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Pearson correlation and mutual information based complex networks of the day-to-day returns of US S&P500 stocks between 1985 and 2015 have been constructed in order to investigate the mutual dependencies of the stocks and their nature. We…

Statistical Finance · Quantitative Finance 2019-07-08 Alexander Haluszczynski , Ingo Laut , Heike Modest , Christoph Räth

We study the time dependence of maximal spanning trees and asset graphs based on correlation matrices of stock returns. In these networks the nodes represent companies and links are related to the correlation coefficients between them.…

Physics and Society · Physics 2009-11-13 Tapio Heimo , Kimmo Kaski , Jari Saramaki

This paper posits the decline in market capitalization following a monopoly breakup serves as a means to gauge how financial markets assess market power. Our research, which employs univariate structural time series models to estimate the…

General Finance · Quantitative Finance 2024-07-16 Fausto Hernández Trillo , C. Vladimir Rodríguez-Caballero , Daniel Ventosa-Santaulària

Stock networks, constructed from stock price time series, are a well-established tool for the characterization of complex behavior in stock markets. Following Mantegna's seminal paper, the linear Pearson's correlation coefficient between…

Statistical Finance · Quantitative Finance 2018-06-27 David Hartman , Jaroslav Hlinka

We investigate the daily correlation present among market indices of stock exchanges located all over the world in the time period Jan 1996 - Jul 2009. We discover that the correlation among market indices presents both a fast and a slow…

Statistical Finance · Quantitative Finance 2011-08-16 Dong-Ming Song , Michele Tumminello , Wei-Xing Zhou , Rosario N. Mantegna

A financial system contains many elements networked by their relationships. Extensive works show that topological structure of the network stores rich information on evolutionary behaviors of the system such as early warning signals of…

Statistical Finance · Quantitative Finance 2018-05-09 Li Zhou , Lu Qiu , Changgui Gu , Huijie Yang

The study of the interplay between the structure and dynamics of complex multilevel systems is a pressing challenge nowadays. In this paper, we use a semi-annealed approximation to study the stability properties of Random Boolean Networks…

Physics and Society · Physics 2012-10-31 Emanuele Cozzo , Alex Arenas , Yamir Moreno

In this paper, we explore the detection of clusters of stocks that are in synergy in the Indian Stock Market and understand their behaviour in different circumstances. We have based our study on high frequency data for the year 2014. This…

Statistical Finance · Quantitative Finance 2019-03-11 Charu Sharma , Amber Habib

An empirical study of joint bivariate probability distribution of two consecutive price increments for a set of stocks at time scales ranging from one minute to thirty minutes reveals asymmetric structures with respect to the axes y=0, y=x,…

Physics and Society · Physics 2008-12-02 Andrei Leonidov , Vladimir Trainin , Alexander Zaitsev , Sergey Zaitsev

The understanding of complex social or economic systems is an important scientific challenge. Here we present a comprehensive study of the Spanish Stock Exchange showing that most financial firms trading in that market are characterized by…

Statistical Finance · Quantitative Finance 2009-11-13 Fabrizio Lillo , Esteban Moro , Gabriella Vaglica , Rosario N. Mantegna

We use rank correlations as distance functions to establish the interconnectivity between stock returns, building weighted signed networks for the stocks of seven European countries, the US and Japan. We establish the theoretical…

Statistical Finance · Quantitative Finance 2021-04-14 E. Ferreira , S. Orbe , J. Ascorbebeitia , B. Álvarez Pereira , E. Estrada

In a recent paper, it has been suggested that the controllability of a diffusively coupled complex network, subject to localized feedback loops at some of its vertices, can be assessed by means of a Master Stability Function approach, where…

Disordered Systems and Neural Networks · Physics 2007-08-09 Francesco Sorrentino

By using Random Matrix Theory, we build covariance matrices between stocks of the BM&F-Bovespa (Bolsa de Valores, Mercadorias e Futuros de S\~ao Paulo) which are cleaned of some of the noise due to the complex interactions between the many…

Portfolio Management · Quantitative Finance 2014-08-11 Leonidas Sandoval Junior , Adriana Bruscato , Maria Kelly Venezuela

The complexity of financial markets arise from the strategic interactions among agents trading stocks, which manifest in the form of vibrant correlation patterns among stock prices. Over the past few decades, complex financial markets have…

Statistical Finance · Quantitative Finance 2021-02-02 Areejit Samal , Hirdesh K. Pharasi , Sarath Jyotsna Ramaia , Harish Kannan , Emil Saucan , Jürgen Jost , Anirban Chakraborti

The availability of cellphone geolocation data provides a remarkable opportunity to study human mobility patterns and how these patterns are affected by the recent pandemic. Two simple centrality metrics allow us to measure two different…

Social and Information Networks · Computer Science 2022-08-16 Oscar Fontanelli , Dulce I. Valdivia , Guillermo Romero , Oliver Medina , Wentian Li , Maribel Hernández-Rosales

This paper studies the network structure and fragmentation of the Argentinean interbank market. Both the unsecured (CALL) and the secured (REPO) markets are examined, applying complex network analysis. Results indicate that, although the…

Physics and Society · Physics 2022-08-25 Federico Forte , Pedro Elosegui , Gabriel Montes-Rojas

We investigate hierarchical structure in various complex systems according to Minimum Spanning Tree methods. Firstly, we investigate stock markets where the graphis obtained from the matrix of correlations coefficient computed between all…

General Finance · Quantitative Finance 2014-06-13 Andrzej Jarynowski , Andrzej Buda

The vast majority of market impact studies assess each product individually, and the interactions between the different order flows are disregarded. This strong approximation may lead to an underestimation of trading costs and possible…

Trading and Market Microstructure · Quantitative Finance 2017-03-08 Michael Benzaquen , Iacopo Mastromatteo , Zoltan Eisler , Jean-Philippe Bouchaud

Financial empirical correlation matrices of all the companies which both, the Deutsche Aktienindex (DAX) and the Dow Jones comprised during the time period 1990-1999 are studied using a time window of a limited, either 30 or 60, number of…

Statistical Mechanics · Physics 2008-12-02 S. Drozdz , F. Gruemmer , F. Ruf , J. Speth

We present here a topological characterization of the minimal spanning tree that can be obtained by considering the price return correlations of stocks traded in a financial market. We compare the minimal spanning tree obtained from a large…

Statistical Mechanics · Physics 2009-11-07 Giovanni Bonanno , Guido Caldarelli , Fabrizio Lillo , and Rosario N. Mantegna