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The global balance is a well-known indicator of the behavior of a signed network. Recent literature has introduced the concept of local balance as a measure of the contribution of a single node to the overall balance of the network. In the…

Portfolio Management · Quantitative Finance 2025-12-12 Paolo Bartesaghi , Rosanna Grassi , Pierpaolo Uberti

We propose a method of analyzing multivariate time series data that investigates lead-lag relationships among economic indicators during the COVID-19 era with a weighted directed network of lagged variables. The analysis includes a stock…

Social and Information Networks · Computer Science 2024-06-03 Amanda Goodrick , Hiroki Sayama

Statistical physics of complex systems exploits network theory not only to model, but also to effectively extract information from many dynamical real-world systems. A pivotal case of study is given by financial systems: market prediction…

Risk Management · Quantitative Finance 2017-10-31 Matteo Serafino , Andrea Gabrielli , Guido Caldarelli , Giulio Cimini

Based on the daily data of American and Chinese stock markets, the dynamic behavior of a financial network with static and dynamic thresholds is investigated. Compared with the static threshold, the dynamic threshold suppresses the large…

Statistical Finance · Quantitative Finance 2015-05-18 Tian Qiu , Bo Zheng , Guang Chen

Financial networks have become extremely useful in characterizing the structure of complex financial systems. Meanwhile, the time evolution property of the stock markets can be described by temporal networks. We utilize the temporal network…

Statistical Finance · Quantitative Finance 2018-07-04 Longfeng Zhao , Gang-Jin Wang , Mingang Wang , Weiqi Bao , Wei Li , H. Eugene Stanley

The credit crisis roiling the world's financial markets will likely take years and entire careers to fully understand and analyze. A short empirical investigation of the current trends, however, demonstrates that the losses in certain…

Statistical Finance · Quantitative Finance 2015-05-13 Reginald D. Smith

The global financial crisis in 2007-2009 demonstrated that systemic risk can spread all over the world through a complex web of financial linkages, yet we still lack fundamental knowledge about the evolution of the financial web. In…

Statistical Finance · Quantitative Finance 2018-06-11 Teruyoshi Kobayashi , Taro Takaguchi

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

To monitor risk in temporal financial networks, we need to understand how individual behaviours affect the global evolution of networks. Here we define a structural importance metric - which we denote as $l_e$ - for the edges of a network.…

Computational Engineering, Finance, and Science · Computer Science 2020-12-24 Isobel Seabrook , Paolo Barucca , Fabio Caccioli

In the aftermath of the financial crisis, the growing literature on financial networks has widely documented the predictive power of topological characteristics (e.g. degree centrality measures) to explain the systemic impact or systemic…

General Finance · Quantitative Finance 2021-10-27 Yérali Gandica , Sophie Béreau , Jean-Yves Gnabo

We provide a framework for detecting relevant insurance companies in a systemic risk perspective. Among the alternative methodologies for measuring systemic risk, we propose a complex network approach where insurers are linked to form a…

Risk Management · Quantitative Finance 2020-11-24 Gian Paolo Clemente , Alessandra Cornaro

Edges in a network can be divided into two kinds according to their different roles: some enhance the locality like the ones inside a cluster while others contribute to the global connectivity like the ones connecting two clusters. A recent…

Physics and Society · Physics 2015-03-17 Xue-Qi Cheng , Fu-Xin Ren , Hua-Wei Shen , Zi-Ke Zhang , Tao Zhou

We use techniques from network science to study correlations in the foreign exchange (FX) market over the period 1991--2008. We consider an FX market network in which each node represents an exchange rate and each weighted edge represents a…

Trading and Market Microstructure · Quantitative Finance 2010-04-13 Daniel J. Fenn , Mason A. Porter , Peter J. Mucha , Mark McDonald , Stacy Williams , Neil F. Johnson , Nick S. Jones

Motivated by empirical observations on the interplay of trends and reversion, a lattice gas model of financial markets is presented. The shares of an asset are modeled by gas molecules that are distributed across a hidden social network of…

Statistical Finance · Quantitative Finance 2022-03-02 Christof Schmidhuber

We propose here a multiplex network approach to investigate simultaneously different types of dependency in complex data sets. In particular, we consider multiplex networks made of four layers corresponding respectively to linear,…

Physics and Society · Physics 2016-06-16 Nicoló Musmeci , Vincenzo Nicosia , Tomaso Aste , Tiziana Di Matteo , Vito Latora

In this paper, we propose a dynamical model to capture cascading failures among interconnected organizations in the global financial system. Failures can take the form of bankruptcies, defaults, and other insolvencies. The network that…

Optimization and Control · Mathematics 2023-11-13 Leonardo Stella , Dario Bauso , Franco Blanchini , Patrizio Colaneri

We study the cluster dynamics of multichannel (multivariate) time series by representing their correlations as time-dependent networks and investigating the evolution of network communities. We employ a node-centric approach that allows us…

Physics and Society · Physics 2015-05-13 Daniel J. Fenn , Mason A. Porter , Mark McDonald , Stacy Williams , Neil F. Johnson , Nick S. Jones

Drawing on recent contributions inferring financial interconnectedness from market data, our paper provides new insights on the evolution of the US financial industry over a long period of time by using several tools coming from network…

Physics and Society · Physics 2018-07-04 Yérali Gandica , Marco Valerio Geraci , Sophie Béreau , Jean-Yves Gnabo

This paper identifies the cryptocurrency market crashes and analyses its dynamics using the complex network. We identify three distinct crashes during 2017-20, and the analysis is carried out by dividing the time series into pre-crash,…

Statistical Finance · Quantitative Finance 2024-05-10 Kundan Mukhia , Anish Rai , SR Luwang , Md Nurujjaman , Sushovan Majhi , Chittaranjan Hens

Financial global crisis has devastating impacts to economies since early XX century and continues to impose increasing collateral damages for governments, enterprises, and society in general. Up to now, all efforts to obtain efficient…

Statistical Finance · Quantitative Finance 2019-04-09 Bruna Amin Gonçalves , Laura Carpi , Osvaldo A. Rosso , Martin G. Ravetti , A. P. F Atman