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Cryptocurrency, the most controversial and simultaneously the most interesting asset, has attracted many investors and speculators in recent years. The visibly significant market capitalization of cryptos also motivates modern financial…

Risk Management · Quantitative Finance 2021-12-10 Junjie Hu , Wolfgang Karl Härdle , Weiyu Kuo

Financial markets are interconnected, with micro-currents propagating across global markets and shaping economic trends. This paper moves beyond traditional stock market indices to examine cross-sectional return distributions-15 in our…

General Economics · Economics 2025-11-27 Ping Wu , Dan Zhu

The cryptocurrency market is highly volatile compared to traditional financial markets. Hence, forecasting its volatility is crucial for risk management. In this paper, we investigate CryptoQuant data (e.g. on-chain analytics, exchange and…

Trading and Market Microstructure · Quantitative Finance 2024-06-13 Dorien Herremans , Kah Wee Low

The aim of this paper is to dig deeper into understanding the exchange rates and uncertainty dependence. Using the novel Baker et al. (2020)'s daily Twitter Uncertainty Index and BRICS exchange rates, we investigate their extreme tail…

Computational Finance · Quantitative Finance 2025-11-10 Nourhaine Nefzi , Abir Abid

This study empirically examines interdependencies between BitCoin and altcoin markets in the short- and long-run. We apply time-series analytical mechanisms to daily data of 17 virtual currencies (BitCoin + 16 alternative virtual…

Economics · Quantitative Finance 2017-06-23 Pavel Ciaian , Miroslava Rajcaniova , d'Artis Kancs

This paper introduces a Bayesian vector autoregression (BVAR) with stochastic volatility-in-mean and time-varying skewness. Unlike previous approaches, the proposed model allows both volatility and skewness to directly affect macroeconomic…

Econometrics · Economics 2025-10-10 Leonardo N. Ferreira , Haroon Mumtaz , Ana Skoblar

Daily probability changes in Kalshi macro prediction markets forecast cryptocurrency realized volatility through two distinct channels. The monetary policy channel, measured by Fed rate repricing on KXFED contracts, predicts Bitcoin…

Statistical Finance · Quantitative Finance 2026-04-03 Hardhik Mohanty , Bhaskar Krishnamachari

We study the dependency and causality structure of the cryptocurrency market investigating collective movements of both prices and social sentiment related to almost two thousand cryptocurrencies traded during the first six months of 2018.…

Statistical Finance · Quantitative Finance 2019-03-05 Tomaso Aste

Thanks to the high potential for profit, trading has become increasingly attractive to investors as the cryptocurrency and stock markets rapidly expand. However, because financial markets are intricate and dynamic, accurately predicting…

The increasing adoption of Digital Assets (DAs), such as Bitcoin (BTC), rises the need for accurate option pricing models. Yet, existing methodologies fail to cope with the volatile nature of the emerging DAs. Many models have been proposed…

Computational Finance · Quantitative Finance 2022-09-28 Danial Saef , Yuanrong Wang , Tomaso Aste

Correlation networks were used to detect characteristics which, although fixed over time, have an important influence on the evolution of prices over time. Potentially important features were identified using the websites and whitepapers of…

Computational Finance · Quantitative Finance 2018-06-19 Andrew Burnie

This paper characterises dynamic linkages arising from shocks with heterogeneous degrees of persistence. Using frequency domain techniques, we introduce measures that identify smoothly varying links of a transitory and persistent nature.…

Econometrics · Economics 2023-11-21 Jozef Barunik , Michael Ellington

We analyze a fixed panel of S\&P 500 stocks from 1996 to 2026 using complementary static and kinetic Ising models applied to daily binary open-to-close movements. The static pairwise model provides a long-run maximum-entropy summary of…

Applications · Statistics 2026-05-26 Sebin Oh , Marta C. Gonzáleza , Ziqi Wang

We develop a liquidity-sensitive multivariate volatility framework to improve the estimation of time-varying covariance structures under market frictions. We introduce two novel portfolio-level liquidity measures, liquidity jump and…

Statistical Finance · Quantitative Finance 2025-04-21 Qi Deng

We demonstrate using multi-layered networks, the existence of an empirical linkage between the dynamics of the financial network constructed from the market indices and the macroeconomic networks constructed from macroeconomic variables…

General Economics · Economics 2019-03-18 Kiran Sharma , Anindya S. Chakrabarti , Anirban Chakraborti

To identify emerging interdependencies between traded stocks we investigate the behavior of the stocks of FTSE 100 companies in the period 2000-2015, by looking at daily stock values. Exploiting the power of information theoretical measures…

Statistical Finance · Quantitative Finance 2017-07-05 Jacopo Rocchi , Enoch Yan Lok Tsui , David Saad

Cryptocurrencies (CCs) have risen rapidly in market capitalization over the last years. Despite striking price volatility, their high average returns have drawn attention to CCs as alternative investment assets for portfolio and risk…

Portfolio Management · Quantitative Finance 2020-09-18 Alla Petukhina , Simon Trimborn , Wolfgang Karl Härdle , Hermann Elendner

The growing attention on cryptocurrencies has led to increasing research on digital stock markets. Approaches and tools usually applied to characterize standard stocks have been applied to the digital ones. Among these tools is the…

Computational Finance · Quantitative Finance 2023-08-16 Tanya Araújo , Paulo Barbosa

Stock market returns are typically analyzed using standard regression, yet they reside on irregular domains which is a natural scenario for graph signal processing. To this end, we consider a market graph as an intuitive way to represent…

Portfolio Management · Quantitative Finance 2021-06-08 Alvaro Arroyo , Bruno Scalzo , Ljubisa Stankovic , Danilo P. Mandic

Extremal dependence between international stock markets is of particular interest in today's global financial landscape. However, previous studies have shown this dependence is not necessarily stationary over time. We concern ourselves with…

Statistical Finance · Quantitative Finance 2017-09-06 Daniela Castro Camilo , Miguel de Carvalho , Jennifer Wadsworth