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Entropy is a measure of heterogeneity widely used in applied sciences, often when data are collected over space. Recently, a number of approaches has been proposed to include spatial information in entropy. The aim of entropy is to…

Statistics Theory · Mathematics 2019-11-12 Linda Altieri , Daniela Cocchi , Giulia Roli

Financial market is an example of complex system, which is characterized by a highly intricate organization and the emergence of collective behavior. In this paper, we quantify this emergent dynamics in the financial market by using…

General Finance · Quantitative Finance 2011-09-07 Thomas Kauê Dal'Maso Peron , Francisco Aparecido Rodrigues

Learning time-evolving objects such as multivariate time series and dynamic networks requires the development of novel knowledge representation mechanisms and neural network architectures, which allow for capturing implicit time-dependent…

Machine Learning · Computer Science 2024-01-25 Baris Coskunuzer , Ignacio Segovia-Dominguez , Yuzhou Chen , Yulia R. Gel

Most of animal and human behavior occurs on time scales much longer than the response times of individual neurons. In many cases, it is plausible that these long time scales emerge from the recurrent dynamics of electrical activity in…

Biological Physics · Physics 2024-08-23 Xiaowen Chen , William Bialek

It is crucially important to estimate unknown parameters in earth system models by integrating observation and numerical simulation. For many applications in earth system sciences, an optimization method which allows parameters to…

Geophysics · Physics 2022-07-13 Yohei Sawada

In this paper we examine the importance of the choice of metric in path coupling, and the relationship of this to \emph{stopping time analysis}. We give strong evidence that stopping time analysis is no more powerful than standard path…

Probability · Mathematics 2007-05-23 Magnus Bordewich , Martin Dyer , Marek Karpinski

Recurrence plots provide a graphical representation of the recurrent patterns in a timeseries, the quantification of which is a relatively new field. Here we derive analytical expressions which relate the values of key statistics, notably…

Data Analysis, Statistics and Probability · Physics 2007-05-23 T. K. March , S. C. Chapman , R. O. Dendy

A central problem of Quantitative Finance is that of formulating a probabilistic model of the time evolution of asset prices allowing reliable predictions on their future volatility. As in several natural phenomena, the predictions of such…

Statistical Finance · Quantitative Finance 2012-09-25 Fulvio Baldovin , Dario Bovina , Francesco Camana , Attilio L. Stella

The presence of significant cross-correlations between the synchronous time evolution of a pair of equity returns is a well-known empirical fact. The Pearson correlation is commonly used to indicate the level of similarity in the price…

Statistical Finance · Quantitative Finance 2014-02-07 Dror Y. Kenett , Xuqing Huang , Irena Vodenska , Shlomo Havlin , H. Eugene Stanley

We conduct an empirical study using the quantile-based correlation function to uncover the temporal dependencies in financial time series. The study uses intraday data for the S\&P 500 stocks from the New York Stock Exchange. After…

General Finance · Quantitative Finance 2015-07-20 Thilo A. Schmitt , Rudi Schäfer , Holger Dette , Thomas Guhr

Mediation analyses are a statistical tool for testing the hypothesis about how the relationship between two variables may be direct or indirect via a third variable. Assessing statistical significance has been an area of active research;…

Methodology · Statistics 2021-06-07 Jason Steffener

We discuss several models in order to shed light on the origin of power-law distributions and power-law correlations in financial time series. From an empirical point of view, the exponents describing the tails of the price increments…

Condensed Matter · Physics 2007-05-23 Jean-Philippe Bouchaud

Complex systems are characterised by a tight, nontrivial interplay of their constituents, which gives rise to a multi-scale spectrum of emergent properties. In this scenario, it is practically and conceptually difficult to identify those…

Statistical Mechanics · Physics 2022-10-19 Roi Holtzman , Marco Giulini , Raffaello Potestio

We show that the scale dependence of the fluctuations of the natural time itself under time reversal provides a useful tool for the discrimination of seismic electric signals (critical dynamics) from noises emitted from man made sources as…

Statistical Mechanics · Physics 2009-11-13 P. A. Varotsos , N. V. Sarlis , E. S. Skordas , M. S. Lazaridou

Scale independence is a ubiquitous feature of complex systems which implies a highly skewed distribution of resources with no characteristic scale. Research has long focused on why systems as varied as protein networks, evolution and stock…

Physics and Society · Physics 2016-02-08 Laurent Hébert-Dufresne , Antoine Allard , Jean-Gabriel Young , Louis J. Dubé

Tasks that require information about the world imply a trade-off between the time spent on observation and the variance of the response. In particular, fast decisions need to rely on uncertain information. However, standard estimates of…

Neurons and Cognition · Quantitative Biology 2023-07-18 Sahel Azizpour , Viola Priesemann , Johannes Zierenberg , Anna Levina

Financial markets are often modelled as if time were unique and continuous across assets and markets. Financial markets are however asynchronous, order flow is event-driven, and waiting times between events are often random. Many of the…

Trading and Market Microstructure · Quantitative Finance 2026-04-29 Chris Angstmann , Tim Gebbie

Verifying entanglement with experimental measurements requires that we take the limitations of experimental techniques into account, while still proving that the data obtained could not have been generated from a classical source. In the…

This paper studies the links between the descriptions of macroeconomic variables and statistical moments of market trade, price, and return. The randomness of market trade values and volumes during the averaging interval {\Delta} results in…

General Economics · Economics 2024-04-22 Victor Olkhov

We study in this paper the time evolution of stock markets using a statistical physics approach. Each agent is represented by a spin having a number of discrete states $q$ or continuous states, describing the tendency of the agent for…

General Finance · Quantitative Finance 2021-02-09 Hung T. Diep , Gabriel Desgranges