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We take a look the changes of different asset prices over variable periods, using both traditional and spectral methods, and discover universality phenomena which hold (in some cases) across asset classes.

Mathematical Finance · Quantitative Finance 2018-03-21 Igor Rivin

In order to understand the origin of stock price jumps, we cross-correlate high-frequency time series of stock returns with different news feeds. We find that neither idiosyncratic news nor market wide news can explain the frequency and…

Statistical Finance · Quantitative Finance 2008-12-02 Armand Joulin , Augustin Lefevre , Daniel Grunberg , Jean-Philippe Bouchaud

Evidence is offered for log-periodic (in time) fluctuations in the S&P 500 stock index during the three years prior to the October 27, 1997 "correction". These fluctuations were expected on the basis of a discretely scale invariant rupture…

Condensed Matter · Physics 2015-06-25 James A. Feigenbaum , Peter G. O. Freund

We select the $n$ stocks traded in the New York Stock Exchange and we form a statistical ensemble of daily stock returns for each of the $k$ trading days of our database from the stock price time series. We study the ensemble return…

Statistical Mechanics · Physics 2009-10-31 Fabrizio Lillo , Rosario N. Mantegna

Using Trades and Quotes data from the Paris stock market, we show that the random walk nature of traded prices results from a very delicate interplay between two opposite tendencies: long-range correlated market orders that lead to…

Statistical Mechanics · Physics 2008-12-02 Jean-Philippe Bouchaud , Yuval Gefen , Marc Potters , Matthieu Wyart

Stock prices often react sluggishly to news, producing gradual jumps and jump delays. Econometricians typically treat these sluggish reactions as microstructure effects and settle for a coarse sampling grid to guard against them.…

Econometrics · Economics 2023-09-28 Nabil Bouamara , Kris Boudt , Sébastien Laurent , Christopher J. Neely

While attention is a predictor for digital asset prices, and jumps in Bitcoin prices are well-known, we know little about its alternatives. Studying high frequency crypto data gives us the unique possibility to confirm that cross market…

Trading and Market Microstructure · Quantitative Finance 2021-10-19 Danial Saef , Odett Nagy , Sergej Sizov , Wolfgang Karl Härdle

Using a rolling windows analysis of filtered and aligned stock index returns from 40 countries during the period 2006-2014, we construct Granger causality networks and investigate the ensuing structure of the relationships by studying…

Economics · Quantitative Finance 2015-11-05 Stefan Lyocsa , Tomas Vyrost , Eduard Baumohl

This review is a partial synthesis of the book ``Why stock market crash'' (Princeton University Press, January 2003), which presents a general theory of financial crashes and of stock market instabilities that his co-workers and the author…

Statistical Mechanics · Physics 2009-11-10 D. Sornette

There are some statistical anomalies in the Chinese stock market, i.e., positive return skewness, anti-leverage effect (positive returns induce higher volatility than negative returns); and reverse volatility asymmetry (contemporaneous…

General Finance · Quantitative Finance 2015-11-06 Liang Wu , Jingyi Luo , Yingkai Tang , Gregory Bardes

We develop a theoretical trading conditioning model subject to price volatility and return information in terms of market psychological behavior, based on analytical transaction volume-price probability wave distributions in which we use…

Trading and Market Microstructure · Quantitative Finance 2010-02-09 Leilei Shi , Yiwen Wang , Ding Chen , Liyan Han , Yan Piao , Chengling Gou

We review the evidence that the erratic dynamics of markets is to a large extent of endogenous origin, i.e. determined by the trading activity itself and not due to the rational processing of exogenous news. In order to understand why and…

Statistical Finance · Quantitative Finance 2010-09-16 Jean-Philippe Bouchaud

On the fifth of February, 2018, the Dow Jones Industrial Average dropped 1,175.21 points, the largest single-day fall in history in raw point terms. This followed a 666-point loss on the second, and another drop of over a thousand points…

Statistical Finance · Quantitative Finance 2018-06-05 Blake C. Stacey , Yaneer Bar-Yam

It is widely accepted that there is strong persistence in the volatility of financial time series. The origin of the observed persistence, or long-range memory, is still an open problem as the observed phenomenon could be a spurious effect.…

Statistical Finance · Quantitative Finance 2018-04-24 Vygintas Gontis , Aleksejus Kononovicius

In this paper we provide compelling evidence of cyclical mean reversion and multiperiod stock return predictability over horizons of about 30 years with a half-life of about 15 years. This implies that the US stock market follows a…

General Finance · Quantitative Finance 2013-02-01 Valeriy Zakamulin

This article reviews the main contributions to the anomalous Hall effect and its resurgence in the past three decades, which has been accompanied by the rise of topological phenomena and topological materials. I will show that the anomalous…

Mesoscale and Nanoscale Physics · Physics 2022-09-20 Dimitrie Culcer

We first review empirical evidence that asset prices have had episodes of large fluctuations and been inefficient for at least 200 years. We briefly review recent theoretical results as well as the neurological basis of trend following and…

General Finance · Quantitative Finance 2016-05-04 Jean-Philippe Bouchaud , Damien Challet

Several works have observed heavy-tailed behavior in the distributions of returns in different markets, which are observable indicators of underlying complex dynamics. Such prior works study return distributions that are marginalized across…

Statistical Mechanics · Physics 2024-01-11 Hideyuki Miyahara , Hai Qian , Pavan Holur , Vwani Roychowdhury

One of the principal statistical features characterizing the activity in financial markets is the distribution of fluctuations in market indicators such as the index. While the developed stock markets, e.g., the New York Stock Exchange…

Physics and Society · Physics 2008-12-02 Raj Kumar Pan , Sitabhra Sinha

We studied non-dynamical stochastic resonance for the number of trades in the stock market. The trade arrival rate presents a deterministic pattern that can be modeled by a cosine function perturbed by noise. Due to the nonlinear…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 A. Christian Silva , Ju-Yi J. Yen