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A detailed analysis of correlation between stock returns at high frequency is compared with simple models of random walks. We focus in particular on the dependence of correlations on time scales - the so-called Epps effect. This provides a…

Trading and Market Microstructure · Quantitative Finance 2015-05-20 Iacopo Mastromatteo , Matteo Marsili , Patrick Zoi

This manuscript reports a stochastic dynamical scenario whose associated stationary probability density function is exactly a previously proposed one to adjust high-frequency traded volume distributions. This dynamical conjecture,…

Statistical Mechanics · Physics 2009-11-11 Silvio M. Duarte Queiros

The observable outputs of many complex dynamical systems consist in time series exhibiting autocorrelation functions of great diversity of behaviors, including long-range power-law autocorrelation functions, as a signature of interactions…

Data Analysis, Statistics and Probability · Physics 2019-09-05 Pedro Carpena , Pedro A. Bernaola-Galván , Manuel Gómez-Extremera , Ana V. Coronado

Price fluctuations in financial markets can be characterized by L\'evy's stable distribution, which is supported by the generalized central limit system. When the stable parameters were estimated from four different stock markets in long…

Statistical Finance · Quantitative Finance 2018-02-21 Takumi Fukunaga , Ken Umeno

We develop a theoretical trading conditioning model subject to price volatility and return information in terms of market psychological behavior, based on analytical transaction volume-price probability wave distributions in which we use…

Trading and Market Microstructure · Quantitative Finance 2010-02-09 Leilei Shi , Yiwen Wang , Ding Chen , Liyan Han , Yan Piao , Chengling Gou

We give a stochastic microscopic modelling of stock markets driven by continuous double auction. If we take into account the mimetic behavior of traders, when they place limit order, our virtual markets shows the power-law tail of the…

Computational Physics · Physics 2009-11-13 Jun-ichi Maskawa

We analyze the behavior of an ensemble of inertial particles in a one-dimensional smooth Gaussian velocity field, in the limit of large inertia, but considering a finite correlation time for the random field. We derive in this limit a…

Statistical Mechanics · Physics 2009-11-13 Piero Olla , Raffaella Vuolo

A non-fungible token (NFT) market is a new trading invention based on the blockchain technology which parallels the cryptocurrency market. In the present work we study capitalization, floor price, the number of transactions, the…

Computational Finance · Quantitative Finance 2024-01-17 Paweł Szydło , Marcin Wątorek , Jarosław Kwapień , Stanisław Drożdż

In complex systems such as turbulent flows and financial markets, the dynamics in long and short time-lags, signaled by Gaussian and fat-tailed statistics, respectively, calls for a unified description. To address this issue we analyze a…

Statistical Finance · Quantitative Finance 2008-12-02 A. A. G. Cortines , R. Riera , C. Anteneodo

We consider fluctuations of the dissipated energy in nonlinear driven diffusive systems subject to bulk dissipation and boundary driving. With this aim, we extend the recently-introduced macroscopic fluctuation theory to nonlinear driven…

Statistical Mechanics · Physics 2013-10-29 P. I. Hurtado , A. Lasanta , A. Prados

In this work we introduce correlated random walks on $\Z$. When picking suitably at random the coefficient of correlation, and taking the average over a large number of walks, we obtain a discrete Gaussian process, whose scaling limit is…

Probability · Mathematics 2007-05-23 Enriquez Nathanael

We propose a novel machine learning approach for forecasting the distribution of stock returns using a rich set of firm-level and market predictors. Our method combines a two-stage quantile neural network with spline interpolation to…

General Finance · Quantitative Finance 2025-08-05 Jozef Barunik , Martin Hronec , Ondrej Tobek

We present a model of financial markets originally proposed for a turbulent flow, as a dynamic basis of its intermittent behavior. Time evolution of the price change is assumed to be described by Brownian motion in a power-law potential,…

Statistical Mechanics · Physics 2009-11-07 Naoki Kozuki , Nobuko Fuchikami

A recent theorem giving the initial behavior of very short-time fluctuations of particle displacements in classical many-body systems is discussed. It has applications to equilibrium and non-equilibrium systems, one of which is a series…

Statistical Mechanics · Physics 2007-07-31 Ramses van Zon , S. S. Ashwin , E. G. D. Cohen

Using available data from the New York stock market (NYSM) we test four different bi-parametric models to fit the correspondent volume-price distributions at each $10$-minute lag: the Gamma distribution, the inverse Gamma distribution, the…

Statistical Finance · Quantitative Finance 2014-10-30 Paulo Rocha , Frank Raischel , João P. da Cruz , Pedro G. Lind

The stochastic properties of variables whose addition leads to $q$-Gaussian distributions $G_q(x)=[1+(q-1)x^2]_+^{1/(1-q)}$ (with $q\in\mathbb{R}$ and where $[f(x)]_+=max\{f(x),0\}$) as limit law for a large number of terms are…

Statistical Mechanics · Physics 2009-11-10 C. Anteneodo

The problem of non-stationarity in financial markets is discussed and related to the dynamic nature of price volatility. A new measure is proposed for estimation of the current asset volatility. A simple and illustrative explanation is…

Statistical Finance · Quantitative Finance 2016-09-08 Sergey S. Stepanov

Financial markets can be seen as complex systems in non-equilibrium steady state, one of whose most important properties is the distribution of price fluctuations. Recently, there have been assertions that this distribution is qualitatively…

Physics and Society · Physics 2008-12-02 Raj Kumar Pan , Sitabhra Sinha

We consider random vectors drawn from a multivariate normal distribution and compute the sample statistics in the presence of non-stationary correlations. For this purpose, we construct an ensemble of random correlation matrices and average…

Statistical Finance · Quantitative Finance 2014-06-17 Desislava Chetalova , Thilo A. Schmitt , Rudi Schäfer , Thomas Guhr

We address the problem of long-range memory in the financial markets. There are two conceptually different ways to reproduce power-law decay of auto-correlation function: using fractional Brownian motion as well as non-linear stochastic…

Statistical Finance · Quantitative Finance 2017-05-24 V. Gontis , A. Kononovicius