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We propose a two-step graph learning approach for foreign exchange statistical arbitrages (FXSAs), addressing two key gaps in prior studies: the absence of graph-learning methods for foreign exchange rate prediction (FXRP) that leverage…

Trading and Market Microstructure · Quantitative Finance 2025-08-21 Yoonsik Hong , Diego Klabjan

Graph representation learning methods have been widely adopted in financial applications to enhance company representations by leveraging inter-firm relationships. However, current approaches face three key challenges: (1) The advantages of…

Statistical Finance · Quantitative Finance 2025-07-04 Yingjie Niu , Mingchuan Zhao , Valerio Poti , Ruihai Dong

Weighted reciprocity between two agents can be defined as the minimum of sending and receiving value in their bilateral relationship. In financial networks, such reciprocity characterizes the importance of individual banks as both liquidity…

Computational Finance · Quantitative Finance 2024-12-16 Lutz Honvehlmann

Previous studies of the stock price response to trades focused on the dynamics of single stocks, i.e. they addressed the self-response. We empirically investigate the price response of one stock to the trades of other stocks in a correlated…

Statistical Finance · Quantitative Finance 2016-04-26 Shanshan Wang , Rudi Schäfer , Thomas Guhr

We introduce a statistical regression model to investigate the impact of dyadic relations on complex networks generated from observed repeated interactions. It is based on generalised hypergeometric ensembles (gHypEG), a class of…

Physics and Society · Physics 2020-07-21 Giona Casiraghi

We develop and evaluate a family of discrete-time logit-link (LLink) models (including fixed-effects and frailty extensions) to capture latent heterogeneity in repayment behaviour and quantify the effects of socio-temporal factors in…

Risk Management · Quantitative Finance 2025-08-12 Cedric H. A. Koffi , Viani Biatat Djeundje , Olivier Menoukeu Pamen

Large language models (LLMs) are increasingly deployed in agentic frameworks, in which prompts trigger complex tool-based analysis in pursuit of a goal. While these frameworks have shown promise across multiple domains including in finance,…

Statistical Finance · Quantitative Finance 2025-07-14 Dimitrios Emmanoulopoulos , Ollie Olby , Justin Lyon , Namid R. Stillman

The association between log-price increments of exchange-traded equities, as measured by their spot correlation estimated from high-frequency data, exhibits a pronounced upward-sloping and almost piecewise linear relationship at the…

Econometrics · Economics 2026-01-16 Kim Christensen , Ulrich Hounyo , Zhi Liu

Link prediction is an elemental challenge in network science, which has already found applications in guiding laboratorial experiments, digging out drug targets, recommending friends in social networks, probing mechanisms in network…

Physics and Society · Physics 2019-06-26 Ratha Pech , Dong Hao , Yan-Li Lee , Ye Yuan , Tao Zhou

The Foreign Exchange (Forex) is a large decentralized market, on which trading analysis and algorithmic trading are popular. Research efforts have been focusing on proof of efficiency of certain technical indicators. We demonstrate,…

Statistical Finance · Quantitative Finance 2021-06-01 Nikolay Ivanov , Qiben Yan

We analyze the spectral properties of correlation matrices between distinct statistical systems. Such matrices are intrinsically non symmetric, and lend themselves to extend the spectral analyses usually performed on standard Pearson…

Statistical Finance · Quantitative Finance 2012-06-29 Giacomo Livan , Luca Rebecchi

There are many studies dealing with the analysis of similarity among currencies in foreign exchange market by using network analysis approach. In those studies, each currency is represented by a univariate time series of exchange rate…

Statistical Finance · Quantitative Finance 2016-08-30 Mansooreh Kazemilari , Maman Abdurachman Djauhari , Zuhaimy Ismail

Graph embedding technics are studied with interest on public datasets, such as BlogCatalog, with the common practice of maximizing scoring on graph reconstruction, link prediction metrics etc. However, in the financial sector the important…

Social and Information Networks · Computer Science 2019-03-15 Sida Zhou

The Foreign Exchange market is a significant market for speculators, characterized by substantial transaction volumes and high volatility. Accurately predicting the directional movement of currency pairs is essential for formulating a sound…

Statistical Finance · Quantitative Finance 2024-10-08 Kevin Cedric Guyard , Michel Deriaz

While market is a social field where information flows over the interacting agents, there have been not so many methods to observe the spreading information in the prices comprising the market. By incorporating the entropy transfer in…

Statistical Finance · Quantitative Finance 2015-10-19 Hokky Situngkir

Stock price prediction is a challenging problem in the field of finance and receives widespread attention. In recent years, with the rapid development of technologies such as deep learning and graph neural networks, more research methods…

Statistical Finance · Quantitative Finance 2025-05-13 Peng Zhu , Yuante Li , Yifan Hu , Qinyuan Liu , Dawei Cheng , Yuqi Liang

Large Language Models (LLMs) have shown promising results on various language and vision tasks. Recently, there has been growing interest in applying LLMs to graph-based tasks, particularly on Text-Attributed Graphs (TAGs). However, most…

Machine Learning · Computer Science 2024-06-10 Zhongmou He , Jing Zhu , Shengyi Qian , Joyce Chai , Danai Koutra

Decisions taken in our everyday lives are based on a wide variety of information so it is generally very difficult to assess what are the strategies that guide us. Stock market therefore provides a rich environment to study how people take…

General Finance · Quantitative Finance 2016-09-28 Mario Gutiérrez-Roig , Carlota Segura , Jordi Duch , Josep Perelló

Distributed Ledger Technologies provide a mechanism to achieve ordering among transactions that are scattered on multiple participants with no prerequisite trust relations. This mechanism is essentially based on the idea of new transactions…

Probability · Mathematics 2021-10-01 Christian Mönch , Amr Rizk

Difference-in-differences is a widely-used evaluation strategy that draws causal inference from observational panel data. Its causal identification relies on the assumption of parallel trends, which is scale dependent and may be…

Applications · Statistics 2019-06-25 Peng Ding , Fan Li
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