

Topological data analysis has been acknowledged as one of the most successful mathematical data analytic methodologies in various fields including medicine, genetics, and image analysis. In this paper, we explore the potential of this…

Statistical Finance · Quantitative Finance 2020-08-27 Wonse Kim , Younng-Jin Kim , Gihyun Lee , Woong Kook

Following the financial crisis of 2007-2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily…

Risk Management · Quantitative Finance 2017-02-28 Marco Bardoscia , Stefano Battiston , Fabio Caccioli , Guido Caldarelli

Topological Data Analysis (TDA) has recently gained significant attention in the field of financial prediction. However, the choice of point cloud construction methods, topological feature representations, and classification models has a…

Machine Learning · Computer Science 2024-11-22 Dazhi Huang , Pengcheng Xu , Xiaocheng Huang , Jiayi Chen

To provide a phenomenological theory for the various interesting transitions in restructuring networks we employ a statistical mechanical approach with detailed balance satisfied for the transitions between topological states. This enables…

Statistical Mechanics · Physics 2007-05-23 Imre Derenyi , Illes Farkas , Gergely Palla , Tamas Vicsek

This paper proposes a novel approach for detecting the topology of distribution networks based on the analysis of time series measurements. The time-based analysis approach draws on data from high-precision phasor measurement units (PMUs or…

Systems and Control · Computer Science 2015-04-23 Guido Cavraro , Reza Arghandeh , Alexandra von Meier

Topology identification and inference of processes evolving over graphs arise in timely applications involving brain, transportation, financial, power, as well as social and information networks. This chapter provides an overview of graph…

Signal Processing · Electrical Eng. & Systems 2025-12-12 Gonzalo Mateos , Yanning Shen , Georgios B. Giannakis , Ananthram Swami

A major impact of globalization has been the information flow across the financial markets rendering them vulnerable to financial contagion. Research has focused on network analysis techniques to understand the extent and nature of such…

Statistical Finance · Quantitative Finance 2019-11-15 Sayantan Banerjee , Kousik Guhathakurta

The combination of the network theoretic approach with recently available abundant economic data leads to the development of novel analytic and computational tools for modelling and forecasting key economic indicators. The main idea is to…

General Finance · Quantitative Finance 2014-03-05 Andreas Joseph , Irena Vodenska , Eugene Stanley , Guanrong Chen
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