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This paper investigates the dynamics of in the S&P500 index from daily returns for the last 30 years. Using a stochastic geometry technique, each S&P500 yearly batch of data is embedded in a subspace that can be accurately described by a…

Statistical Mechanics · Physics 2016-08-16 Tanya Araújo , Francisco Louçã

The stock market's reaction to the external risk shock is closely related to the cross-shareholding network structure. This paper takes the public information of listed companies in the A-share securities market as the primary sample to…

General Economics · Economics 2022-12-06 Yujue Wang

We use rank correlations as distance functions to establish the interconnectivity between stock returns, building weighted signed networks for the stocks of seven European countries, the US and Japan. We establish the theoretical…

Statistical Finance · Quantitative Finance 2021-04-14 E. Ferreira , S. Orbe , J. Ascorbebeitia , B. Álvarez Pereira , E. Estrada

This study examines how institutional differences and external crises shape volatility dynamics in emerging Asian stock markets. Using daily stock index returns for Indonesia, Malaysia, and the Philippines from 2010 to 2024, we estimate…

Statistical Finance · Quantitative Finance 2025-10-21 Junlin Yang

Catastrophic events, though rare, do occur and when they occur, they have devastating effects. It is, therefore, of utmost importance to understand the complexity of the underlying dynamics and signatures of catastrophic events, such as…

General Finance · Quantitative Finance 2018-09-25 Anirban Chakraborti , Kiran Sharma , Hirdesh K. Pharasi , Sourish Das , Rakesh Chatterjee , Thomas H. Seligman

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

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

The study of the critical dynamics in complex systems is always interesting yet challenging. Here, we choose financial market as an example of a complex system, and do a comparative analyses of two stock markets - the S&P 500 (USA) and…

Statistical Finance · Quantitative Finance 2018-11-14 Hirdesh K. Pharasi , Kiran Sharma , Rakesh Chatterjee , Anirban Chakraborti , Francois Leyvraz , Thomas H. Seligman

This paper captures irregularities in financial time series data, particularly stock prices, in the presence of COVID-19 shock. We conjectured that jumps and irregularities are embedded in stock data due to the pandemic shock, which brings…

Computational Engineering, Finance, and Science · Computer Science 2023-11-23 Leonard Mushunje , David Allen , Shelton Peiris

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

This paper explores the mechanisms behind extreme financial events, specifically market crashes, by employing the theoretical framework of phase transitions. We focus on endogenous crashes, driven by internal market dynamics, and model…

Mathematical Finance · Quantitative Finance 2024-08-14 Revant Nayar , Minhajul Islam

Dealing with structural breaks is an important step in most, if not all, empirical economic research. This is particularly true in panel data comprised of many cross-sectional units, such as individuals, firms or countries, which are all…

Econometrics · Economics 2021-11-05 Yiannis Karavias , Paresh Narayan , Joakim Westerlund

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

Stock market indices are volatile by nature, and sudden shocks are known to affect volatility patterns. The autoregressive conditional heteroskedasticity (ARCH) and generalized ARCH (GARCH) models neglect structural breaks triggered by…

Methodology · Statistics 2023-10-05 Tzung Hsuen Khoo , Dharini Pathmanathan , Philipp Otto , Sophie Dabo-Niang

This paper investigates the dynamics of stocks in the S&P500 index for the last 30 years. Using a stochastic geometry technique, we investigate the evolution of the market space and define a new measure for that purpose, which is a robust…

Physics and Society · Physics 2016-08-16 Tanya Araújo , Francisco Louçã

We study stock market instability by using cross-correlations constructed from the return time series of 366 stocks traded on the Tokyo Stock Exchange from January 5, 1998 to December 30, 2013. To investigate the dynamical evolution of the…

Statistical Finance · Quantitative Finance 2017-12-19 Tetsuya Takaishi

Housing markets play a crucial role in economies and the collapse of a real-estate bubble usually destabilizes the financial system and causes economic recessions. We investigate the systemic risk and spatiotemporal dynamics of the US…

Statistical Finance · Quantitative Finance 2013-12-31 Hao Meng , Wen-Jie Xie , Zhi-Qiang Jiang , Boris Podobnik , Wei-Xing Zhou , H. Eugene Stanley

Correlations among stock returns during volatile markets differ substantially compared to those from quieter markets. During times of financial crisis, it has been observed that traditional dependency in global markets breaks down. However,…

Applications · Statistics 2019-09-13 Malay Bhattacharyya , Siva Rajesh Kasa

Financial crises emerge when structural vulnerabilities accumulate across sectors, markets, and investor behavior. Predicting these systemic transitions is challenging because they arise from evolving interactions between market…

Risk Management · Quantitative Finance 2025-12-22 Sandeep Neela

This paper investigates the structural dynamics of stock market volatility through the Financial Chaos Index, a tensor- and eigenvalue-based measure designed to capture realized volatility via mutual fluctuations among asset prices.…

Statistical Finance · Quantitative Finance 2025-04-29 Masoud Ataei
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