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Financial markets are complex adaptive systems, and are commonly studied as complex networks. Most of such studies fall short in two respects: they do not account for non-linearity of the studied relationships, and they create one network…

Statistical Finance · Quantitative Finance 2014-10-01 Paweł Fiedor , Artur Hołda

The high-frequency cross-correlation existing between pairs of stocks traded in a financial market are investigated in a set of 100 stocks traded in US equity markets. A hierarchical organization of the investigated stocks is obtained by…

Statistical Mechanics · Physics 2008-12-02 Giovanni Bonanno , Fabrizio Lillo , Rosario N. Mantegna

Identifying the structural dependence between the cryptocurrencies and predicting market trend are fundamental for effective portfolio management in cryptocurrency trading. In this paper, we present a unified Bayesian framework based on…

Computational Finance · Quantitative Finance 2023-08-03 Anoop C , Neeraj Negi , Anup Aprem

The Ethereum blockchain plays a central role in the broader cryptocurrency ecosystem, enabling a wide range of financial activity through the use of smart contracts. This paper investigates how individual Ethereum wallets responded to the…

Applications · Statistics 2025-07-14 Benjamin Gillen , Rashmi Ranjan Bhuyan , Gourab Mukherjee , Austin Pollok

We present positive evidence of price stability of cryptocurrencies as a medium of exchange. For the sample years from 2016 to 2020, the prices of major cryptocurrencies are found to be stable, relative to major financial assets.…

General Economics · Economics 2021-12-14 Tatsuru Kikuchi , Toranosuke Onishi , Kenichi Ueda

In this brief review, we critically examine the recent work done on correlation-based networks in financial systems. The structure of empirical correlation matrices constructed from the financial market data changes as the individual stock…

Computational Finance · Quantitative Finance 2020-04-21 Vishwas Kukreti , Hirdesh K. Pharasi , Priya Gupta , Sunil Kumar

Asymmetric relationship between price and volatility is a prominent feature of the financial market time series. This paper explores the price-volatility nexus in cryptocurrency markets and investigates the presence of asymmetric volatility…

Statistical Finance · Quantitative Finance 2021-07-09 Shinji Kakinaka , Ken Umeno

The aim of this paper is to analyse the Bitcoin in order to shed some light on its nature and behaviour. We select 9 cryptocurrencies that account for almost 75\% of total market capitalisation and compare their evolution with that of a…

Statistical Finance · Quantitative Finance 2023-09-08 Esther Cabezas-Rivas , Felipe Sánchez-Coll , Isaac Tormo-Xaixo

We conclude from an analysis of high resolution NYSE data that the distribution of the traded value $f_i$ (or volume) has a finite variance $\sigma_i$ for the very large majority of stocks $i$, and the distribution itself is non-universal…

Physics and Society · Physics 2009-11-13 Zoltan Eisler , Janos Kertesz

High-frequency trading (HFT) uses computer algorithms to make trading decisions in short time scales (e.g., second-level), which is widely used in the Cryptocurrency (Crypto) market (e.g., Bitcoin). Reinforcement learning (RL) in financial…

Trading and Market Microstructure · Quantitative Finance 2023-09-25 Molei Qin , Shuo Sun , Wentao Zhang , Haochong Xia , Xinrun Wang , Bo An

We calculated the cross correlations between the half-hourly times series of the ten Dow Jones US economic sectors over the period February 2000 to August 2008, the two-year intervals 2002--2003, 2004--2005, 2008--2009, and also over 11…

Statistical Finance · Quantitative Finance 2015-05-20 Yiting Zhang , Gladys Hui Ting Lee , Jian Cheng Wong , Jun Liang Kok , Manamohan Prusty , Siew Ann Cheong

Assuming frictionless trading, classical stochastic portfolio theory (SPT) provides relative arbitrage strategies. However, the costs associated with real-world execution are state-dependent, volatile, and under increasing stress during…

Portfolio Management · Quantitative Finance 2025-07-15 Nader Karimi , Erfan Salavati

Cryptocurrencies such as Bitcoin and Ethereum have recently gained a lot of popularity, not only as a digital form of currency but also as an investment vehicle. Online marketplaces and exchanges allow users across the world to convert…

Discrete Mathematics · Computer Science 2018-07-17 Francesco Bortolussi , Zeger Hoogeboom , Frank W. Takes

The bitcoin price has surged in recent years and it has also exhibited phases of rapid decay. In this paper we address the question to what extent this novel cryptocurrency market can be viewed as a classic or semi-efficient market. Novel…

Statistical Finance · Quantitative Finance 2019-06-26 Josselin Garnier , Knut Solna

A cryptocurrency is a digital asset maintained by a decentralised system using cryptography. Investors in this emerging digital market are exploring the profitability potential of portfolios in place of single coins. Portfolios are…

Physics and Society · Physics 2023-04-06 Ruixue Jing , Luis Enrique Correa Rocha

Finding the minimum spanning tree (MST) of a graph is an important task in computer vision, as it enables a sparse and low-cost representation of connectivity among elements (such as superpixels, points, or regions), which is useful for…

Multifractality is a concept that helps compactly grasping the most essential features of the financial dynamics. In its fully developed form, this concept applies to essentially all mature financial markets and even to more liquid…

Statistical Finance · Quantitative Finance 2024-11-15 Marcin Wątorek , Marcin Królczyk , Jarosław Kwapień , Tomasz Stanisz , Stanisław Drożdż

The rapidly evolving cryptocurrency market presents unique challenges for investment due to its inherent volatility and evolving regulatory environment. Collective price movements can be exploited to construct diversified portfolios with…

Popular Physics · Physics 2026-05-01 Ruixue Jing , Ryota Kobayashi , Luis Enrique Correa Rocha

Different investment strategies are adopted in short-term and long-term depending on the time scales, even though time scales are adhoc in nature. Empirical mode decomposition based Hurst exponent analysis and variance technique have been…

Statistical Finance · Quantitative Finance 2021-03-10 Ajit Mahata , Md Nurujjaman

A quadratic minimum spanning tree (QMST) problem is to determine a minimum spanning tree of a connected graph having edges which are associated with linear and quadratic weights. The linear weights are the edge costs which are associated…

Optimization and Control · Mathematics 2017-12-14 Saibal Majumder , Samarjit Kar , Tandra Pal
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