English
Related papers

Related papers: Diffusive and arrested-like dynamics in currency e…

200 papers

This article is concerned with statistics of addition spectra for systems of identical charged particles. A classical model is suggested in order to study fluctuations of Coulomb blockade peak spacings in large two-dimensional semiconductor…

Mesoscale and Nanoscale Physics · Physics 2009-10-31 Yshai Avishai , Daniel Berend , Richard Berkovits

We present an empirical study of the subordination hypothesis for a stochastic time series of a stock price. The fluctuating rate of trading is identified with the stochastic variance of the stock price, as in the continuous-time random…

Physics and Society · Physics 2008-12-02 A. Christian Silva , Victor M. Yakovenko

We investigate the fluctuating incompressible Navier--Stokes equation driven by spatially correlated thermal noise characterized by a single length scale. This formulation is constructed to preserve thermal equilibrium through the…

Biological Physics · Physics 2025-11-19 Sijie Huang , Ayush Saurabh , Steve Presse

Continuous time financial market models are often motivated as scaling limits of discrete time models. The objective of this paper is to establish such a connection for a robust framework. More specifically, we consider discrete time models…

Probability · Mathematics 2024-10-17 David Criens

We analyze the problem of the analytical characterization of the probability distribution of financial returns in the exponential Ornstein-Uhlenbeck model with stochastic volatility. In this model the prices are driven by a Geometric…

Computational Finance · Quantitative Finance 2009-11-13 Giacomo Bormetti , Valentina Cazzola , Guido Montagna , Oreste Nicrosini

Understanding the stochastic behavior of currency exchange rates is critical for assessing financial stability and anticipating market transitions. In this study, we investigate the empirical dynamics of the USD exchange rate in three…

Statistical Finance · Quantitative Finance 2025-07-04 Yazdan Babazadeh Maghsoodlo , Amin Safaeesirat

This paper presents a new interacting particle system and uses it as a spin model for financial market microstructure. The asymptotic analysis of this stochastic process exhibits a lower bound to the contemporaneous measurement of price and…

Probability · Mathematics 2009-11-10 Ted Theodosopoulos

This Chapter reviews statistical models for the probability distribution of money developed in the econophysics literature since the late 1990s. In these models, economic transactions are modeled as random transfers of money between the…

Statistical Finance · Quantitative Finance 2012-04-10 Victor M. Yakovenko

The nonequilibrium critical dynamics of the 2D XY model is investigated numerically through Monte Carlo simulations and analytically in the spin-wave approximation. We focus in particular on the behaviour of the two-time response and…

Statistical Mechanics · Physics 2009-10-31 Ludovic Berthier , Peter C. W. Holdsworth , Mauro Sellitto

Mounting empirical evidence suggests that the observed extreme prices within a trading period can provide valuable information about the volatility of the process within that period. In this paper we define a class of stochastic volatility…

Statistical Finance · Quantitative Finance 2009-01-12 Abel Rodriguez , Henryk Gzyl , German Molina , Enrique ter Horst

Multifractal detrended cross-correlation methodology is described and applied to Foreign exchange (Forex) market time series. Fluctuations of high frequency exchange rates of eight major world currencies over 2010-2018 period are used to…

Statistical Finance · Quantitative Finance 2019-12-17 Robert Gębarowski , Paweł Oświęcimka , Marcin Wątorek , Stanisław Drożdż

The price clustering phenomenon manifesting itself as an increased occurrence of specific prices is widely observed and well-documented for various financial instruments and markets. In the literature, however, it is rarely incorporated…

Statistical Finance · Quantitative Finance 2022-11-23 Vladimír Holý , Petra Tomanová

As a typical representation of complex networks studied relatively thoroughly, financial market presents some special details, such as its nonconservation and opinions spreading. In this model, agents congregate to form some clusters, which…

Other Condensed Matter · Physics 2007-05-23 Jie Wang , Chun-Xia Yang , Pei-Ling Zhou , Ying-Di Jin , Tao Zhou , Bing-Hong Wang

In the first part of this paper (Sections 1-4), we study a standard exchange economy model with Cobb-Douglas type consumers and give a necessary and sufficient condition for the existence of an odd period cycle in the Walras-Samuelson…

General Economics · Economics 2024-04-16 Tomohiro Uchiyama

Subdiffusion is a well established phenomenon in physics. In this paper we apply the subdiffusive dynamics to analyze financial markets. We focus on the financial aspect of time fractional diffusion model with moving boundary i.e. American…

Computational Finance · Quantitative Finance 2021-04-19 Grzegorz Krzyżanowski , Marcin Magdziarz

Extremal dependence between international stock markets is of particular interest in today's global financial landscape. However, previous studies have shown this dependence is not necessarily stationary over time. We concern ourselves with…

Statistical Finance · Quantitative Finance 2017-09-06 Daniela Castro Camilo , Miguel de Carvalho , Jennifer Wadsworth

This paper proposes a novel model of financial prices where: (i) prices are discrete; (ii) prices change in continuous time; (iii) a high proportion of price changes are reversed in a fraction of a second. Our model is analytically…

Trading and Market Microstructure · Quantitative Finance 2024-06-21 Neil Shephard , Justin J. Yang

American options in a multi-asset market model with proportional transaction costs are studied in the case when the holder of an option is able to exercise it gradually at a so-called mixed (randomised) stopping time. The introduction of…

Pricing of Securities · Quantitative Finance 2013-08-14 Alet Roux , Tomasz Zastawniak

We analyze the statistics of daily price change of stock market in the framework of a statistical physics model for the collective fluctuation of stock portfolio. In this model the time series of price changes are coded into the sequences…

Statistical Mechanics · Physics 2009-11-07 Jun-ichi Maskawa

We study the temperature dependence of static and dynamic responses of Coulomb interacting particles in two-dimensional traps across the thermal crossover from an amorphous solid- to liquid-like behaviors. While static correlations, that…

Disordered Systems and Neural Networks · Physics 2017-10-11 Biswarup Ash , J. Chakrabarti , Amit Ghosal