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Using data from 92 indices of stock exchanges worldwide, I analize the cluster formation and evolution from 2007 to 2010, which includes the Subprime Mortgage Crisis of 2008, using asset graphs based on distance thresholds. I also study the…

Statistical Finance · Quantitative Finance 2012-01-24 Leonidas Sandoval Junior

The data mining technique of time series clustering is well established in many fields. However, as an unsupervised learning method, it requires making choices that are nontrivially influenced by the nature of the data involved. The aim of…

Econometrics · Economics 2018-07-19 Iwo Augustyński , Paweł Laskoś-Grabowski

We develop a new method to find the number of volatility regimes in a nonstationary financial time series by applying unsupervised learning to its volatility structure. We use change point detection to partition a time series into locally…

Statistical Finance · Quantitative Finance 2022-11-15 Arjun Prakash , Nick James , Max Menzies , Gilad Francis

This note outlines a method for clustering time series based on a statistical model in which volatility shifts at unobserved change-points. The model accommodates some classical stylized features of returns and its relation to GARCH is…

Methodology · Statistics 2019-06-26 Nick Whiteley

This paper studies the 28 time series of Libor rates, classified in seven maturities and four currencies), during the last 14 years. The analysis was performed using a novel technique in financial economics: the Complexity-Entropy Causality…

Statistical Finance · Quantitative Finance 2016-03-10 Aurelio F. Bariviera , M. Belen Guercio , Lisana B. Martinez , Osvaldo A. Rosso

Sequence analysis is an increasingly popular approach for analysing life courses represented by ordered collections of activities experienced by subjects over time. Here, we analyse a survey data set containing information on the career…

The cross-correlations between the exchange rate fluctuations of 74 currencies over the period 1995-2012 are analyzed in this paper. The eigenvalue distribution of the cross-correlation matrix exhibits a bulk which approximately matches the…

Statistical Finance · Quantitative Finance 2013-05-02 Sitabhra Sinha , Uday Kovur

Using data from world stock exchange indices prior to and during periods of global financial crises, clusters and networks of indices are built for different thresholds and diverse periods of time, so that it is then possible to analyze how…

Statistical Finance · Quantitative Finance 2014-09-02 Leonidas Sandoval Junior

We investigate the tendency for financial instruments to form clusters when there are multiple factors influencing the correlation structure. Specifically, we consider a stock portfolio which contains companies from different industrial…

Statistical Finance · Quantitative Finance 2015-05-08 Gordon J. Ross

This paper builds the clustering model of measures of market microstructure features which are popular in predicting stock returns. In a 10-second time-frequency, we study the clustering structure of different measures to find out the best…

Statistical Finance · Quantitative Finance 2021-12-28 Liao Zhu , Ningning Sun , Martin T. Wells

This paper presents the first time series clustering benchmark utilizing all time series datasets currently available in the University of California Riverside (UCR) archive -- the state of the art repository of time series data.…

Machine Learning · Computer Science 2021-08-26 Ali Javed , Byung Suk Lee , Dona M. Rizzo

This paper analyzes correlations in patterns of trading of different members of the London Stock Exchange. The collection of strategies associated with a member institution is defined by the sequence of signs of net volume traded by that…

Statistical Finance · Quantitative Finance 2009-11-13 Ilija I. Zovko , J. Doyne Farmer

Long memory and volatility clustering are two stylized facts frequently related to financial markets. Traditionally, these phenomena have been studied based on conditionally heteroscedastic models like ARCH, GARCH, IGARCH and FIGARCH, inter…

Statistical Finance · Quantitative Finance 2009-11-13 Sonia R. Bentes , Rui Menezes , Diana A. Mendes

As a quantitative characterization of the complicated economy, Macroeconomic Variables (MEVs), including GDP, inflation, unemployment, income, spending, interest rate, etc., are playing a crucial role in banks' portfolio management and…

Risk Management · Quantitative Finance 2024-05-22 Garvit Arora , Shubhangi Tiwari , Ying Wu , Xuan Mei

Time series, as one of the most fundamental representations of sequential data, has been extensively studied across diverse disciplines, including computer science, biology, geology, astronomy, and environmental sciences. The advent of…

Machine Learning · Computer Science 2024-12-31 John Paparrizos , Fan Yang , Haojun Li

By analyzing a large data set of daily returns with data clustering technique, we identify economic sectors as clusters of assets with a similar economic dynamics. The sector size distribution follows Zipf's law. Secondly, we find that…

Statistical Mechanics · Physics 2008-12-02 Matteo Marsili

We propose a novel method to quantify the clustering behavior in a complex time series and apply it to a high-frequency data of the financial markets. We find that regardless of used data sets, all data exhibits the volatility clustering…

Statistical Finance · Quantitative Finance 2008-12-02 Gabjin Oh , Seunghwan Kim , Cheoljun Eom , Taehyuk Kim

Cluster indices describe extremal behaviour of stationary time series. We consider runs estimators of cluster indices. Using a modern theory of multivariate, regularly varying time series, we obtain central limit theorems under conditions…

Statistics Theory · Mathematics 2021-09-07 Youssouph Cissokho , Rafal Kulik

Firms having similar business activities are correlated. We analyze two different cross-correlation matrices C constructed from (i) 30-min price fluctuations of 1000 US stocks for the 2-year period 1994-95 and (ii) 1-day price fluctuations…

Statistical Mechanics · Physics 2008-12-02 Parameswaran Gopikrishnan , Bernd Rosenow , Vasiliki Plerou , H. Eugene Stanley

We introduce a mathematical criterion defining the bubbles or the crashes in financial market price fluctuations by considering exponential fitting of the given data. By applying this criterion we can automatically extract the periods in…

Physics and Society · Physics 2009-11-13 Kota Watanabe , Hideki Takayasu , Misako Takayasu