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Using a recently introduced rational expectation model of bubbles, based on the interplay between stochasticity and positive feedbacks of prices on returns and volatility, we develop a new methodology to test how this model classifies 9…

Statistical Mechanics · Physics 2009-11-10 J. V. Andersen , D Sornette

Financial market is an example of complex system, which is characterized by a highly intricate organization and the emergence of collective behavior. In this paper, we quantify this emergent dynamics in the financial market by using…

General Finance · Quantitative Finance 2011-09-07 Thomas Kauê Dal'Maso Peron , Francisco Aparecido Rodrigues

The dynamical evolution of multiscaling in financial time series is investigated using time-dependent Generalized Hurst Exponents (GHE), $H_q$, for various values of the parameter $q$. Using $H_q$, we introduce a new visual methodology to…

Statistical Finance · Quantitative Finance 2020-12-10 Ioannis P. Antoniades , Giuseppe Brandi , L. G. Magafas , T. Di Matteo

The aim of this paper is to compare statistical properties of a bubble period with those of the anti-bubble period in stock markets. We investigate the statistical properties of daily data for the Nikkei 225 index in the 28-year period from…

Statistical Mechanics · Physics 2015-06-24 Taisei Kaizoji

Stylized facts of empirical assets log-returns $Z$ include the existence of (semi) heavy tailed distributions $f_Z(z)$ and a non-linear spectrum of Hurst exponents $\tau(\beta)$. Empirical data considered are daily prices of 10 large…

Physics and Society · Physics 2008-12-02 Stefan Reimann

A wide range of approaches for batch processes monitoring can be found in the literature. This kind of process generates a very peculiar data structure, in which successive measurements of many process variables in each batch run are…

Methodology · Statistics 2021-09-03 Batista Nunes de Oliveira , Marcio Valk , Danilo Marcondes Filho

Robust principal component analysis (RPCA) is a widely used technique for recovering low-rank structure from matrices with missing entries and sparse, possibly large-magnitude corruptions. Although numerous algorithms achieve accurate point…

Methodology · Statistics 2026-03-17 Liangliang Yuan , Lei Wang , Quan Kong , Liuhua Peng

Quantitative trading is an integral part of financial markets with high calculation speed requirements, while no quantum algorithms have been introduced into this field yet. We propose quantum algorithms for high-frequency statistical…

Quantum Physics · Physics 2022-08-24 Xi-Ning Zhuang , Zhao-Yun Chen , Yu-Chun Wu , Guo-Ping Guo

The use of Association Rule Mining techniques in diverse contexts and domains has resulted in the creation of numerous interestingness measures. This, in turn, has motivated researchers to come up with various classification schemes for…

Machine Learning · Computer Science 2017-12-15 Nandan Sudarsanam , Nishanth Kumar , Abhishek Sharma , Balaraman Ravindran

The method of recurrence plots is extended to the cross recurrence plots (CRP), which among others enables the study of synchronization or time differences in two time series. This is emphasized in a distorted main diagonal in the cross…

Geophysics · Physics 2020-01-29 N. Marwan , M. Thiel , N. R. Nowaczyk

Financial markets can be seen as complex systems that are constantly evolving and sensitive to external disturbance, such as systemic risks and economic instabilities. Analysis of resilient market performance, therefore, becomes useful for…

General Finance · Quantitative Finance 2019-09-04 Junqing Tang , Hans R. Heinimann

The Random Phase and Amplitude Formalism (RPA) has significantly extended the scope of weak turbulence studies. Because RPA does not assume any proximity to the Gaussianity in the wavenumber space, it can predict, for example, how the…

Chaotic Dynamics · Physics 2014-01-15 Mitsuhiro Tanaka , Naoto Yokoyama

We present an analysis of the time behavior of the $S\&P500$ (Standard and Poors) New York stock exchange index before and after the October 1987 market crash and identify precursory patterns as well as aftershock signatures and…

Condensed Matter · Physics 2009-10-28 Didier Sornette , Anders Johansen , Jean-Philippe Bouchaud

For the pedestrian observer, financial markets look completely random with erratic and uncontrollable behavior. To a large extend, this is correct. At first approximation the difference between real price changes and the random walk model…

Statistical Finance · Quantitative Finance 2011-08-22 Laurent Schoeffel

We investigate the probability distributions of the recurrence intervals $\tau$ between consecutive 1-min returns above a positive threshold $q>0$ or below a negative threshold $q<0$ of two indices and 20 individual stocks in China's stock…

Statistical Finance · Quantitative Finance 2010-08-03 Fei Ren , Wei-Xing Zhou

The understanding of complex systems has become a central issue because complex systems exist in a wide range of scientific disciplines. Time series are typical experimental results we have about complex systems. In the analysis of such…

Statistical Finance · Quantitative Finance 2012-02-09 Michael C. Münnix , Takashi Shimada , Rudi Schäfer , Francois Leyvraz Thomas H. Seligman , Thomas Guhr , H. E. Stanley

We model spontaneous cortical activity with a network of coupled spiking units, in which multiple spatio-temporal patterns are stored as dynamical attractors. We introduce an order parameter, which measures the overlap (similarity) between…

Neurons and Cognition · Quantitative Biology 2015-06-17 Silvia Scarpetta , Antonio de Candia

Much research has been conducted arguing that tipping points at which complex systems experience phase transitions are difficult to identify. To test the existence of tipping points in financial markets, based on the alternating offer…

Computational Finance · Quantitative Finance 2016-08-24 Zvonko Kostanjcar , Stjepan Begusic , H. E. Stanley , Boris Podobnik

Recurrence determinism, one of the fundamental characteristics of recurrence quantification analysis, measures predictability of a trajectory of a dynamical system. It is tightly connected with the conditional probability that, given a…

Dynamical Systems · Mathematics 2017-12-11 Vladimír Špitalský

We empirically analyze the reversion of financial market trends with time horizons ranging from minutes to decades. The analysis covers equities, interest rates, currencies and commodities and combines 14 years of futures tick data, 30…

Statistical Finance · Quantitative Finance 2025-06-02 Sara A. Safari , Christof Schmidhuber