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The out-of-time ordered correlator (OTOC) is a measure of scrambling of quantum information. Scrambling is intuitively considered to be a significant feature of chaotic systems and thus the OTOC is widely used as a measure of chaos. For…

Quantum Physics · Physics 2023-06-12 Tomás Notenson , Ignacio García-Mata , Augusto J. Roncaglia , Diego A. Wisniacki

Financial markets display scale-free behavior in many different aspects. The power-law behavior of part of the distribution of individual wealth has been recognized by Pareto as early as the nineteenth century. Heavy-tailed and scale-free…

Trading and Market Microstructure · Quantitative Finance 2009-06-03 M. Ebert , W. Paul

We present a perturbation theory of the market impact based on an extension of the framework proposed by [Loeper, 2018] -- originally based on [Liu and Yong, 2005] -- in which we consider only local linear market impact. We study the…

Trading and Market Microstructure · Quantitative Finance 2019-11-05 Emilio Said

The prime numbers have been a source of fascination for millenia and continue to surprise us. Motivated by the hyperuniformity concept, which has attracted recent attention in physics and materials science, we show that the prime numbers in…

Statistical Mechanics · Physics 2018-09-26 S. Torquato , G. Zhang , M. de Courcy-Ireland

Anomalous diffusions arise as scaling limits of continuous-time random walks (CTRWs) whose innovation times are distributed according to a power law. The impact of a non-exponential waiting time does not vanish with time and leads to…

Pricing of Securities · Quantitative Finance 2020-04-13 Antoine Jacquier , Lorenzo Torricelli

The Multiscale Law of Requisite Variety is a scientific law relating, at each scale, the variation in an environment to the variation in internal state that is necessary for effective response by a system. While this law has been used to…

Physics and Society · Physics 2018-12-04 Taeer Bar-Yam , Owen Lynch , Yaneer Bar-Yam

The intraday pattern, long memory, and multifractal nature of the intertrade durations, which are defined as the waiting times between two consecutive transactions, are investigated based upon the limit order book data and order flows of 23…

Trading and Market Microstructure · Quantitative Finance 2008-12-18 Zhi-Qiang Jiang , Wei Chen , Wei-Xing Zhou

The concept of structural invariance previously introduced by the authors is used to argue that the connection between random matrix theory and quantum systems with a chaotic classical counterpart is in fact largely exact in the…

chao-dyn · Physics 2008-02-03 F. Leyvraz , T. H. Seligman

Publicly traded companies are fundamental units of contemporary economies and markets and are important mechanisms through which humans interact with their environments. Understanding the general properties that underlie the processes of…

Physics and Society · Physics 2022-07-07 Jiang Zhang , Christopher P. Kempes , Marcus J. Hamilton , Ruyi Tao , Geoffrey B. West

Prices in financial markets exhibit extreme jumps far more often than can be accounted for by external news. Further, magnitudes of price changes are correlated over long times. These so called stylized facts are quantified by scaling laws…

Trading and Market Microstructure · Quantitative Finance 2016-05-04 Felix Patzelt , Klaus Pawelzik

Metcalfe's Law captures the relationship between the value of a network and its scale, asserting that a network's value is directly proportional to the square of its size. Over the past four decades, various researchers have proposed…

Networking and Internet Architecture · Computer Science 2024-07-12 Cheng Wang , Yi Wang , Changjun Jiang

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

The large scale fluctuations of the ordered state in active matter systems are usually characterised by studying the "giant number fluctuations" of particles in any finite volume, as compared to the expectations from the central limit…

Soft Condensed Matter · Physics 2018-05-25 Supravat Dey , Dibyendu Das , R. Rajesh

Proponents of behavioral finance have identified several "puzzles" in the market that are inconsistent with rational finance theory. One such puzzle is the "excess volatility puzzle". Changes in equity prices are too large given changes in…

General Finance · Quantitative Finance 2020-01-27 Abootaleb Shirvani , Frank J. Fabozzi

Single index financial market models cannot account for the empirically observed complex interactions between shares in a market. We describe a multi-share financial market model and compare characteristics of the volatility, that is the…

Condensed Matter · Physics 2009-10-31 Adam Ponzi

The control of large queueing networks is a notoriously difficult problem. Recently, an interesting new policy design framework for the control problem called h-MaxWeight has been proposed: h-MaxWeight is a natural generalization of the…

Systems and Control · Computer Science 2013-01-10 Gerhard Wunder , Chan Zhou , Martin Kasparick

Martensites subjected to quasistatic deformation are known to exhibit power law distributed acoustic emission in a broad range of scales, however, the origin of the observed scaling behavior and the mechanism of self-organization towards…

Materials Science · Physics 2025-07-08 Oğuz Umut Salman , Alphonse Finel , Lev Truskinovsky

Long-range correlation in financial time series reflects the complex dynamics of the stock markets driven by algorithms and human decisions. Our analysis exploits ultra-high frequency order book data from NASDAQ Nordic over a period of…

Trading and Market Microstructure · Quantitative Finance 2017-11-10 Martin Magris , Jiyeong Kim , Esa Rasanen , Juho Kanniainen

The dynamics of prices in financial markets has been studied intensively both experimentally (data analysis) and theoretically (models). Nevertheless, a complete stochastic characterization of volatility is still lacking. What it is well…

Statistical Mechanics · Physics 2009-10-31 Michele Pasquini , Maurizio Serva

The functional defined as the squared modulus of the spatial average of the wave function squared, plays the role of an ``order parameter'' for the transition between Hamiltonian ensembles with orthogonal and unitary symmetry. Upon breaking…

Condensed Matter · Physics 2008-02-03 S. A. van Langen , P. W. Brouwer , C. W. J. Beenakker