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We propose a new unsupervised learning method for clustering a large number of time series based on a latent factor structure. Each cluster is characterized by its own cluster-specific factors in addition to some common factors which impact…

Statistics Theory · Mathematics 2022-09-09 Bo Zhang , Guangming Pan , Qiwei Yao , Wang Zhou

Time series clustering is an essential machine learning task with applications in many disciplines. While the majority of the methods focus on time series taking values on the real line, very few works consider time series defined on the…

Applications · Statistics 2024-02-15 Ángel López-Oriona , Ying Sun , Rosa M. Crujeiras

Networks of companies can be constructed by using return correlations. A crucial issue in this approach is to select the relevant correlations from the correlation matrix. In order to study this problem, we start from an empty graph with no…

Statistical Mechanics · Physics 2009-11-10 J. -P. Onnela , K. Kaski , J. Kertesz

We propose a clustered local projection (clustered LP) method to estimate impulse response functions in a class of time-varying models where parameter variation is linked to a low-dimensional matrix of observables. We show that the…

Econometrics · Economics 2026-05-04 Ana Maria Herrera , Elena Pesavento , Alessia Scudiero

We analyze structure of the world foreign currency exchange (FX) market viewed as a network of interacting currencies. We analyze daily time series of FX data for a set of 63 currencies, including gold, silver and platinum. We group…

Statistical Finance · Quantitative Finance 2009-06-03 Jaroslaw Kwapien , Sylwia Gworek , Stanislaw Drozdz , Andrzej Gorski

Understanding the dependence structure of asset returns is fundamental in risk assessment and is particularly relevant in a portfolio diversification strategy. We propose a clustering approach where evidence accumulated in a multiplicity of…

Applications · Statistics 2025-10-08 Andrea Mecchina , Roberta Pappadà , Nicola Torelli

The collective phenomena of a liquid market is characterized in terms of a particle system scenario. This physical analogy enables us to disentangle intrinsic features from purely stochastic ones. The latter are the result of environmental…

Disordered Systems and Neural Networks · Physics 2008-12-02 G. Cuniberti , M. Porto , H. E. Roman

We investigate a class of stochastic aggregation processes involving two types of clusters: active and passive. The mass distribution is obtained analytically for several aggregation rates. When the aggregation rate is constant, we find…

Statistical Mechanics · Physics 2007-05-23 P. L. Krapivsky , E. Ben-Naim

We empirically analyze the scaling properties of daily Foreign Exchange rates, Stock Market indices and Bond futures across different financial markets. We study the scaling behaviour of the time series by using a generalized Hurst exponent…

Statistical Mechanics · Physics 2008-12-02 T. Di Matteo , T. Aste , M. M. Dacorogna

A novel methodology is proposed for clustering multivariate time series data using energy distance defined in Sz\'ekely and Rizzo (2013). Specifically, a dissimilarity matrix is formed using the energy distance statistic to measure…

Methodology · Statistics 2024-03-13 Richard A. Davis , Leon Fernandes , Konstantinos Fokianos

We compare some methods recently used in the literature to detect the existence of a certain degree of common behavior of stock returns belonging to the same economic sector. Specifically, we discuss methods based on random matrix theory…

Disordered Systems and Neural Networks · Physics 2008-12-02 C. Coronnello , M. Tumminello , F. Lillo , S. Miccichè , R. N. Mantegna

There have been rapid developments in model-based clustering of graphs, also known as block modelling, over the last ten years or so. We review different approaches and extensions proposed for different aspects in this area, such as the…

Machine Learning · Statistics 2020-01-01 Clement Lee , Darren J Wilkinson

Prices of commodities or assets produce what is called time-series. Different kinds of financial time-series have been recorded and studied for decades. Nowadays, all transactions on a financial market are recorded, leading to a huge amount…

Statistical Finance · Quantitative Finance 2015-05-13 A. Chakraborti , M. Patriarca , M. S. Santhanam

Recent highly cited research uses time-series evidence to argue the decline in interest rates led to a large rise in economic profits and markups. We show the size of these estimates is sensitive to the sample start date: The rise in…

General Economics · Economics 2023-10-17 Anton Bobrov , James Traina

The study of human dynamics has attracted much interest from many fields recently. In this paper, the fractal characteristic of human behaviors is investigated from the perspective of time series constructed with the amount of library…

Physics and Society · Physics 2015-05-20 Chao Fan , Jin-Li Guo , Yi-Long Zha

We review some methods recently used in the literature to detect the existence of a certain degree of common behavior of stock returns belonging to the same economic sector. Specifically, we discuss methods based on random matrix theory and…

Physics and Society · Physics 2021-08-25 C. Coronnello , M. Tumminello , F. Lillo , S. Micciche` , R. N. Mantegna

The complex networks approach has been gaining popularity in analysing investor behaviour and stock markets, but within this approach, initial public offerings (IPO) have barely been explored. We fill this gap in the literature by analysing…

Trading and Market Microstructure · Quantitative Finance 2019-11-07 Margarita Baltakienė , Kęstutis Baltakys , Juho Kanniainen , Dino Pedreschi , Fabrizio Lillo

We quantify the amount of information filtered by different hierarchical clustering methods on correlations between stock returns comparing it with the underlying industrial activity structure. Specifically, we apply, for the first time to…

Statistical Finance · Quantitative Finance 2023-07-19 Nicolo Musmeci , Tomaso Aste , Tiziana Di Matteo

In this paper we study empirically the Forward Rate Curve (FRC) of 5 different currencies. We confirm and extend the findings of our previous investigation of the U.S. Forward Rate Curve. In particular, the average FRC follows a square-root…

Condensed Matter · Physics 2007-05-23 Andrew Matacz , Jean-Philippe Bouchaud

The present study deals with the analysis and mapping of Swiss franc interest rates. Interest rates depend on time and maturity, defining term structure of the interest rate curves (IRC). In the present study IRC are considered in a…

Statistical Finance · Quantitative Finance 2009-11-13 M. Kanevski , M. Maignan , A. Pozdnoukhov , V. Timonin