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New entropy measures have been recently introduced for the quantification of the complexity of networks. Most of these entropy measures apply to static networks or to dynamical processes defined on static complex networks. In this paper we…

Disordered Systems and Neural Networks · Physics 2015-05-30 Kun Zhao , Arda Halu , Simone Severini , Ginestra Bianconi

A simple and elegant arrangement of stock components of a portfolio (market index-DJIA) in a recent paper [1], has led to the construction of crossing of stocks diagram. The crossing stocks method revealed hidden remarkable algebraic and…

Statistical Finance · Quantitative Finance 2014-06-12 Ovidiu Racorean

We introduce a new measure of interdependence among the components of a random vector along the main diagonal of the vector copula, i.e. along the line $u_{1}=\ldots=u_{J}$, for $\left(u_{1},\ldots,u_{J}\right)\in\left[0,1\right]^{J}$. Our…

Methodology · Statistics 2014-08-29 Jhan Rodríguez , András Bárdossy

The connection between network topology and stability remains unclear. General approaches that clarify this relationship and allow for more efficient stability analysis would be desirable. Inspired by chemical reaction networks, I…

Chaotic Dynamics · Physics 2013-09-27 Ali Kinkhabwala

A central task in analyzing complex dynamics is to determine the loci of information storage and the communication topology of information flows within a system. Over the last decade and a half, diagnostics for the latter have come to be…

Statistical Mechanics · Physics 2016-06-20 Ryan G. James , Nix Barnett , James P. Crutchfield

The price impact for a single trade is estimated by the immediate response on an event time scale, i.e., the immediate change of midpoint prices before and after a trade. We work out the price impacts across a correlated financial market.…

Trading and Market Microstructure · Quantitative Finance 2019-04-23 Shanshan Wang , Sebastian Neusüß , Thomas Guhr

We analyze the statistical dependency structure of the S&P 500 constituents in the 4-year period from 2007 to 2010 using intraday data from the New York Stock Exchange's TAQ database. With a copula-based approach, we find that the…

Statistical Finance · Quantitative Finance 2015-05-27 Michael C. Münnix , Rudi Schäfer

The classification of electron systems according to their topology has been at the forefront of condensed matter research in recent years. It has been found that systems of the same symmetry, previously thought of as equivalent, may in fact…

Strongly Correlated Electrons · Physics 2015-01-09 Jan Borchmann , Aaron Farrell , Shunji Matsuura , T. Pereg-Barnea

Recent crises have shown that the knowledge of the structure of input-output networks at the firm level is crucial when studying economic resilience from the microscopic point of view of firms that rewire their connections under supply and…

We analyze the network of relations between parliament members according to their voting behavior. In particular, we examine the emergent community structure with respect to political coalitions and government alliances. We rely on tools…

Physics and Society · Physics 2015-06-22 Carlo Dal Maso , Gabriele Pompa , Michelangelo Puliga , Gianni Riotta , Alessandro Chessa

Economic models with input-output networks assume that firm or sector (unit) growth is driven by a weighted sum of trade partners' growth and an independently-drawn idiosyncratic shock. I show that the idiosyncratic risk assumption in a…

General Economics · Economics 2022-08-03 Victor Sellemi

We prove that all R\'enyi entanglement entropies of spin-chains described by generic (gapped), translational invariant matrix product states (MPS) are extensive for disconnected sub-systems: All R\'enyi entanglement entropy densities of the…

Quantum Physics · Physics 2020-08-31 Alberto Rolandi , Henrik Wilming

In a stock market, the price fluctuations are interactive, that is, one listed company can influence others. In this paper, we seek to study the influence relationships among listed companies by constructing a directed network on the basis…

Physics and Society · Physics 2015-06-24 Ya-Chun Gao , Yong Zeng , Shi-Min Cai

Identifying future congestion points in electricity distribution networks is an important challenge distribution system operators face. A proven approach for addressing this challenge is to assess distribution grid adequacy using…

Systems and Control · Electrical Eng. & Systems 2022-07-12 Julian N. Betge , Barbera Droste , Jacco Heres , Simon H. Tindemans

This paper is part of the research on the interlinkages between insurers and their contribution to systemic risk on the insurance market. Its main purpose is to present the results of the analysis of linkage dynamics and systemic risk in…

Statistical Finance · Quantitative Finance 2019-08-23 Anna Denkowska , Stanisław Wanat

This work is an enquiry into the circumstances under which entropy methods can give an answer to the questions of both quantum separability and classical correlations of a composite state. Several entropy functionals are employed to examine…

Quantum Physics · Physics 2009-11-07 A. K. Rajagopal , R. W. Rendell

Network theory proved recently to be useful in the quantification of many properties of financial systems. The analysis of the structure of investment portfolios is a major application since their eventual correlation and overlap impact the…

Statistical Finance · Quantitative Finance 2018-01-09 Danilo Delpini , Stefano Battiston , Guido Caldarelli , Massimo Riccaboni

We find the wealth distribution for an economic agent in the financial market, in analogy with standard derivation of generaliz Boltzman (Tsallis) factor in statistical mechanics. In this respect, Tsallis entropic index separates two…

Other Condensed Matter · Physics 2008-12-10 Amir Hossein Darooneh

We present a methodology to extract the backbone of complex networks based on the weight and direction of links, as well as on nontopological properties of nodes. We show how the methodology can be applied in general to networks in which…

General Finance · Quantitative Finance 2010-06-23 J. B. Glattfelder , S. Battiston

We propose a general framework for modelling network data that is designed to describe aspects of non-exchangeable networks. Conditional on latent (unobserved) variables, the edges of the network are generated by their finite growth history…

Statistics Theory · Mathematics 2020-07-29 Weichi Wu , Sofia Olhede , Patrick Wolfe