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We use statistically validated networks, a recently introduced method to validate links in a bipartite system, to identify clusters of investors trading in a financial market. Specifically, we investigate a special database allowing to…

Trading and Market Microstructure · Quantitative Finance 2015-05-28 Michele Tumminello , Fabrizio Lillo , Jyrki Piilo , Rosario N. Mantegna

We investigate the trading behavior of Finnish individual investors trading the stocks selected to compute the OMXH25 index in 2003 by tracking the individual daily investment decisions. We verify that the set of investors is a highly…

Trading and Market Microstructure · Quantitative Finance 2021-08-30 Federico Musciotto , Luca Marotta , Salvatore Miccichè , Jyrki Piilo , Rosario N. Mantegna

This paper analyzes correlations in patterns of trading of different members of the London Stock Exchange. The collection of strategies associated with a member institution is defined by the sequence of signs of net volume traded by that…

Statistical Finance · Quantitative Finance 2009-11-13 Ilija I. Zovko , J. Doyne Farmer

Although the understanding of and motivation behind individual trading behavior is an important puzzle in finance, little is known about the connection between an investor's portfolio structure and her trading behavior in practice. In this…

General Finance · Quantitative Finance 2014-08-29 Ludvig Bohlin , Martin Rosvall

Multilayer networks are attracting growing attention in many fields, including finance. In this paper, we develop a new tractable procedure for multilayer aggregation based on statistical validation, which we apply to investor networks.…

Trading and Market Microstructure · Quantitative Finance 2018-05-30 Kęstutis Baltakys , Juho Kanniainen , Frank Emmert-Streib

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

Market segmentation of an online auction site is studied by analyzing the users' bidding behavior. The distribution of user activity is investigated and a network of bidders connected by common interest in individual articles is…

Physics and Society · Physics 2008-12-11 Joerg Reichardt , Stefan Bornholdt

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

We propose a methodological framework to study the dynamics of inter-regional investment flow in Europe from a Complex Networks perspective, an approach with recent proven success in many fields including economics. In this work we study…

Physics and Society · Physics 2009-10-21 Stefano Battiston , João F. Rodrigues , Hamza Zeytinoglu

Networks of companies can be constructed by using return correlations. A crucial issue in this approach is to select the relevant correlations from the correlation matrix. In order to study this problem, we start from an empty graph with no…

Statistical Mechanics · Physics 2009-11-10 J. -P. Onnela , K. Kaski , J. Kertesz

The stock market's reaction to the external risk shock is closely related to the cross-shareholding network structure. This paper takes the public information of listed companies in the A-share securities market as the primary sample to…

General Economics · Economics 2022-12-06 Yujue Wang

Since the beginning of the new millennium, stock markets went through every state from long-time troughs, trade suspensions to all-time highs. The literature on asset pricing hence assumes random processes to be underlying the movement of…

Statistical Finance · Quantitative Finance 2019-06-26 Tanya Araújo , Maximilian Göbel

We compare some methods recently used in the literature to detect the existence of a certain degree of common behavior of stock returns belonging to the same economic sector. Specifically, we discuss methods based on random matrix theory…

Disordered Systems and Neural Networks · Physics 2008-12-02 C. Coronnello , M. Tumminello , F. Lillo , S. Miccichè , R. N. Mantegna

Maintaining a balance between returns and volatility is a common strategy for portfolio diversification, whether investing in traditional equities or digital assets like cryptocurrencies. One approach for diversification is the application…

General Economics · Economics 2025-04-01 Dimitar Kitanovski , Igor Mishkovski , Viktor Stojkoski , Miroslav Mirchev

Financial markets are a classical example of complex systems as they comprise many interacting stocks. As such, we can obtain a surprisingly good description of their structure by making the rough simplification of binary daily returns.…

Statistical Finance · Quantitative Finance 2014-01-28 Thomas Bury

We compare three network portfolio selection methods; hierarchical clustering trees, minimum spanning trees and neighbor-Nets, with random and industry group selection methods on twelve years of data from the 30 Dow Jones Industrial Average…

Portfolio Management · Quantitative Finance 2015-12-08 Hannah Cheng Juan Zhan , William Rea , Alethea Rea

A pairwise clustering approach is applied to the analysis of the Dow Jones index companies, in order to identify similar temporal behavior of the traded stock prices. To this end, the chaotic map clustering algorithm is used, where a map is…

Disordered Systems and Neural Networks · Physics 2010-01-31 N. Basalto , R. Bellotti , F. De Carlo , P. Facchi , S. Pascazio

In this paper, we study the connection between the companies in the Swedish capital market. We consider 28 companies included in the determination of the market index OMX30. The network structure of the market is constructed using different…

Statistical Finance · Quantitative Finance 2022-11-01 Elena Farahbakhsh Touli , Hoang Nguyen , Olha Bodnar

Over the past decade, many startups have sprung up, which create a huge demand for financial support from venture investors. However, due to the information asymmetry between investors and companies, the financing process is usually…

Information Retrieval · Computer Science 2020-01-17 Shuqi Xu , Qianming Zhang , Linyuan Lv , Manuel Sebastian Mariani

We propose a novel deep learning architecture suitable for the prediction of investor interest for a given asset in a given time frame. This architecture performs both investor clustering and modelling at the same time. We first verify its…

Machine Learning · Computer Science 2021-03-01 Baptiste Barreau , Laurent Carlier , Damien Challet
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