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The stock market is a crucial component of the financial system, but predicting the movement of stock prices is challenging due to the dynamic and intricate relations arising from various aspects such as economic indicators, financial…

Statistical Finance · Quantitative Finance 2024-02-13 Hao Qian , Hongting Zhou , Qian Zhao , Hao Chen , Hongxiang Yao , Jingwei Wang , Ziqi Liu , Fei Yu , Zhiqiang Zhang , Jun Zhou

A stock market is considered as one of the highly complex systems, which consists of many components whose prices move up and down without having a clear pattern. The complex nature of a stock market challenges us on making a reliable…

Social and Information Networks · Computer Science 2019-09-27 Minjun Kim , Hiroki Sayama

This paper investigates the dynamics of in the S&P500 index from daily returns for the last 30 years. Using a stochastic geometry technique, each S&P500 yearly batch of data is embedded in a subspace that can be accurately described by a…

Statistical Mechanics · Physics 2016-08-16 Tanya Araújo , Francisco Louçã

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

In this paper we apply a specific type ANNs - convolutional neural networks (CNNs) - to the problem of finding start and endpoints of trends, which are the optimal points for entering and leaving the market. We aim to explore long-term…

Statistical Finance · Quantitative Finance 2021-04-30 Ekaterina Zolotareva

A classification of companies into sectors of the economy is important for macroeconomic analysis and for investments into the sector-specific financial indices and exchange traded funds (ETFs). Major industrial classification systems and…

Statistical Finance · Quantitative Finance 2018-01-19 Lorien X. Hayden , Ricky Chachra , Alexander A. Alemi , Paul H. Ginsparg , James P. Sethna

We attempt to explain stock market dynamics in terms of the interaction among three variables: market price, investor opinion and information flow. We propose a framework for such interaction and apply it to build a model of stock market…

General Finance · Quantitative Finance 2014-09-23 Maxim Gusev , Dimitri Kroujiline , Boris Govorkov , Sergey V. Sharov , Dmitry Ushanov , Maxim Zhilyaev

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 prediction of a stock price has always been a challenging issue, as its volatility can be affected by many factors such as national policies, company financial reports, industry performance, and investor sentiment etc.. In this paper,…

General Finance · Quantitative Finance 2020-09-08 Qiao Zhou , Ningning Liu

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

In setting up a stochastic description of the time evolution of a financial index, the challenge consists in devising a model compatible with all stylized facts emerging from the analysis of financial time series and providing a reliable…

Statistical Finance · Quantitative Finance 2009-11-13 Fulvio Baldovin , Attilio L. Stella

Summarized by the efficient market hypothesis, the idea that stock prices fully reflect all available information is always confronted with the behavior of real-world markets. While there is plenty of evidence indicating and quantifying the…

Physics and Society · Physics 2020-12-16 Luiz G. A. Alves , Higor Y. D. Sigaki , Matjaz Perc , Haroldo V. Ribeiro

Almost all real-world networks are subject to constant evolution, and plenty of evolving networks have been investigated to uncover the underlying mechanisms for a deeper understanding of the organization and development of them. Compared…

Social and Information Networks · Computer Science 2016-10-12 Tao Wu , Leiting Chen

Using data from 92 indices of stock exchanges worldwide, I analize the cluster formation and evolution from 2007 to 2010, which includes the Subprime Mortgage Crisis of 2008, using asset graphs based on distance thresholds. I also study the…

Statistical Finance · Quantitative Finance 2012-01-24 Leonidas Sandoval Junior

We investigate the planar maximally filtered graphs of the portfolio of the 300 most capitalized stocks traded at the New York Stock Exchange during the time period 2001-2003. Topological properties such as the average length of shortest…

Physics and Society · Physics 2008-12-02 M. Tumminello , T. Di Matteo , T. Aste , R. N. Mantegna

We study the temporal evolution of the market efficiency in the stock markets using the complexity, entropy density, standard deviation, autocorrelation function, and probability distribution of the log return for Standard and Poor's 500…

Physics and Society · Physics 2008-12-02 Jae-Suk Yang , Wooseop Kwak , Taisei Kaizoji , In-mook Kim

Development of stock networks is an important approach to explore the relationship between different stocks in the era of big-data. Although a number of methods have been designed to construct the stock correlation networks, it is still a…

Statistical Finance · Quantitative Finance 2019-06-25 Xue Guo , Hu Zhang , Tianhai Tian

The interactive effect is significant in the Chinese stock market, exacerbating the abnormal market volatilities and risk contagion. Based on daily stock returns in the Shanghai Stock Exchange (SSE) A-shares, this paper divides the period…

Econometrics · Economics 2024-04-04 Muzi Chen , Yuhang Wang , Boyao Wu , Difang Huang

The market weight of a stock is its capitalization (cap) divided by the total market cap. Rank these weights from top to bottom. The capital distribution curve is a plot of weights versus ranks. For the US stock market, it is linear on a…

Probability · Mathematics 2019-07-23 Clayton Barnes , Andrey Sarantsev

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