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A fundamental problem in the study of complex networks is to provide quantitative measures of correlation and information flow between different parts of a system. To this end, several notions of communicability have been introduced and…

Physics and Society · Physics 2015-04-08 Ernesto Estrada , Naomichi Hatano , Michele Benzi

We propose a new framework for measuring connectedness among financial variables that arises due to heterogeneous frequency responses to shocks. To estimate connectedness in short-, medium-, and long-term financial cycles, we introduce a…

Methodology · Statistics 2017-12-20 Jozef Barunik , Tomas Krehlik

Many topological and dynamical properties of complex networks are defined by assuming that most of the transport on the network flows along the shortest paths. However, there are different scenarios in which non-shortest paths are used to…

Physics and Society · Physics 2008-12-16 Ernesto Estrada , Naomichi Hatano

We analyse the flow of information in multiplex networks by means of the communicability function. First, we generalize this measure from its definition from simple graphs to multiplex networks. Then, we study its relevance for the analysis…

Physics and Society · Physics 2015-06-18 Ernesto Estrada , Jesus Gomez-Gardenes

Financial market is an example of complex system, which is characterized by a highly intricate organization and the emergence of collective behavior. In this paper, we quantify this emergent dynamics in the financial market by using…

General Finance · Quantitative Finance 2011-09-07 Thomas Kauê Dal'Maso Peron , Francisco Aparecido Rodrigues

The financial markets are understood as complex dynamical systems whose dynamics is analysed mostly using nonstationary and brief data sets that usually come from stock markets. For such data sets, a reliable method of analysis is based on…

Statistical Finance · Quantitative Finance 2022-11-23 Krishnadas M. , K. P. Harikrishnan , G. Ambika

Over the last two decades, financial systems have been studied and analysed from the perspective of complex networks, where the nodes and edges in the network represent the various financial components and the strengths of correlations…

Statistical Finance · Quantitative Finance 2021-02-02 Areejit Samal , Sunil Kumar , Yasharth Yadav , Anirban Chakraborti

The recent financial crisis has stressed the need to understand financial systems as networks of interdependent countries, where cross-border financial linkages play the fundamental role. It has also been emphasized that the relevance of…

Statistical Finance · Quantitative Finance 2015-06-03 Alessandro Spelta , Tanya Araújo

Wireless sensor networks are an important technology for making distributed autonomous measures in hostile or inaccessible environments. Among the challenges they pose, the way data travel among them is a relevant issue since their…

Data Analysis, Statistics and Probability · Physics 2013-08-15 Raquel S. Cabral , Andre L. L. Aquino , Alejandro C. Frery , Osvaldo A. Rosso , Jaime A. Ramírez

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

Financial networks are typically estimated by applying standard time series analyses to price-based economic variables collected at low-frequency (e.g., daily or monthly stock returns or realized volatility). These networks are used for…

Statistical Finance · Quantitative Finance 2022-08-09 Kara Karpman , Sumanta Basu , David Easley

Social networks are of interest to researchers in part because they are thought to mediate the flow of information in communities and organizations. Here we study the temporal dynamics of communication using on-line data, including e-mail…

Physics and Society · Physics 2008-06-20 Gueorgi Kossinets , Jon Kleinberg , Duncan Watts

A financial system contains many elements networked by their relationships. Extensive works show that topological structure of the network stores rich information on evolutionary behaviors of the system such as early warning signals of…

Statistical Finance · Quantitative Finance 2018-05-09 Li Zhou , Lu Qiu , Changgui Gu , Huijie Yang

A growing body of studies on systemic risk in financial markets has emphasized the key importance of taking into consideration the complex interconnections among financial institutions. Much effort has been put in modeling the contagion…

The complexity of financial markets arise from the strategic interactions among agents trading stocks, which manifest in the form of vibrant correlation patterns among stock prices. Over the past few decades, complex financial markets have…

Statistical Finance · Quantitative Finance 2021-02-02 Areejit Samal , Hirdesh K. Pharasi , Sarath Jyotsna Ramaia , Harish Kannan , Emil Saucan , Jürgen Jost , Anirban Chakraborti

In recent times, the functioning of various aspects of modern society---ranging from the various infrastructural utilities such as electrical power, water to socio-economical aspects such as telecommunications, business, commerce,…

Networking and Internet Architecture · Computer Science 2016-12-30 Waqar Ahmed , Osman Hasan , Usman Pervez , Junaid Qadir

Financial data has been extensively studied for correlations using Pearson's cross-correlation coefficient {\rho} as the point of departure. We employ an estimator based on recurrence plots --- the Correlation of Probability of Recurrence…

Statistical Finance · Quantitative Finance 2013-06-05 B. Goswami , G. Ambika , N. Marwan , J. Kurths

The credit crisis roiling the world's financial markets will likely take years and entire careers to fully understand and analyze. A short empirical investigation of the current trends, however, demonstrates that the losses in certain…

Statistical Finance · Quantitative Finance 2015-05-13 Reginald D. Smith

We use real-world contact sequences, time-ordered lists of contacts from one person to another, to study how fast information or disease can spread across network of contacts. Specifically we measure the reachability time -- the average…

Other Condensed Matter · Physics 2007-05-23 Petter Holme

Following the financial crisis of 2007-2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily…

Risk Management · Quantitative Finance 2017-02-28 Marco Bardoscia , Stefano Battiston , Fabio Caccioli , Guido Caldarelli
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