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A model is proposed for Bitcoin prices that takes into account market attention. Market attention, modeled by a mean-reverting Cox-Ingersoll-Ross processes, affects the volatility of Bitcoin returns, with some delay. The model is affine and…

Pricing of Securities · Quantitative Finance 2024-01-17 Alvaro Guinea Julia , Alet Roux

Financial firms commonly process and store billions of time-series data, generated continuously and at a high frequency. To support efficient data storage and retrieval, specialized time-series databases and systems have emerged. These…

The time evolution of complex systems usually can be described through stochastic processes. These processes are measured at finite resolution, what necessarily reduces them to finite sequences of real numbers. In order to relate these data…

Condensed Matter · Physics 2007-05-23 D. M. Tavares , L. S. Lucena

In our previous studies we have investigated the structural complexity of time series describing stock returns on New York's and Warsaw's stock exchanges, by employing two estimators of Shannon's entropy rate based on Lempel-Ziv and Context…

Statistical Finance · Quantitative Finance 2014-08-19 Paweł Fiedor

Financial markets, being spectacular examples of complex systems, display rich correlation structures among price returns of different assets. The correlation structures change drastically, akin to phase transitions in physical phenomena,…

Statistical Finance · Quantitative Finance 2020-07-23 Anirban Chakraborti , Hrishidev , Kiran Sharma , Hirdesh K. Pharasi

By adopting Multifractal detrended fluctuation (MF-DFA) analysis methods, the multifractal nature is revealed in the high-frequency data of two typical indexes, the Shanghai Stock Exchange Composite 180 Index (SH180) and the Shenzhen Stock…

Statistical Finance · Quantitative Finance 2018-06-21 Xin-Lan Fu , Xing-Lu Gao , Zheng Shan , Zhi-Qiang Jiang , Wei-Xing Zhou

The entropy density is an intuitive and powerful concept to study the complicated nonlinear processes derived from physical systems. We develop the minimum entropy density method (MEDM) to detect the structure scale of a given time series,…

Data Analysis, Statistics and Probability · Physics 2008-12-02 Jeong Won Lee , Joongwoo Brian Park , Hang-Hyun Jo , Jae-Suk Yang , Hie-Tae Moon

This paper investigates the temporal patterns of activity in the cryptocurrency market with a focus on Bitcoin, Ethereum, Dogecoin, and WINkLink from January 2020 to December 2022. Market activity measures - logarithmic returns, volume, and…

Trading and Market Microstructure · Quantitative Finance 2023-08-22 Marcin Wątorek , Maria Skupień , Jarosław Kwapień , Stanisław Drożdż

A large set of daily FOREX time series is analyzed. The corresponding correlation matrices (CM) are constructed for USD, EUR and PLZ used as the base currencies. The triangle rule is interpreted as constraints reducing the number of…

Physics and Society · Physics 2008-12-02 A. Z. Gorski , S. Drozdz , J. Kwapien , P. Oswiecimka

Bid-ask spread is taken as an important measure of the financial market liquidity. In this article, we study the dynamics of the spread return and the spread volatility of four liquid stocks in the Chinese stock market, including the memory…

Statistical Finance · Quantitative Finance 2015-05-30 Tian Qiu , Guang Chen , Li-Xin Zhong , Xiao-Run Wu

The philosophy of blockchain technology is concerned, among other things, with blockchain ontology, how it might be characterised, how it is being created, implemented, and adopted, how it operates in the world, and how it evolves over…

Cryptography and Security · Computer Science 2019-11-12 Renato P. dos Santos

We perform a systematic investigation on the components of the empirical multifractality of financial returns using the daily data of Dow Jones Industrial Average from 26 May 1896 to 27 April 2007 as an example. The temporal structure and…

Statistical Finance · Quantitative Finance 2009-12-24 Wei-Xing Zhou

The multifractal behavior for tick data of prices is investigated in Korean financial market. Using the rescaled range analysis(R/S analysis), we show the multifractal nature of returns for the won-dollar exchange rate and the KOSPI. We…

Statistical Mechanics · Physics 2008-12-02 Kyungsik Kim , Seong-Min Yoon

Multifractal fluctuations in the time dynamics of seismicity data have been analyzed. We investigated the interspike intervals (times between successive earthquakes) of one of the most seismically active areas of central Italy by using the…

Statistical Mechanics · Physics 2009-11-11 Luciano Telesca , Vincenzo Lapenna , Maria Macchiato

We perform a comparative study of applicability of the Multifractal Detrended Fluctuation Analysis (MFDFA) and the Wavelet Transform Modulus Maxima (WTMM) method in proper detecting of mono- and multifractal character of data. We quantify…

Other Condensed Matter · Physics 2008-12-18 Pawel Oswiecimka , Jaroslaw Kwapien , S. Drozdz

Cryptocoins (i.e., Bitcoin, Ether, Litecoin) are tradable digital assets. Ownerships of cryptocoins are registered on distributed ledgers (i.e., blockchains). Secure encryption techniques guarantee the security of the transactions…

Computational Engineering, Finance, and Science · Computer Science 2024-09-06 Pasquale De Rosa , Pascal Felber , Valerio Schiavoni

We consider a mean-reverting stochastic volatility model which satisfies some relevant stylized facts of financial markets. We introduce an algorithm for the detection of peaks in the volatility profile, that we apply to the time series of…

Statistical Finance · Quantitative Finance 2016-12-05 Mario Bonino , Matteo Camelia , Paolo Pigato

A non-fungible token (NFT) market is a new trading invention based on the blockchain technology which parallels the cryptocurrency market. In the present work we study capitalization, floor price, the number of transactions, the…

Computational Finance · Quantitative Finance 2024-01-17 Paweł Szydło , Marcin Wątorek , Jarosław Kwapień , Stanisław Drożdż

In a spatially embedded network, that is a network where nodes can be uniquely determined in a system of coordinates, links' weights might be affected by metric distances coupling every pair of nodes (dyads). In order to assess to what…

Data Analysis, Statistics and Probability · Physics 2014-03-05 Riccardo Chiarucci , Franco Ruzzenenti , Maria I. Loffredo

Multifractal analysis (MFA) is a useful tool to systematically describe the spatial heterogeneity of both theoretical and experimental fractal patterns. One of the widely used methods for fractal analysis is box-covering. It is known to be…

Physics and Society · Physics 2021-04-14 Yuemin Ding , Jin-Long Liu , Xiaohui Li , Yu-Chu Tian , Zu-Guo Yu
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