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With a steadily growing population and rapid advancements in technology, the global economy is increasing in size and complexity. This growth exacerbates global vulnerabilities and may lead to unforeseen consequences such as global…

Social and Information Networks · Computer Science 2018-09-25 Xiang Niu , Alaa Moussawi , Gyorgy Korniss , Boleslaw K. Szymanski

Assessing the stability of economic systems is a fundamental research focus in economics, that has become increasingly interdisciplinary in the currently troubled economic situation. In particular, much attention has been devoted to the…

Risk Management · Quantitative Finance 2017-02-24 Matteo Serri , Guido Caldarelli , Giulio Cimini

Real world networks exhibit rich temporal information: friends are added and removed over time in online social networks; the seasons dictate the predator-prey relationship in food webs; and the propagation of a virus depends on the network…

We study the dynamic interactions and structural changes in global financial indices in the years 1998-2012. We apply a principal component analysis (PCA) to cross-correlation coefficients of the stock indices. We calculate the correlations…

Physics and Society · Physics 2016-02-17 Ashadun Nobi , Jae Woo Lee

Evaluation of systemic risk in networks of financial institutions in general requires information of inter-institution financial exposures. In the framework of Debt Rank algorithm, we introduce an approximate method of systemic risk…

Risk Management · Quantitative Finance 2021-04-14 Sebastian M. Krause , Hrvoje Štefančić , Vinko Zlatić , Guido Caldarelli

In this paper, we introduce an impact centrality measure to evaluate shock propagation on financial networks capturing a notion of contagion and systemic risk contributions, permitting comparisons of these risks over time. In addition, we…

Mathematical Finance · Quantitative Finance 2025-02-06 Agathe Sadeghi , Zachary Feinstein

There is great significance in evaluating a node's Influence ranking in complex networks. Over the years, many researchers have presented different measures for quantifying node interconnectedness within networks. Therefore, this paper…

Social and Information Networks · Computer Science 2024-08-05 Auwal Tijjani Amshi

We propose a new framework for measuring connectedness among financial variables that arises due to heterogeneous frequency responses to shocks. To estimate connectedness in short-, medium-, and long-term financial cycles, we introduce a…

Methodology · Statistics 2017-12-20 Jozef Barunik , Tomas Krehlik

In the age of globalization, it is natural that the stock market of each country is not independent form the other markets. In this case, collective behavior could be emerged form their dependency together. This article studies the…

Statistical Finance · Quantitative Finance 2017-03-28 M. Saeedian , T. Jamali , M. Z. Kamali , H. Bayani , T. Yasseri , G. R. Jafari

We develop a topology data analysis-based method to detect early signs for critical transitions in financial data. From the time-series of multiple stock prices, we build time-dependent correlation networks, which exhibit topological…

Mathematical Finance · Quantitative Finance 2017-01-24 Marian Gidea

A majority of real life networks are weighted and sparse. The present article aims at characterization of weighted networks based on sparsity, as a measure of inherent diversity, of different network parameters. It utilizes sparsity index…

Discrete Mathematics · Computer Science 2021-01-12 Swati Goswami , Asit K. Das , Subhas C. Nandy

We empirically analyze the reversion of financial market trends with time horizons ranging from minutes to decades. The analysis covers equities, interest rates, currencies and commodities and combines 14 years of futures tick data, 30…

Statistical Finance · Quantitative Finance 2025-06-02 Sara A. Safari , Christof Schmidhuber

The worldwide trade network has been widely studied through different data sets and network representations with a view to better understanding interactions among countries and products. Here we investigate international trade through the…

Physics and Society · Physics 2018-12-12 Luiz G. A. Alves , Giuseppe Mangioni , Francisco A. Rodrigues , Pietro Panzarasa , Yamir Moreno

The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis.…

General Finance · Quantitative Finance 2016-05-09 Andrea Flori , Giuseppe Pappalardo , Michelangelo Puliga , Alessandro Chessa , Fabio Pammolli

In this paper we provide a comprehensive analysis of a structural model for the dynamics of prices of assets traded in a market originally proposed in [1]. The model takes the form of an interacting generalization of the geometric Brownian…

Statistical Finance · Quantitative Finance 2018-06-06 Kartik Anand , Jonathan Khedair , Reimer Kuehn

In this research, we introduce a robust metric to identify Systemically Important Financial Institution (SIFI) in a financial network by taking into account both common idiosyncratic shocks and contagion through counterparty exposures. We…

Risk Management · Quantitative Finance 2017-02-23 Amirhossein Sadoghi

In the wake of the ongoing global financial crisis, interdependencies among banks have come into focus in trying to assess systemic risk. To date, such analysis has largely been based on numerical data. By contrast, this study attempts to…

Risk Management · Quantitative Finance 2013-06-26 Samuel Rönnqvist , Peter Sarlin

This paper introduces a global stock market volatility forecasting model that enhances forecasting accuracy and practical utility in real-world financial decision-making by integrating dynamic graph structures and encompassing all active…

General Finance · Quantitative Finance 2025-09-17 Zhengyang Chi , Junbin Gao , Chao Wang

The cross-correlation matrix of daily returns of stock market indices in a diverse set of 37 countries worldwide was analyzed. Comparison of the spectrum of this matrix with predictions of random matrix theory provides an empirical evidence…

Statistical Mechanics · Physics 2009-11-07 Sergei Maslov

Geometry-inspired measures (such as discrete Ricci curvatures) and topological data analysis (TDA) based methods (such as persistent homology) have become attractive tools for characterizing the higher-order structure of networks…