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We develop an entropic framework to model the dynamics of stocks and European Options. Entropic inference is an inductive inference framework equipped with proper tools to handle situations where incomplete information is available. The…

Pricing of Securities · Quantitative Finance 2019-08-20 Mohammad Abedi , Daniel Bartolomeo

In Statistical Mechanics, Tsallis distributions were apparently conceived in connection with systems presenting long--range interactions. In fact, they were observed in numerical computations for models of such a type, as occurring in the…

Statistical Mechanics · Physics 2020-04-22 Andrea Carati , Luigi Galgani , Fabrizio Gangemi , Roberto Gangemi

The stock market's reaction to the external risk shock is closely related to the cross-shareholding network structure. This paper takes the public information of listed companies in the A-share securities market as the primary sample to…

General Economics · Economics 2022-12-06 Yujue Wang

Multivariate Distributions are needed to capture the correlation structure of complex systems. In previous works, we developed a Random Matrix Model for such correlated multivariate joint probability density functions that accounts for the…

Statistical Finance · Quantitative Finance 2025-12-02 Anton J. Heckens , Efstratios Manolakis , Cedric Schuhmann , Thomas Guhr

The property of Tsallis entropy is examined when considering tow systems with different temperatures to be in contact with each other and to reach the thermal equilibrium. It is verified that the total Tsallis entropy of the two systems…

Statistical Mechanics · Physics 2015-08-10 Jiulin Du

We present a very simple method for the calculation of Shannon, Fisher, Onicescu and Tsallis entropies in atoms, as well as SDL and LMC complexity measures, as functions of the atomic number Z. Fractional occupation probabilities of…

Quantum Physics · Physics 2015-05-13 C. P. Panos , N. S. Nikolaidis , K. Ch. Chatzisavvas , C. C. Tsouros

Grasping the historical volatility of stock market indices and accurately estimating are two of the major focuses of those involved in the financial securities industry and derivative instruments pricing. This paper presents the results of…

Mathematical Finance · Quantitative Finance 2022-05-04 Claudiu Vinte , Marcel Ausloos , Titus Felix Furtuna

Tsallis' non-extensive statistical mechanics is claimed to be the correct tool to describe the behaviour of low-dimensional dissipative maps at the edge of chaos. Indeed, many different approaches confirm that, for those systems, the…

Statistical Mechanics · Physics 2007-05-23 F. Sattin

We investigate the scaling of Tsallis entropy in disordered quantum spin-S chains. We show that an extensive scaling occurs for specific values of the entropic index. Those values depend only on the magnitude S of the spins, being directly…

Quantum Physics · Physics 2015-05-14 A. Saguia , M. S. Sarandy

While market is a social field where information flows over the interacting agents, there have been not so many methods to observe the spreading information in the prices comprising the market. By incorporating the entropy transfer in…

Statistical Finance · Quantitative Finance 2015-10-19 Hokky Situngkir

We show that the mutually exclusive nature of classical and quantum correlations distributed in multi-party quantum systems can be characterized in terms of $q$-expectation. Using Tsallis-$q$ entropy and $q$-expectation, we first provide…

Quantum Physics · Physics 2019-09-25 Jeong San Kim

We revisit the issues on the thermodynamic property of stellar self-gravitating system arising from Tsallis' non-extensive entropy. Previous papers (Taruya & Sakagami, Physica A 307 (2002) 185 (cond-mat/0107494); ibid. (2002) in press…

Statistical Mechanics · Physics 2009-11-07 Atsushi Taruya , Masa-aki Sakagami

It is pointed out that the Tsallis entropy functional represented in terms of the escort distribution is not concave of the entropic index $q$ is less than unity. It is emphasized that the escort distribution is a secondary object…

Statistical Mechanics · Physics 2009-10-31 Sumiyoshi Abe

Over the past decade alternatives to traditional insurance and banking have grown in popularity. The desire to encourage local participation has lead products such as peer-to-peer insurance, reciprocal contracts, and decentralized finance…

Theoretical Economics · Economics 2025-09-29 Arthur Charpentier , Philipp Ratz

Network architecture design is very important for the optimization of industrial networks. The type of network architecture can be divided into small-scale network and large-scale network according to its scale. Graph theory is an efficient…

Social and Information Networks · Computer Science 2022-09-20 Chao Dong , Xiaoxiong Xiong , Qiulin Xue , Zhengzhen Zhang , Kai Niu , Ping Zhang

Dependence strucuture estimation is one of the important problems in machine learning domain and has many applications in different scientific areas. In this paper, a theoretical framework for such estimation based on copula and copula…

Machine Learning · Computer Science 2019-09-11 Jian Ma , Zengqi Sun

The theory of multilayer networks is in its early stages, and its development provides vital methods for understanding complex systems. Multilayer networks, in their multiplex form, have been introduced within the last three years to…

Computational Finance · Quantitative Finance 2017-04-04 Antoaneta Serguieva

Stochastic blockmodels are generative network models where the vertices are separated into discrete groups, and the probability of an edge existing between two vertices is determined solely by their group membership. In this paper, we…

Statistical Mechanics · Physics 2013-11-12 Tiago P. Peixoto

In practice, many empirical networks, including co-authorship and collocation networks are unimodal projections of a bipartite data structure where one layer represents entities, the second layer consists of a number of sets representing…

Physics and Society · Physics 2016-07-07 Navid Dianati

Quantum entropy and skew information play important roles in quantum information science. They are defined by the trace of the positive operators so that the trace inequalities often have important roles to develop the mathematical theory…

Functional Analysis · Mathematics 2010-08-23 Shigeru Furuichi