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We investigate the dynamics of correlations present between pairs of industry indices of US stocks traded in US markets by studying correlation based networks and spectral properties of the correlation matrix. The study is performed by…

Statistical Finance · Quantitative Finance 2015-06-16 Giuseppe Buccheri , Stefano Marmi , Rosario N. Mantegna

Manipulation is an important issue for both developed and emerging stock markets. For the study of manipulation, it is critical to analyze investor behavior in the stock market. In this paper, an analysis of the full transaction records of…

Trading and Market Microstructure · Quantitative Finance 2011-10-12 Xiao-Qian Sun , Xue-Qi Cheng , Hua-Wei Shen , Zhao-Yang Wang

An algorithm for efficiently calculating the expected size of single-seed cascade dynamics on networks is proposed and tested. The expected size is a time-dependent quantity and so enables the identification of nodes who are the most…

Physics and Society · Physics 2025-05-01 James P. Gleeson , Ailbhe Cassidy , Daniel Giles , Ali Faqeeh

Based on the daily data of American and Chinese stock markets, the dynamic behavior of a financial network with static and dynamic thresholds is investigated. Compared with the static threshold, the dynamic threshold suppresses the large…

Statistical Finance · Quantitative Finance 2015-05-18 Tian Qiu , Bo Zheng , Guang Chen

Market timing is an investment technique that tries to continuously switch investment into assets forecast to have better returns. What is the likelihood of having a successful market timing strategy? With an emphasis on modeling…

Portfolio Management · Quantitative Finance 2018-07-20 Guy Metcalfe

The temporal changes in complex systems of interactions have excited the research community in recent years as they encompass understandings on their dynamics and evolution. From the collective dynamics of organizations and online…

Social and Information Networks · Computer Science 2020-04-15 Hadar Miller , Osnat Mokryn

We propose a conceptually novel method of reconstructing the topology of dynamical networks. By examining the correlation between the variable of one node and the derivative of another node, we derive a simple matrix equation yielding the…

Data Analysis, Statistics and Probability · Physics 2015-06-11 Zoran Levnajić

A dynamical system is controllable if by imposing appropriate external signals on a subset of its nodes, it can be driven from any initial state to any desired state in finite time. Here we study the impact of various network…

Physics and Society · Physics 2013-01-16 Márton Pósfai , Yang-Yu Liu , Jean-Jacques Slotine , Albert-László Barabási

We demonstrate that the gain/loss asymmetry observed for stock indices vanishes if the temporal dependence structure is destroyed by scrambling the time series. We also show that an artificial index constructed by a simple average of a…

Statistical Finance · Quantitative Finance 2009-11-24 Johannes Vitalis Siven , Jeffrey Todd Lins

The analysis of temporal networks heavily depends on the analysis of time-respecting paths. However, before being able to model and analyze the time-respecting paths, we have to infer the timescales at which the temporal edges influence…

Physics and Society · Physics 2023-01-30 Luka V. Petrović , Anatol Wegner , Ingo Scholtes

In order to emphasize cross-correlations for fluctuations in major market places, series of up and down spins are built from financial data. Patterns frequencies are measured, and statistical tests performed. Strong cross-correlations are…

Statistical Mechanics · Physics 2009-10-31 N. Vandewalle , Ph. Boveroux , F. Brisbois

We address the problem of link reciprocity, the non-random presence of two mutual links between pairs of vertices. We propose a new measure of reciprocity that allows the ordering of networks according to their actual degree of correlation…

Disordered Systems and Neural Networks · Physics 2007-05-23 Diego Garlaschelli , Maria I. Loffredo

We present a physics-inspired method for inferring dynamic rankings in directed temporal networks - networks in which each directed and timestamped edge reflects the outcome and timing of a pairwise interaction. The inferred ranking of each…

With the daily and minutely data of the German DAX and Chinese indices, we investigate how the return-volatility correlation originates in financial dynamics. Based on a retarded volatility model, we may eliminate or generate the…

Statistical Finance · Quantitative Finance 2012-02-03 J. Shen , B. Zheng

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

In this Letter, we empirically study the influence of reciprocal links, in order to understand its role in affecting the structure and function of directed social networks. Experimental results on two representative datesets, Sina Weibo and…

Physics and Society · Physics 2015-06-16 Yu-Xiao Zhu , Xiao-Guang Zhang , Gui-Quan Sun , Ming Tang , Tao Zhou , Zi-Ke Zhang

The financial industry poses great challenges with risk modeling and profit generation. These entities are intricately tied to the sophisticated prediction of stock movements. A stock forecaster must untangle the randomness and…

Statistical Finance · Quantitative Finance 2023-09-14 Luke Sanborn , Matthew Sahagun

Social dynamics on a network may be accelerated or decelerated depending on which pairs of individuals in the network communicate early and which pairs do later. The order with which the links in a given network are sequentially used, which…

Physics and Society · Physics 2016-03-18 Naoki Masuda

In multivariate time series systems, lead-lag relationships reveal dependencies between time series when they are shifted in time relative to each other. Uncovering such relationships is valuable in downstream tasks, such as control,…

Statistical Finance · Quantitative Finance 2023-09-19 Yichi Zhang , Mihai Cucuringu , Alexander Y. Shestopaloff , Stefan Zohren

Recently the interest of researchers has shifted from the analysis of synchronous relationships of financial instruments to the analysis of more meaningful asynchronous relationships. Both of those analyses are concentrated only on…

Statistical Finance · Quantitative Finance 2014-06-18 Paweł Fiedor
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