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We introduce a minimal Agent Based Model with two classes of agents, fundamentalists (stabilizing) and chartists (destabilizing) and we focus on the essential features which can generate the stylized facts. This leads to a detailed…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 V. Alfi , L. Pietronero , A. Zaccaria

A new modeling framework for bipartite social networks arising from a sequence of partially time-ordered relational events is proposed. We directly model the joint distribution of the binary variables indicating if each single actor is…

Methodology · Statistics 2018-10-23 Francesco Bartolucci , Antonietta Mira , Stefano Peluso

The correlation matrix formalism is used to study temporal aspects of the stock market evolution. This formalism allows to decompose the financial dynamics into noise as well as into some coherent repeatable intraday structures. The present…

Soft Condensed Matter · Physics 2009-11-07 J. Kwapien , S. Drozdz , F. Gruemmer , F. Ruf , J. Speth

Macro-economic models describe the dynamics of economic quantities. The estimations and forecasts produced by such models play a substantial role for financial and political decisions. In this contribution we describe an approach based on…

Neural and Evolutionary Computing · Computer Science 2013-09-24 Gabriel Kronberger , Stefan Fink , Michael Kommenda , Michael Affenzeller

The properties of q-dependent cross-correlation matrices of stock market have been analyzed by using the random matrix theory and complex network. The correlation structures of the fluctuations at different magnitudes have unique…

Statistical Finance · Quantitative Finance 2018-03-14 Longfeng Zhao , Wei Li , Andrea Fenu , Boris Podobnik , Yougui Wang , H. Eugene Stanley

Factor models have become a common and valued tool for understanding the risks associated with an investing strategy. In this report we describe Exabel's factor model, we quantify the fraction of the variability of the returns explained by…

Applications · Statistics 2022-03-24 Øyvind Grotmol , Michael Scheuerer , Kjersti Aas , Martin Jullum

Latent variable models for network data extract a summary of the relational structure underlying an observed network. The simplest possible models subdivide nodes of the network into clusters; the probability of a link between any two nodes…

Machine Learning · Computer Science 2012-07-03 Konstantina Palla , David Knowles , Zoubin Ghahramani

Financial markets exhibit highly dynamic and complex behaviors shaped by both historical price trajectories and exogenous narratives, such as news, policy interpretations, and social media sentiment. The heterogeneity in these data and the…

Machine Learning · Computer Science 2025-07-22 Xiaotong Luo , Shengda Zhuo , Min Chen , Lichun Li , Ruizhao Lu , Wenqi Fan , Shuqiang Huang , Yin Tang

Artificial stock market simulation based on agent is an important means to study financial market. Based on the assumption that the investors are composed of a main fund, small trend and contrarian investors characterized by four…

Trading and Market Microstructure · Quantitative Finance 2021-09-22 Yong Shi , Bo Li , Guangle Du

Systems of dynamical interactions between competing species can be used to model many complex systems, and can be mathematically described by {\em random} networks. Understanding how patterns of activity arise in such systems is important…

Adaptation and Self-Organizing Systems · Physics 2016-01-21 Nick McCullen , Thomas Wagenknecht

We construct a correlation matrix based financial network for a set of New York Stock Exchange (NYSE) traded stocks with stocks corresponding to nodes and the links between them added one after the other, according to the strength of the…

Physics and Society · Physics 2007-05-23 G. Tibely , J. -P. Onnela , J. Saramaki , K. Kaski , J. Kertesz

We present a macroeconomic agent-based model that combines several mechanisms operating at the same timescale, while remaining mathematically tractable. It comprises enterprises and workers who compete in a job market and a commodity goods…

General Finance · Quantitative Finance 2012-11-26 Cornelia Metzig , Mirta Gordon

Many societies are organized in networks that are formed by people who meet and interact over time. In this paper, we present a first model to capture the micro-foundations of social networks evolution, where boundedly rational agents of…

Social and Information Networks · Computer Science 2015-08-17 Ahmed M. Alaa , Kartik Ahuja , Mihaela van der Schaar

Background: For complex financial systems, the negative and positive return-volatility correlations, i.e., the so-called leverage and anti-leverage effects, are particularly important for the understanding of the price dynamics. However,…

Statistical Finance · Quantitative Finance 2014-07-22 Jun-jie Chen , Bo Zheng , Lei Tan

A prototype model of stock market is introduced and studied numerically. In this self-organized system, we consider only the interaction among traders without external influences. Agents trade according to their own strategy, to accumulate…

Statistical Mechanics · Physics 2009-10-30 G. Caldarelli , M. Marsili , Y. -C. Zhang

We study how the phenomenon of contagion can take place in the network of the world's stock exchanges due to the behavioral trait "blindeness to small changes". On large scale individual, the delay in the collective response may…

General Finance · Quantitative Finance 2016-02-25 Lucia Bellenzier , Jørgen Vitting Andersen , Giulia Rotundo

A deterministic system of coupled maps is proposed as a model for economic activity among interacting agents. The values of the maps represent the wealth of the agents. The dynamics of the system is controlled by two parameters. One…

Chaotic Dynamics · Physics 2008-12-02 J. R. Sanchez , J. Gonzalez-Estevez , R. Lopez-Ruiz , M. G. Cosenza

Responsibility in complex networks extends beyond direct actions: players should also bear responsibility for the indirect effects within their supply chains or network. We introduce a novel framework to allocate responsibility for indirect…

Theoretical Economics · Economics 2025-09-26 Rosa van den Ende , Dylan Laplace Mermoud

A dynamic factor model with a mixture distribution of the loadings is introduced and studied for multivariate, possibly high-dimensional time series. The correlation matrix of the model exhibits a block structure, reminiscent of correlation…

Methodology · Statistics 2023-07-20 Shankar Bhamidi , Dhruv Patel , Vladas Pipiras , Guorong Wu

We present an investment model integrated with trust-reputation mechanisms where agents interact with each other to establish investment projects. We investigate the establishment of investment projects, the influence of the interaction…

Social and Information Networks · Computer Science 2015-03-19 J. -Emeterio Navarro-Barrientos