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Collective behaviours taking place in financial markets reveal strongly correlated states especially during a crisis period. A natural hypothesis is that trend reversals are also driven by mutual influences between the different stock…

Statistical Finance · Quantitative Finance 2015-06-17 Thomas Bury

Effects connected with the world globalization affect also the financial markets. On a way towards quantifying the related characteristics we study the financial empirical correlation matrix of the 60 companies which both the Deutsche…

Statistical Mechanics · Physics 2009-10-31 S. Drozdz , F. Gruemmer , F. Ruf , J. Speth

Financial networks have become extremely useful in characterizing the structure of complex financial systems. Meanwhile, the time evolution property of the stock markets can be described by temporal networks. We utilize the temporal network…

Statistical Finance · Quantitative Finance 2018-07-04 Longfeng Zhao , Gang-Jin Wang , Mingang Wang , Weiqi Bao , Wei Li , H. Eugene Stanley

We review a resent {\em time-dependent} performance measure for economical time series -- the (optimal) investment horizon approach. For stock indices, the approach shows a pronounced gain-loss asymmetry that is {\em not} observed for the…

Physics and Society · Physics 2008-12-02 Ingve Simonsen , Anders Johansen , Mogens H. Jensen

According to the leading models in modern finance, the presence of intraday lead-lag relationships between financial assets is negligible in efficient markets. With the advance of technology, however, markets have become more sophisticated.…

Statistical Finance · Quantitative Finance 2014-01-03 Chester Curme , Michele Tumminello , Rosario N. Mantegna , H. Eugene Stanley , Dror Y. Kenett

The dynamic network of relationships among corporations underlies cascading economic failures including the current economic crisis, and can be inferred from correlations in market value fluctuations. We analyze the time dependence of the…

Statistical Finance · Quantitative Finance 2010-11-18 Dion Harmon , Blake Stacey , Yavni Bar-Yam , Yaneer Bar-Yam

We measure the influence of different time-scales on the dynamics of financial market data. This is obtained by decomposing financial time series into simple oscillations associated with distinct time-scales. We propose two new time-varying…

Statistical Finance · Quantitative Finance 2016-11-23 Noemi Nava , Tiziana Di Matteo , Tomaso Aste

We studied the effects of time correlation of subsequent patterns on the convergence of on-line learning by a feedforward neural network with backpropagation algorithm. By using chaotic time series as sequences of correlated patterns, we…

adap-org · Physics 2009-10-28 Tsuyoshi Hondou , Mitsuaki Yamamoto , Yasuji Sawada , Yoshihiro Hayakawa

Novel method of reconstructing dynamical networks from empirically measured time series is proposed. By examining the variable--derivative correlation of network node pairs, we derive a simple equation that directly yields the adjacency…

Data Analysis, Statistics and Probability · Physics 2012-10-09 Zoran Levnajić

The lack of studying the complex organization of directed network usually limits to the understanding of underlying relationship between network structures and functions. Structural controllability and structural predictability, two…

Physics and Society · Physics 2022-03-31 Fei Jing , Chuang Liu , Jian-Liang Wu , Zi-Ke Zhang

Financial stock returns correlations have been studied in the prism of random matrix theory, to distinguish the signal from the "noise". Eigenvalues of the matrix that are above the rescaled Marchenko Pastur distribution can be interpreted…

Statistical Finance · Quantitative Finance 2025-08-19 Ixandra Achitouv

Different measures have been proposed to predict whether individuals will adopt a new behavior in online social networks, given the influence produced by their neighbors. In this paper, we show one can achieve significant improvement over…

Social and Information Networks · Computer Science 2017-05-09 Ericsson Marin , Ruocheng Guo , Paulo Shakarian

Stock correlations is crucial to asset pricing, investor decision-making, and financial risk regulations. However, microscopic explanation based on agent-based modeling is still lacking. We here propose a model derived from minority game…

Computational Finance · Quantitative Finance 2018-03-26 Ming-Yuan Yang , Sai-Ping Li , Li-Xin Zhong , Fei Ren

We study the dynamics of the linear and non-linear serial dependencies in financial time series in a rolling window framework. In particular, we focus on the detection of episodes of statistically significant two- and three-point…

Statistical Finance · Quantitative Finance 2013-01-10 Milan Žukovič

Temporal networks are such networks where nodes and interactions may appear and disappear at various time scales. With the evidence of ubiquity of temporal networks in our economy, nature and society, it's urgent and significant to focus on…

Social and Information Networks · Computer Science 2014-01-15 Yujian Pan , Xiang Li

This paper proposes the cross-quantilogram to measure the quantile dependence between two time series. We apply it to test the hypothesis that one time series has no directional predictability to another time series. We establish the…

Statistics Theory · Mathematics 2018-01-23 Heejoon Han , Oliver Linton , Tatsushi Oka , Yoon-Jae Whang

The cross correlation matrix between equities comprises multiple interactions between traders with varying strategies and time horizons. In this paper, we use the Maximum Overlap Discrete Wavelet Transform to calculate correlation matrices…

Statistical Finance · Quantitative Finance 2010-01-05 Thomas Conlon , Heather J. Ruskin , Martin Crane

Timeout control is a simple mechanism used when direct feedback is either impossible, unreliable, or too costly, as is often the case in distributed systems. Its effectiveness is determined by a timeout threshold parameter and our goal is…

Optimization and Control · Mathematics 2015-03-20 Ali Kebarighotbi , Christos G. Cassandras

The decision process requires information about the present state of the system, but in economy acquiring data and processing them is an expensive and time consuming process. Therefore the state of the system is measured and announced at…

Physics and Society · Physics 2007-09-21 Janusz Miskiewicz

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