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We propose a diffusion process to describe the global dynamic evolution of credit operations at a national level given observed operations at a subnational level in a sovereign country. Empirical analysis with a unique dataset from…

General Finance · Quantitative Finance 2018-02-07 Leno S. Rocha , Frederico S. A. Rocha , Thársis T. P. Souza

We studied the topology of correlation networks among 34 major currencies using the concept of a minimal spanning tree and hierarchical tree for the full years of 2007-2008 when major economic turbulence occurred. We used the USD (US…

General Finance · Quantitative Finance 2010-10-28 Mustafa Keskin , Bayram Deviren , Yusuf Kocakaplan

We investigate the concept of network momentum, a novel trading signal derived from momentum spillover across assets. Initially observed within the confines of pairwise economic and fundamental ties, such as the stock-bond connection of the…

Portfolio Management · Quantitative Finance 2023-08-25 Xingyue Pu , Stephen Roberts , Xiaowen Dong , Stefan Zohren

Given the rapid recent trend of urbanization, a better understanding of how urban infrastructure mediates socioeconomic interactions and economic systems is of vital importance. While the accessibility of location-enabled devices as well as…

About two million U.S. corporations and partnerships are linked to each other and human investors by about 15 million owner-subsidiary links. Comparable social networks such as corporate board memberships and socially-built systems such as…

General Economics · Economics 2024-01-23 Ben Klemens

In this paper we present a statistical analysis about the characteristics that we intend to influence in the performance of the neural networks in terms of assertiveness in the prediction of Brazilian stock returns. We created a population…

Statistical Finance · Quantitative Finance 2019-01-30 Leonardo Felizardo , Afonso Pinto

The reliable and resilient operation of the smart grid necessitates a clear understanding of the intra-and-inter dependencies of its power and communication systems. This understanding can only be achieved by accurately depicting the…

Networking and Internet Architecture · Computer Science 2020-08-03 Sohini Roy , Harish Chandrasekaran , Anamitra Pal , Arunabha Sen

We investigate logarithmic price returns cross-correlations at different time horizons for a set of 25 liquid cryptocurrencies traded on the FTX digital currency exchange. We study how the structure of the Minimum Spanning Tree (MST) and…

Statistical Finance · Quantitative Finance 2022-12-29 Antonio Briola , Tomaso Aste

This paper combines traditional panel econometrics with random forest machine learning to revisit the relationship between exchange rate regimes and economic growth for 27 transition economies over 1991-2019. Exploiting the Couharde-Grekou…

General Economics · Economics 2026-05-19 Marjan Petreski

We use Random Matrix Theory (RMT) and information theory to analyze the correlations and flow of information between 64,939 news from The New York Times and 40 world financial indices during 10 months along the period 2015-2016. The set of…

Statistical Finance · Quantitative Finance 2018-04-04 Andrés García-Medina , Leonidas Sandoval Junior , Efraín Urrutia Bañuelos , A. M. Martínez-Argüello

Climate change refers to substantial long-term variations in weather patterns. In this work, we employ a Machine Learning (ML) technique, the Random Forest (RF) algorithm, to forecast the monthly average temperature for Brazilian's states…

Understanding and predicting how complex systems respond to external perturbations is a central challenge in nonequilibrium statistical physics. Here we consider continuous-time Markov networks, which we subject to perturbations along a…

Statistical Mechanics · Physics 2026-02-25 Robin Bebon , Thomas Speck

We show how inter-asset dependence information derived from market prices of options can lead to improved model-free price bounds for multi-asset derivatives. Depending on the type of the traded option, we either extract correlation…

Mathematical Finance · Quantitative Finance 2023-09-26 Jonathan Ansari , Eva Lütkebohmert , Ariel Neufeld , Julian Sester

Financial markets are complex adaptive systems characterized by collective behavior and abrupt regime shifts, particularly during crises. This paper studies time-varying dependencies in Nordic equity markets and examines whether…

Portfolio Management · Quantitative Finance 2026-01-13 Maksym A. Girnyk

This paper assesses the empirical content of one of the most prevalent assumptions in the economics of networks literature, namely the assumption that decision makers have full knowledge about the networks they interact on. Using network…

Physics and Society · Physics 2018-02-23 Emily Breza , Arun G. Chandrasekhar , Alireza Tahbaz-Salehi

This paper investigates the structural dynamics of stock market volatility through the Financial Chaos Index, a tensor- and eigenvalue-based measure designed to capture realized volatility via mutual fluctuations among asset prices.…

Statistical Finance · Quantitative Finance 2025-04-29 Masoud Ataei

We consider a discrete-time dynamical process on graphs, firstly introduced in connection with a protocol for controlling large networks of spin 1/2 quantum mechanical particles [Phys. Rev. Lett. 99, 100501 (2007)]. A description is as…

Combinatorics · Mathematics 2013-09-17 Simone Severini

We model and forecast the early evolution of the COVID-19 pandemic in Brazil using Brazilian recent data from February 25, 2020 to March 30, 2020. This early period accounts for unawareness of the epidemiological characteristics of the…

Populations and Evolution · Quantitative Biology 2020-06-16 Saulo B. Bastos , Daniel O. Cajueiro

Cross-border equity and long-term debt securities portfolio investment networks are analysed from 2002 to 2012, covering the 2008 global financial crisis. They serve as network-proxies for measuring the robustness of the global financial…

General Finance · Quantitative Finance 2014-03-05 Andreas Joseph , Stephan Joseph , Guanrong Chen

The minimum spanning tree, based on the concept of ultrametricity, is constructed from the correlation matrix of stock returns. The dynamics of this asset tree can be characterised by its normalised length and the mean occupation layer, as…

Statistical Mechanics · Physics 2009-11-07 J. -P. Onnela , A. Chakraborti , K. Kaski , J. Kertesz