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Cross-correlation analysis is a powerful tool for understanding the mutual dynamics of time series. This study introduces a new method for predicting the future state of synchronization of the dynamics of two financial time series. To this…

Statistical Finance · Quantitative Finance 2022-11-03 Mostafa Shabani , Martin Magris , George Tzagkarakis , Juho Kanniainen , Alexandros Iosifidis

This work addresses the problem of analyzing multi-channel time series data %. In this paper, we by proposing an unsupervised fusion framework based on %the recently proposed convolutional transform learning. Each channel is processed by a…

Machine Learning · Computer Science 2020-11-10 Pooja Gupta , Jyoti Maggu , Angshul Majumdar , Emilie Chouzenoux , Giovanni Chierchia

High-frequency data observed on the prices of financial assets are commonly modeled by diffusion processes with micro-structure noise, and realized volatility-based methods are often used to estimate integrated volatility. For problems…

Statistics Theory · Mathematics 2010-02-26 Yazhen Wang , Jian Zou

The dynamics of the equal-time cross-correlation matrix of multivariate financial time series is explored by examination of the eigenvalue spectrum over sliding time windows. Empirical results for the S&P 500 and the Dow Jones Euro Stoxx 50…

Statistical Finance · Quantitative Finance 2010-02-02 Thomas Conlon , Heather J. Ruskin , Martin Crane

Multiplicity correlation measurements provide insight into the dynamics of high energy collisions. Models describing these collisions need these correlation measurements to tune the strengths of the underlying QCD processes which influence…

Nuclear Experiment · Physics 2016-04-27 K. Gulbrandsen , C. Soegaard

In this paper we use wavelet concepts to show that correlation coefficient between two financial data's is not constant but varies with scale from high correlation value to strongly anti-correlation value This studies is important because…

Statistical Mechanics · Physics 2009-11-10 Ashok Razdan

In time-series analysis, the term "lead-lag effect" is used to describe a delayed effect on a given time series caused by another time series. lead-lag effects are ubiquitous in practice and are specifically critical in formulating…

Statistical Finance · Quantitative Finance 2020-02-04 Katsuya Ito , Kei Nakagawa

Many physical systems can be adequately modelled using a second order approximation. The problem of plant identification reduces to the problem of estimating the position of a single pair of complex conjugate poles. One approach to the…

Data Analysis, Statistics and Probability · Physics 2012-11-19 Andrew Allison , Derek Abbott

The time proximity of trades across stocks reveals interesting topological structures of the equity market in the United States. In this article, we investigate how such concurrent cross-stock trading behaviors, which we denote as…

Trading and Market Microstructure · Quantitative Finance 2024-05-14 Yutong Lu , Gesine Reinert , Mihai Cucuringu

Using Random Matrix Theory one can derive exact relations between the eigenvalue spectrum of the covariance matrix and the eigenvalue spectrum of its estimator (experimentally measured correlation matrix). These relations will be used to…

Statistical Mechanics · Physics 2009-11-10 Zdzislaw Burda , Jerzy Jurkiewicz

Recently the interest of researchers has shifted from the analysis of synchronous relationships of financial instruments to the analysis of more meaningful asynchronous relationships. Both of those analyses are concentrated only on…

Statistical Finance · Quantitative Finance 2014-06-18 Paweł Fiedor

We discuss some methods to quantitatively investigate the properties of correlation matrices. Correlation matrices play an important role in portfolio optimization and in several other quantitative descriptions of asset price dynamics in…

Statistical Finance · Quantitative Finance 2010-08-25 M. Tumminello , F. Lillo , R. N. Mantegna

In order to pursue the issue of the relation between the financial cross-correlations and the conventional Random Matrix Theory we analyse several characteristics of the stock market correlation matrices like the distribution of…

Statistical Finance · Quantitative Finance 2008-12-02 S. Drozdz , J. Kwapien , P. Oswiecimka

The paper introduces structured machine learning regressions for heavy-tailed dependent panel data potentially sampled at different frequencies. We focus on the sparse-group LASSO regularization. This type of regularization can take…

Econometrics · Economics 2021-11-23 Andrii Babii , Ryan T. Ball , Eric Ghysels , Jonas Striaukas

Technical and fundamental analysis are traditional tools used to analyze individual stocks; however, the finance literature has shown that the price movement of each individual stock correlates heavily with other stocks, especially those…

Computational Engineering, Finance, and Science · Computer Science 2019-03-11 Ran Zhao , Yuntian Deng , Mark Dredze , Arun Verma , David Rosenberg , Amanda Stent

We introduce an innovative framework that leverages advanced big data techniques to analyze dynamic co-movement between stocks and their underlying fundamentals using high-frequency stock market data. Our method identifies leading…

Statistical Finance · Quantitative Finance 2024-11-07 Lyuhong Wang , Jiawei Jiang , Yang Zhao

This paper introduces a novel approach to stock data analysis by employing a Hierarchical Graph Neural Network (HGNN) model that captures multi-level information and relational structures in the stock market. The HGNN model integrates stock…

Machine Learning · Computer Science 2024-12-11 Jianhua Yao , Yuxin Dong , Jiajing Wang , Bingxing Wang , Hongye Zheng , Honglin Qin

Nearly one-half of all trades in financial markets are executed by high-speed, autonomous computer programs -- a type of trading often called high-frequency trading (HFT). Although evidence suggests that HFT increases the efficiency of…

Trading and Market Microstructure · Quantitative Finance 2013-11-19 Benjamin Myers , Austin Gerig

The paper presents new machine learning methods: signal composition, which classifies time-series regardless of length, type, and quantity; and self-labeling, a supervised-learning enhancement. The paper describes further the implementation…

Statistical Finance · Quantitative Finance 2013-05-14 Uri Kartoun

A simple method is proposed to estimate the instantaneous correlations between state variables in a hybrid system from the empirical correlations between observable market quantities such as spot rate, stock price and implied volatility.…

Computational Finance · Quantitative Finance 2023-07-10 Baron Law
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