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In this study, we propose a new multi-objective portfolio optimization with idiosyncratic and systemic risks for financial networks. The two risks are measured by the idiosyncratic variance and the network clustering coefficient derived…

Portfolio Management · Quantitative Finance 2021-11-23 Yajie Yang , Longfeng Zhao , Lin Chen , Chao Wang , Jihui Han

We develop new methods based on graph motifs for graph clustering, allowing more efficient detection of communities within networks. We focus on triangles within graphs, but our techniques extend to other clique motifs as well. Our…

Data Structures and Algorithms · Computer Science 2017-02-07 Charalampos Tsourakakis , Jakub Pachocki , Michael Mitzenmacher

Multiplex networks are a powerful framework for representing systems with multiple types of interactions among a common set of entities. Understanding their structure requires statistical tools capturing higher-order cross-layer…

Statistics Theory · Mathematics 2026-03-30 Karl Sawaya , Sofia Olhede

The strategic orchestration of football matchplays profoundly influences game outcomes, motivating a surge in research aimed at uncovering tactical nuances through social network analysis. In this paper, we delve into the microscopic…

Physics and Society · Physics 2024-08-16 Ming-Xia Li , Li-Gong Xu , Wei-Xing Zhou

Several natural and theoretical networks can be broken down into smaller portions, or subgraphs corresponding to neighborhoods. The more frequent of these neighborhoods can then be understood as motifs of the network, being therefore…

Physics and Society · Physics 2022-04-21 Guilherme S. Domingues , Eric K. Tokuda , Luciano da F. Costa

In the past years statistical physics has been successfully applied for complex networks modelling. In particular, it has been shown that the maximum entropy principle can be exploited in order to construct graph ensembles for real-world…

We present a novel methodology for modeling and forecasting multivariate realized volatilities using customized graph neural networks to incorporate spillover effects across stocks. The proposed model offers the benefits of incorporating…

Statistical Finance · Quantitative Finance 2023-08-04 Chao Zhang , Xingyue Pu , Mihai Cucuringu , Xiaowen Dong

To successfully implement the Sustainable Development Goals (SDGs), it is necessary to understand the process by which the achievement of one goal has a spillover effect in a development system. While existing research studies synergies and…

Dynamical Systems · Mathematics 2026-03-16 Gaurav Kottari , Niteesh Sahni

Over the last two decades, network theory has shown to be a fruitful paradigm in understanding the organization and functioning of real-world complex systems. One technique helpful to this endeavor is identifying functionally influential…

Physics and Society · Physics 2022-01-24 Francesco Picciolo , Franco Ruzzenenti , Petter Holme , Rossana Mastrandrea

In this study, we investigate how specific micro interaction structures (motifs) affect the occurrence of tipping cascades on networks of stylized tipping elements. We compare the properties of cascades in Erd\"os-R\'enyi networks and an…

Adaptation and Self-Organizing Systems · Physics 2020-11-11 Nico Wunderling , Benedikt Stumpf , Jonathan Krönke , Arie Staal , Obbe A. Tuinenburg , Ricarda Winkelmann , Jonathan F. Donges

Dynamic evolving networks capture temporal relations in domains such as social networks, communication networks, and financial transaction networks. In such networks, temporal motifs, which are repeated sequences of time-stamped…

Social and Information Networks · Computer Science 2022-01-03 Alexandra Porter , Baharan Mirzasoleiman , Jure Leskovec

This paper develops a unified framework that links firm-level predictive signals, cross-asset spillovers, and the stochastic discount factor (SDF). Signals and spillovers are jointly estimated by maximizing the Sharpe ratio, yielding an…

Computational Finance · Quantitative Finance 2026-02-25 Doron Avramov , Xin He

In the aftermath of the financial crisis, the growing literature on financial networks has widely documented the predictive power of topological characteristics (e.g. degree centrality measures) to explain the systemic impact or systemic…

General Finance · Quantitative Finance 2021-10-27 Yérali Gandica , Sophie Béreau , Jean-Yves Gnabo

Uncovering the risk transmitting path within economic sectors in China is crucial for understanding the stability of the Chinese economic system, especially under the current situation of the China-US trade conflicts. In this paper, we try…

Risk Management · Quantitative Finance 2020-02-24 Ying-Ying Shen , Zhi-Qiang Jiang , Jun-Chao Ma , Gang-Jin Wang , Wei-Xing Zhou

We present a systematic, trend-following strategy, applied to commodity futures markets, that combines univariate trend indicators with cross-sectional trend indicators that capture so-called {\em momentum spillover}, which can occur when…

Trading and Market Microstructure · Quantitative Finance 2025-01-14 Linze Li , William Ferreira

Stable and efficient food markets are crucial for global food security, yet international staple food markets are increasingly exposed to complex risks, including intensified risk contagion and escalating external uncertainties. This paper…

Econometrics · Economics 2025-01-28 Yun-Shi Dai , Peng-Fei Dai , Stéphane Goutte , Duc Khuong Nguyen , Wei-Xing Zhou

Signed networks, encoding both positive and negative interactions, are essential for modeling complex systems in social and financial domains. Sign prediction, which infers the sign of a target link, has wide-ranging practical applications.…

Cryptography and Security · Computer Science 2025-12-30 Yijun Ran , Si-Yuan Liu , Junjie Huang , Tao Jia , Xiao-Ke Xu

Connectedness measures the degree at which a time-series variable spills over volatility to other variables compared to the rate that it is receiving. The idea is based on the percentage of variance decomposition from one variable to the…

Econometrics · Economics 2024-05-07 Abdulnasser Hatemi-J

A determinant property of the structure of a biological network is the distribution of local connectivity patterns, i.e., network motifs. In this work, a method for creating directed, unweighted networks while promoting a certain…

Social and Information Networks · Computer Science 2016-07-29 Tuomo Mäki-Marttunen

We present a braided circuit topology framework for investigating topology and structural phase transitions in aggregates of semiflexible polymers. In the conventional approach to circuit topology, which specifically applies to single…

Soft Condensed Matter · Physics 2024-02-27 Jonas Berx , Alireza Mashaghi