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In this article we propose a novel measure of systemic risk in the context of financial networks. To this aim, we provide a definition of systemic risk which is based on the structure, developed at different levels, of clustered neighbours…

Physics and Society · Physics 2020-07-30 Roy Cerqueti , Gian Paolo Clemente , Rosanna Grassi

As a typical representation of complex networks studied relatively thoroughly, financial market presents some special details, such as its nonconservation and opinions spreading. In this model, agents congregate to form some clusters, which…

Other Condensed Matter · Physics 2007-05-23 Jie Wang , Chun-Xia Yang , Pei-Ling Zhou , Ying-Di Jin , Tao Zhou , Bing-Hong Wang

Clustering is the technique to partition data according to their characteristics. Data that are similar in nature belong to the same cluster [1]. There are two types of evaluation methods to evaluate clustering quality. One is an external…

Machine Learning · Computer Science 2024-09-05 Anupriya Vysala , Joseph Gomes

Different investment strategies are adopted in short-term and long-term depending on the time scales, even though time scales are adhoc in nature. Empirical mode decomposition based Hurst exponent analysis and variance technique have been…

Statistical Finance · Quantitative Finance 2021-03-10 Ajit Mahata , Md Nurujjaman

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

A microscopic model of financial markets is considered, consisting of many interacting agents (spins) with global coupling and discrete-time thermal bath dynamics, similar to random Ising systems. The interactions between agents change…

Statistical Mechanics · Physics 2012-08-27 Andrzej Krawiecki , Janusz A. Holyst , and Dirk Helbing

Human behavior modeling deals with learning and understanding behavior patterns inherent in humans' daily routines. Existing pattern mining techniques either assume human dynamics is strictly periodic, or require the number of modes as…

Machine Learning · Computer Science 2021-10-26 Rohan Kabra , Divya Saxena , Dhaval Patel , Jiannong Cao

We consider a mean-reverting stochastic volatility model which satisfies some relevant stylized facts of financial markets. We introduce an algorithm for the detection of peaks in the volatility profile, that we apply to the time series of…

Statistical Finance · Quantitative Finance 2016-12-05 Mario Bonino , Matteo Camelia , Paolo Pigato

A clustering procedure, based on the Hausdorff distance, is introduced and tested on the financial time series of the Dow Jones Industrial Average (DJIA) index.

Physics and Society · Physics 2008-12-02 Nicolas Basalto , Roberto Bellotti , Francesco De Carlo , Paolo Facchi , Saverio Pascazio

The widespread adoption of online courses opens opportunities for the analysis of learner behaviour and for the optimisation of web-based material adapted to observed usage. Here we introduce a mathematical framework for the analysis of…

Social and Information Networks · Computer Science 2019-07-17 Robert L. Peach , Sophia N. Yaliraki , David Lefevre , Mauricio Barahona

We investigate financial market correlations using random matrix theory and principal component analysis. We use random matrix theory to demonstrate that correlation matrices of asset price changes contain structure that is incompatible…

Statistical Finance · Quantitative Finance 2015-03-17 Daniel J. Fenn , Mason A. Porter , Stacy Williams , Mark McDonald , Neil F. Johnson , Nick S. Jones

Financial data has been extensively studied for correlations using Pearson's cross-correlation coefficient {\rho} as the point of departure. We employ an estimator based on recurrence plots --- the Correlation of Probability of Recurrence…

Statistical Finance · Quantitative Finance 2013-06-05 B. Goswami , G. Ambika , N. Marwan , J. Kurths

We analyze the hitting time distributions of stock price returns in different time windows, characterized by different levels of noise present in the market. The study has been performed on two sets of data from US markets. The first one is…

Physics and Society · Physics 2009-11-13 Davide Valenti , Bernardo Spagnolo , Giovanni Bonanno

The intra-cluster correlation coefficient (ICC) plays an important role while designing the cluster randomized trials (CRTs). Often optimal CRTs are designed assuming that the magnitude of the ICC is constant across the clusters. However,…

Computation · Statistics 2019-02-21 Satya Prakash Singh , Pradeep Yadav

The study of pulsar glitch phenomena serves as a valuable probe into the dynamic properties of matter under extreme high-density conditions, offering insights into the physics within neutron stars. Providing theoretical explanations for the…

High Energy Astrophysical Phenomena · Physics 2025-01-07 Pei-Xin Zhu , Xiao-Ping Zheng

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

We study statistical properties of the number of large earthquakes over the past century. We analyze the cumulative distribution of the number of earthquakes with magnitude larger than threshold M in time interval T, and quantify the…

Geophysics · Physics 2012-03-30 Eric G. Daub , Eli Ben-Naim , Robert A. Guyer , Paul A. Johnson

This paper investigates the dynamics of in the S&P500 index from daily returns for the last 30 years. Using a stochastic geometry technique, each S&P500 yearly batch of data is embedded in a subspace that can be accurately described by a…

Statistical Mechanics · Physics 2016-08-16 Tanya Araújo , Francisco Louçã

The classifications of inflationary regimes proposed in the literature have mostly been based on arbitrary characterizations, subject to value judgments by researchers. The objective of this study is to propose a new methodological approach…

General Economics · Economics 2024-01-08 Manuel de Mier , Fernando Delbianco

Star clusters are studied widely both as benchmarks for stellar evolution models and in their own right. Cluster age and mass distributions within galaxies are probes of star formation histories, and of cluster formation and disruption…

Solar and Stellar Astrophysics · Physics 2015-05-18 Morgan Fouesneau , Ariane Lançon