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As global financial markets become increasingly interconnected, financial contagion has developed into a major influencer of asset price dynamics. Motivated by this context, our study explores financial contagion both within and between…

Physics and Society · Physics 2026-01-09 An Pham Ngoc Nguyen , Marija Bezbradica , Martin Crane

Since its conception, the cryptocurrency market has been frequently described as an immature market, characterized by significant swings in volatility and occasionally described as lacking rhyme or reason. There has been great speculation…

Statistical Finance · Quantitative Finance 2023-06-14 Nick James , Max Menzies

Cryptocurrencies have become a popular and widely researched topic of interest in recent years for investors and scholars. In order to make informed investment decisions, it is essential to comprehend the factors that impact cryptocurrency…

Statistical Finance · Quantitative Finance 2023-08-21 Abdulrezzak Zekiye , Semih Utku , Fadi Amroush , Oznur Ozkasap

This paper is the first of a series of short articles that explore the efficiency of major cryptocurrency markets. A number of statistical tests and properties of statistical distributions will be used to assess if cryptocurrency markets…

Statistical Finance · Quantitative Finance 2020-04-01 Eugene Tartakovsky , Ksenia Plesovskikh , Anastasiia Sarmakeeva , Alexander Bibik

A fundamental problem in network analysis is clustering the nodes into groups which share a similar connectivity pattern. Existing algorithms for community detection assume the knowledge of the number of clusters or estimate it a priori…

Methodology · Statistics 2018-03-30 Junxian Geng , Anirban Bhattacharya , Debdeep Pati

In recent years, the tendency of the number of financial institutions including cryptocurrencies in their portfolios has accelerated. Cryptocurrencies are the first pure digital assets to be included by asset managers. Although they have…

Trading and Market Microstructure · Quantitative Finance 2022-01-31 Fan Fang , Carmine Ventre , Michail Basios , Leslie Kanthan , Lingbo Li , David Martinez-Regoband , Fan Wu

We analyze cross-correlations between price fluctuations of different stocks using methods of random matrix theory (RMT). Using two large databases, we calculate cross-correlation matrices C of returns constructed from (i) 30-min returns of…

Statistical Mechanics · Physics 2009-11-07 V. Plerou , P. Gopikrishnan , B. Rosenow , L. A. N. Amaral , T. Guhr , H. E. Stanley

Community detection is a key aspect of network analysis, as it allows for the identification of groups and patterns within a network. With the ever-increasing size of networks, it is crucial to have fast algorithms to analyze them…

Social and Information Networks · Computer Science 2023-01-31 Subhajit Sahu

Cryptocurrencies have become very popular in recent years. Thousands of new cryptocurrencies have emerged, proposing new and novel techniques that improve on Bitcoin's core innovation of the blockchain data structure and consensus…

Cryptography and Security · Computer Science 2020-10-29 Qingze Hum , Wei Jin Tan , Shi Ying Tey , Latasha Lenus , Ivan Homoliak , Yun Lin , Jun Sun

In this work, we consider community detection in blockchain networks. We specifically take the Bitcoin network and Ethereum network as two examples, where community detection serves in different ways. For the Bitcoin network, we modify the…

Social and Information Networks · Computer Science 2021-01-19 Sissi Xiaoxiao Wu , Zixian Wu , Shihui Chen , Gangqiang Li , Shengli Zhang

This paper evaluates and assesses the risk associated with capital allocation in cryptocurrencies (CCs). In this regard, we take a basket of 27 CCs and the CC index EWCI$^-$ into account. After considering a series of statistical tests we…

Risk Management · Quantitative Finance 2021-05-27 Christoph J. Börner , Ingo Hoffmann , Jonas Krettek , Lars M. Kürzinger , Tim Schmitz

This study attempts to analyze patterns in cryptocurrency markets using a special type of deep neural networks, namely a convolutional autoencoder. The method extracts the dominant features of market behavior and classifies the 40 studied…

Machine Learning · Computer Science 2019-10-29 Vladimir Puzyrev

Community detection has attracted increasing attention during the past decade, and many algorithms have been proposed to find the underlying community structure in a given network. Many of these algorithms are based on modularity…

Optimization and Control · Mathematics 2015-01-27 Necdet Serhat Aybat , Sahar Zarmehri , Soundar Kumara

In network research, Community Detection has always been a topic of significant interest in network science, with numerous papers and algorithms proposing to uncover the underlying structures within networks. In this paper, we conduct a…

Social and Information Networks · Computer Science 2025-02-10 Yash Malode , Amit Aylani , Arvind Bhardwaj , Deepak Hajoary

We study the problem of predicting whether the price of the 21 most popular cryptocurrencies (according to coinmarketcap.com) will go up or down on day d, using data up to day d-1. Our C2P2 algorithm is the first algorithm to consider the…

Machine Learning · Computer Science 2019-06-04 Chongyang Bai , Tommy White , Linda Xiao , V. S. Subrahmanian , Ziheng Zhou

Covariance matrices estimated from short, noisy, and non-Gaussian financial time series are notoriously unstable. Empirical evidence suggests that such covariance structures often exhibit power-law scaling, reflecting complex, hierarchical…

Computational Finance · Quantitative Finance 2026-01-13 Andres Garcia-Medina

We analyze the time series of four major cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Ripple) before the digital market crash at the end of 2017 - beginning 2018. We introduce a methodology that combines topological data analysis with…

Mathematical Finance · Quantitative Finance 2018-09-05 Marian Gidea , Daniel Goldsmith , Yuri Katz , Pablo Roldan , Yonah Shmalo

Cryptocoins (i.e., Bitcoin, Ether, Litecoin) are tradable digital assets. Ownerships of cryptocoins are registered on distributed ledgers (i.e., blockchains). Secure encryption techniques guarantee the security of the transactions…

Computational Engineering, Finance, and Science · Computer Science 2024-09-06 Pasquale De Rosa , Pascal Felber , Valerio Schiavoni

In recent years, cryptocurrencies have gone from an obscure niche to a prominent place, with investment in these assets becoming increasingly popular. However, cryptocurrencies carry a high risk due to their high volatility. In this paper,…

Portfolio Management · Quantitative Finance 2021-09-02 Natalia A. Van Heerden , Juan B. Cabral , Nadia Luczywo

The efficient market hypothesis has far-reaching implications for financial trading and market stability. Whether or not cryptocurrencies are informationally efficient has therefore been the subject of intense recent investigation. Here, we…

Statistical Finance · Quantitative Finance 2019-02-06 Higor Y. D. Sigaki , Matjaz Perc , Haroldo V. Ribeiro