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We propose a novel algorithm - Multifractal Cross-Correlation Analysis (MFCCA) - that constitutes a consistent extension of the Detrended Cross-Correlation Analysis (DCCA) and is able to properly identify and quantify subtle characteristics…

Data Analysis, Statistics and Probability · Physics 2014-02-25 Paweł Oświȩcimka , Stanisław Drożdż , Marcin Forczek , Stanisław Jadach , Jarosław Kwapień

The detrended cross-correlation coefficient $\rho_{\rm DCCA}$ has recently been proposed to quantify the strength of cross-correlations on different temporal scales in bivariate, non-stationary time series. It is based on the detrended…

Data Analysis, Statistics and Probability · Physics 2015-12-09 Jaroslaw Kwapien , Pawel Oswiecimka , Stanislaw Drozdz

We propose an algorithm to capture emergent patterns in the cross-correlations of financial markets, highlighting regime changes on a global scale. In our approach, financial markets are viewed as complex adaptive systems, and multiscale…

General Economics · Economics 2024-09-02 Marina Dolfin , George Kapetanios , Leone Leonida , Jose De Leon Miranda

Based on a recently proposed $q$-dependent detrended cross-correlation coefficient $\rho_q$, we generalize the concept of minimum spanning tree (MST) by introducing a family of $q$-dependent minimum spanning trees ($q$MST) that are…

Statistical Finance · Quantitative Finance 2017-05-19 Jaroslaw Kwapien , Pawel Oswiecimka , Marcin Forczek , Stanislaw Drozdz

In the paper, we introduce a new measure of correlation between possibly non-stationary series. As the measure is based on the detrending moving-average cross-correlation analysis (DMCA), we label it as the DMCA coefficient…

Statistical Finance · Quantitative Finance 2014-03-27 Ladislav Kristoufek

We present a study on portfolio investments in financial applications. We describe a general modeling and simulation framework and study the impact on the use of different metrics to measure the correlation among assets. In particular,…

Computational Engineering, Finance, and Science · Computer Science 2022-07-25 Stefano Ferretti

In this paper, we study weakly dynamic undirected graphs, that can be used to represent some logistic networks. The goal is to deliver all the delivery points in the network. The network exists in a mostly stable environment, except for a…

Data Structures and Algorithms · Computer Science 2019-04-11 Moustafa Nakechbandi , Jean-Yves Colin , Hervé Mathieu

A complete understanding of real networks requires us to understand the consequences of the uneven interaction strengths between a system's components. Here we use the minimum spanning tree (MST) to explore the effect of weight assignment…

Disordered Systems and Neural Networks · Physics 2007-05-23 P. J. Macdonald , E. Almaas , A. -L. Barabasi

During a financial crisis, the capital markets network frequently exhibits a high correlation between returns. We developed a network analysis framework based on daily returns from 42 countries to determine systemic stability. Our network…

Dynamical Systems · Mathematics 2022-01-06 Supanat Kamtue , Pongsak Luangaram , Sirawit Woramongkhon

We study the time dependence of maximal spanning trees and asset graphs based on correlation matrices of stock returns. In these networks the nodes represent companies and links are related to the correlation coefficients between them.…

Physics and Society · Physics 2009-11-13 Tapio Heimo , Kimmo Kaski , Jari Saramaki

Distance correlation coefficient (DCC) can be used to identify new associations and correlations between multiple variables. The distance correlation coefficient applies to variables of any dimension, can be used to determine smaller sets…

Statistical Finance · Quantitative Finance 2023-01-13 J. E. Salgado-Hernández , Manan Vyas

Evaluation of systemic risk in networks of financial institutions in general requires information of inter-institution financial exposures. In the framework of Debt Rank algorithm, we introduce an approximate method of systemic risk…

Risk Management · Quantitative Finance 2021-04-14 Sebastian M. Krause , Hrvoje Štefančić , Vinko Zlatić , Guido Caldarelli

This paper considers robust stability analysis of a large network of interconnected uncertain systems. To avoid analyzing the entire network as a single large, lumped system, we model the network interconnections with integral quadratic…

Optimization and Control · Mathematics 2016-11-17 Martin S. Andersen , Anders Hansson , Sina Khoshfetrat Pakazad , Anders Rantzer

We introduce an event based framework of directional changes and overshoots to map continuous financial data into the so-called Intrinsic Network - a state based discretisation of intrinsically dissected time series. Defining a method for…

Trading and Market Microstructure · Quantitative Finance 2014-02-11 Anton Golub , Gregor Chliamovitch , Alexandre Dupuis , Bastien Chopard

Level crossing rate (LCR) is a well-known statistical tool that is related to the duration of a random stationary fading process \emph{on average}. In doing so, LCR cannot capture the behavior of \emph{extremely rare} random events.…

Information Theory · Computer Science 2023-07-24 Nikolaos I. Miridakis , Theodoros A. Tsiftsis , Panagiotis A. Karkazis , Helen C. Leligou , Fotis Foukalas

Quantifying structural stress in transaction networks requires metrics that capture structural organization beyond transaction volume alone. In this work, we introduce the Inefficiency Metric, a deterministic indicator designed to…

Physics and Society · Physics 2026-05-27 Deep Nath , Paolo Tasca , Nikhil Vadgama , Marco Alberto Javarone

When common factors strongly influence two power-law cross-correlated time series recorded in complex natural or social systems, using classic detrended cross-correlation analysis (DCCA) without considering these common factors will bias…

Statistical Finance · Quantitative Finance 2015-06-29 Xi-Yuan Qian , Ya-Min Liu , Zhi-Qiang Jiang , Boris Podobnik , Wei-Xing Zhou , H. Eugene Stanley

In this work, we develop the asymptotic theory of the Detrended Fluctuation Analysis (DFA) and Detrended Cross-Correlation Analysis (DCCA) for trend-stationary stochastic processes without any assumption on the specific form of the…

Statistics Theory · Mathematics 2022-11-16 Taiane Schaedler Prass , Guilherme Pumi

Estimating epistemic uncertainty of models used in low-latency applications and Out-Of-Distribution samples detection is a challenge due to the computationally demanding nature of uncertainty estimation techniques. Estimating model…

Machine Learning · Computer Science 2020-10-28 Akshatha Kamath , Dwaraknath Gnaneshwar , Matias Valdenegro-Toro

It is ubiquitous in natural and social sciences that two variables, recorded temporally or spatially in a complex system, are cross-correlated and possess multifractal features. We propose a new method called multifractal detrended…

Data Analysis, Statistics and Probability · Physics 2008-12-02 Wei-Xing Zhou
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