English
Related papers

Related papers: The $\kappa$-generalised Distribution for Stock Re…

200 papers

We investigate the general problem of how to model the kinematics of stock prices without considering the dynamical causes of motion. We propose a stochastic process with long-range correlated absolute returns. We find that the model is…

Disordered Systems and Neural Networks · Physics 2008-12-02 M. Serva , U. L. Fulco , M. L. Lyra , G. M. Viswanathan

Universal features in stock markets and their derivative markets are studied by means of probability distributions in internal rates of return on buy and sell transaction pairs. Unlike the stylized facts in log normalized returns, the…

Information Theory · Computer Science 2009-11-11 Lukas Pichl , Taisei Kaizoji , Takuya Yamano

Returns distributions are heavy-tailed across asset classes. In this note, I examine the implications of this well-known stylized fact for the joint statistics of performance (absolute return) and Sharpe ratio (risk-adjusted return). Using…

Statistical Finance · Quantitative Finance 2024-06-27 Matteo Smerlak

At high levels, the asymptotic distribution of a stationary, regularly varying Markov chain is conveniently given by its tail process. The latter takes the form of a geometric random walk, the increment distribution depending on the sign of…

Methodology · Statistics 2014-12-11 Holger Drees , Johan Segers , Michał Warchoł

Labour productivity distribution (dispersion) is studied both theoretically and empirically. Superstatistics is presented as a natural theoretical framework for productivity. The demand index $\kappa$ is proposed within this framework as a…

General Finance · Quantitative Finance 2009-01-13 Hideaki Aoyama , Yoshi Fujiwara , Yuichi Ikeda , Hiroshi Iyetomi , Wataru Souma

The probability distribution of stock price changes is studied by analyzing a database (the Trades and Quotes Database) documenting every trade for all stocks in three major US stock markets, for the two year period Jan 1994 -- Dec 1995. A…

Statistical Mechanics · Physics 2009-10-31 Parameswaran Gopikrishnan , Martin Meyer , Luis A Nunes Amaral , H Eugene Stanley

It is well known that the probability distribution of high-frequency financial returns is characterized by a leptokurtic, heavy-tailed shape. This behavior undermines the typical assumption of Gaussian log-returns behind the standard…

Statistical Finance · Quantitative Finance 2023-06-14 Federica De Domenico , Giacomo Livan , Guido Montagna , Oreste Nicrosini

Several works have observed heavy-tailed behavior in the distributions of returns in different markets, which are observable indicators of underlying complex dynamics. Such prior works study return distributions that are marginalized across…

Statistical Mechanics · Physics 2024-01-11 Hideyuki Miyahara , Hai Qian , Pavan Holur , Vwani Roychowdhury

We analyze historic S&P500 multi-day returns: from daily returns to those accumulated over up to ten days. Despite symmetry breaking between gains and losses in the distribution of returns, resulting in its positive mean and negative skew,…

Statistical Finance · Quantitative Finance 2026-04-20 Arshia Ghasemi , Siqi Shao , R. A. Serota

A new inflationary scenario driven by a slowly-rolling homogeneous scalar field whose potential $V\left(\varphi\right)$ is given by a generalized exponential function is investigated. Within the {\it slow-roll} approximation we obtain the…

Cosmology and Nongalactic Astrophysics · Physics 2024-09-17 B. W. Ribeiro , I. M. Macêdo , F. C. Carvalho

We argue that negative skew and positive mean of the distribution of stock returns are largely due to the broken symmetry of stochastic volatility governing gains and losses. Starting with stochastic differential equations for stock returns…

Statistical Finance · Quantitative Finance 2026-03-10 Siqi Shao , Arshia Ghasemi , Hamed Farahani , R. A. Serota

We show that size-rank distributions with power-law decay (often only over a limited extent) observed in a vast number of instances in a widespread family of systems obey Tsallis statistics. The theoretical framework for these distributions…

Statistical Mechanics · Physics 2014-09-29 G. Cigdem Yalcin , Alberto Robledo , Murray Gell-Mann

We have investigated the proof of the $H$ theorem within a manifestly covariant approach by considering the relativistic statistical theory developed in [G. Kaniadakis, Phy. Rev. E {\bf 66}, 056125, 2002; {\it ibid.} {\bf 72}, 036108,…

Statistical Mechanics · Physics 2007-05-23 R. Silva

To know the statistical distribution of a variable is an important problem in management of resources. Distributions of the power law type are observed in many real systems. However power law distributions have an infinite variance and thus…

Statistical Mechanics · Physics 2008-12-02 Hari M. Gupta , Jose R. Campanha

Stock prices are known to exhibit non-Gaussian dynamics, and there is much interest in understanding the origin of this behavior. Here, we present a model that explains the shape and scaling of the distribution of intraday stock price…

Statistical Finance · Quantitative Finance 2015-05-13 Austin Gerig , Javier Vicente , Miguel A. Fuentes

We analyze the \textit{Large Deviation Probability (LDP)} of linear factor models generated from non-identically distributed components with \textit{regularly-varying} tails, a large subclass of heavy tailed distributions. An efficient…

Statistics Theory · Mathematics 2019-12-10 Farzad Pourbabaee , Omid Shams Solari

We present a simple model of a stock market where a random communication structure between agents gives rise to a heavy tails in the distribution of stock price variations in the form of an exponentially truncated power-law, similar to…

Statistical Mechanics · Physics 2014-01-14 Rama Cont , Jean-Philippe Bouchaud

We analyze the price return distributions of currency exchange rates, cryptocurrencies, and contracts for differences (CFDs) representing stock indices, stock shares, and commodities. Based on recent data from the years 2017--2020, we model…

Statistical Finance · Quantitative Finance 2021-07-15 Marcin Wątorek , Jarosław Kwapień , Stanisław Drożdż

We investigate possible effects of quantum power-law statistical mechanics on the relativistic nuclear equation of state in the context of the Walecka quantum hadrodynamics theory. By considering the Kaniadakis non-Gaussian statistics,…

Nuclear Theory · Physics 2009-08-17 F. I. M. Pereira , R. Silva , J. S. Alcaniz

Some new survival distributions are introduced based on a generalised exponential function. This class of distributions includes heavy-tailed generalisations of exponential, Weibull and gamma distributions. Properties of the distributions…

Methodology · Statistics 2014-12-03 Rose Baker