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More than one billion data sampled with different frequencies from several financial instruments were investigated with the aim of testing whether they involve power law. As a result, a known power law with the power exponent around -4 was…

Statistical Finance · Quantitative Finance 2020-10-06 Caglar Tuncay

In financial markets, not only prices and returns can be considered as random variables, but also the waiting time between two transactions varies randomly. In the following, we analyse the statistical properties of General Electric stock…

Statistical Mechanics · Physics 2009-11-07 M. Raberto , E. Scalas , F. Mainardi

Autoregressive conditional duration (ACD) models are primarily used to deal with data arising from times between two successive events. These models are usually specified in terms of a time-varying conditional mean or median duration. In…

Methodology · Statistics 2021-09-10 Helton Saulo , Narayanaswamy Balakrishnan , Roberto Vila

Commodity futures constitute an attractive asset class for portfolio managers. Propelled by their low correlation with other assets, commodities begin gaining popularity among investors, as they allow to capture diversification benefits.…

Statistical Finance · Quantitative Finance 2023-04-13 M. Belén Arouxet , Aurelio F. Bariviera , Verónica Pastor , Victoria Vampa

We study the stochastic structure of cryptocurrency rates of returns as compared to stock returns by focusing on the associated cross-sectional distributions. We build two datasets. The first comprises forty-six major cryptocurrencies, and…

Theoretical Economics · Economics 2023-10-10 Emanuele Citera , Francesco De Pretis

We study the daily trading volume volatility of 17,197 stocks in the U.S. stock markets during the period 1989--2008 and analyze the time return intervals $\tau$ between volume volatilities above a given threshold q. For different…

Trading and Market Microstructure · Quantitative Finance 2015-05-28 Wei Li , Fengzhong Wang , Shlomo Havlin , H. Eugene Stanley

The distribution of returns in financial time series exhibits heavy tails. In empirical studies, it has been found that gaps between the orders in the order book lead to large price shifts and thereby to these heavy tails. We set up an…

Trading and Market Microstructure · Quantitative Finance 2012-12-04 Thilo A. Schmitt , Rudi Schäfer , Michael C. Münnix , Thomas Guhr

This paper uses the concepts of entropy to study the regularity/irregularity of the returns from the Indian Foreign exchange (forex) markets. The Approximate Entropy and Sample Entropy statistics which measure the level of repeatability in…

Statistical Finance · Quantitative Finance 2023-08-09 Radhika Prosad Datta

Report presents analysis of empirical distribution of future returns of bitcoin (BTC) from BTUSD inverse option prices. Logistic pdf is chosen as underlying distribution to fit option prices. The result is satisfactory and suggests that…

Statistical Finance · Quantitative Finance 2019-01-16 Nikolai Zaitsev

The herd behavior of returns is investigated in Korean futures exchange market. It is obtained that the probability distribution of returns for three types of herding parameter scales as a power law $R^{-\beta}$ with the exponents $…

Statistical Mechanics · Physics 2008-12-02 Kyungsik Kim , Seong-Min Yoon , Yup Kim

The modelling of financial markets presents a problem which is both theoretically challenging and practically important. The theoretical aspects concern the issue of market efficiency which may even have political implications…

Statistical Mechanics · Physics 2016-08-31 Kirill N. Ilinski , Alexander S. Stepanenko

Using 1-min returns of Bitcoin prices, we investigate statistical properties and multifractality of a Bitcoin time series. We find that the 1-min return distribution is fat-tailed, and kurtosis largely deviates from the Gaussian…

Statistical Finance · Quantitative Finance 2018-05-29 Tetsuya Takaishi

The COVID-19 recession that started in March 2020 led to an unprecedented decline in economic activity across the globe. To fight this recession, policy makers in central banks engaged in expansionary monetary policy. This paper asks…

Econometrics · Economics 2020-07-31 Martin Feldkircher , Florian Huber , Michael Pfarrhofer

Fundamental variables in financial market are not only price and return but a very important role is also played by trading volumes. Here we propose a new multivariate model that takes into account price returns, logarithmic variation of…

Statistical Finance · Quantitative Finance 2020-07-14 Guglielmo D'Amico , Filippo Petroni

The observation of power laws in the time to extrema of volatility, volume and intertrade times, from milliseconds to years, are shown to result straightforwardly from the selection of biased statistical subsets of realizations in otherwise…

Statistical Finance · Quantitative Finance 2015-06-03 Vladimir Filimonov , Didier Sornette

We investigate the large-volatility dynamics in financial markets, based on the minute-to-minute and daily data of the Chinese Indices and German DAX. The dynamic relaxation both before and after large volatilities is characterized by a…

Statistical Finance · Quantitative Finance 2011-03-28 X. F. Jiang , B. Zheng , J. Shen

Based on the tick-by-tick stock prices from the German and American stock markets, we study the statistical properties of the distribution of the individual stocks and the index returns in highly collective and noisy intervals of trading,…

Soft Condensed Matter · Physics 2015-06-24 J. Kwapien , S. Drozdz , J. Speth

Explaining empirically observed wealth and income distributions, featuring power-law tails alongside gamma or log-normal bulk shapes, challenges models that focus on either pairwise competition or individual investment mechanisms. This…

Physics and Society · Physics 2025-05-19 Yuri Ono , Atsushi Ishida

In this paper we discuss the problem of the estimation of extreme event occurrence probability for data drawn from some multifractal process. We also study the heavy (power-law) tail behavior of probability density function associated with…

Statistical Mechanics · Physics 2009-11-11 Jean-Francois Muzy , Emmanuel Bacry , Alexey Kozhemyak

We present a symmetry analysis of the distribution of variations of different financial indices, by means of a statistical procedure developed by the authors based on a symmetry statistic by Einmahl and Mckeague. We applied this statistical…

Statistical Finance · Quantitative Finance 2022-01-17 C. M. Rodríguez-Martínez , H. F. Coronel-Brizio , A. R. Hernández-Montoya