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Dynamic spin correlation functions $<S_i^x (t)S_j^x>$ for the 1D $S=1/2$ $XX$ model $H = -J\Sigma_i \{S_i^x S_{i+1}^x + S_i^y S_{i+1}^y \}$ are calculated exactly for finite open chains with up to N=10000 spins. Over a certain time range…

Condensed Matter · Physics 2009-10-28 Joachim Stolze , Angela Nöppert , Gerhard Müller

Using the correlation matrix formalism we study the temporal aspects of the Warsaw Stock Market evolution as represented by the WIG20 index. The high frequency (1 min) WIG20 recordings over the time period between January 2001 and October…

Data Analysis, Statistics and Probability · Physics 2008-12-02 R. Rak , S. Drozdz , J. Kwapien , P. Oswiecimka

In this paper, we quantitatively investigate the properties of a statistical ensemble of stock prices. We focus attention on the relative price defined as $ X(t) = S(t)/S(0) $, where $ S(0) $ is the initial price. We selected approximately…

Physics and Society · Physics 2015-06-26 Taisei Kaizoji

We apply the concepts of multifractal physics to financial time series in order to characterize the onset of crash for the Standard & Poor's 500 stock index x(t). It is found that within the framework of multifractality, the "analogous"…

Condensed Matter · Physics 2009-10-31 Enrique Canessa

We follow the main stocks belonging to the New York Stock Exchange and to Nasdaq from 2003 to 2012, through years of normality and of crisis, and study the dynamics of networks built on two measures expressing relations between those…

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

Financial time series typically exhibit strong fluctuations that cannot be described by a Gaussian distribution. In recent empirical studies of stock market indices it was examined whether the distribution P(r) of returns r(tau) after some…

Statistical Mechanics · Physics 2009-11-07 Ofer Biham , Zhi-Feng Huang , Ofer Malcai , Sorin Solomon

We study the temporal evolution of the market efficiency in the stock markets using the complexity, entropy density, standard deviation, autocorrelation function, and probability distribution of the log return for Standard and Poor's 500…

Physics and Society · Physics 2008-12-02 Jae-Suk Yang , Wooseop Kwak , Taisei Kaizoji , In-mook Kim

In this brief review, we critically examine the recent work done on correlation-based networks in financial systems. The structure of empirical correlation matrices constructed from the financial market data changes as the individual stock…

Computational Finance · Quantitative Finance 2020-04-21 Vishwas Kukreti , Hirdesh K. Pharasi , Priya Gupta , Sunil Kumar

Identifying macroeconomic events that are responsible for dramatic changes of economy is of particular relevance to understand the overall economic dynamics. We introduce an open-source available efficient Python implementation of a…

Statistical Finance · Quantitative Finance 2026-03-03 Martin Heßler , Tobias Wand , Oliver Kamps

Time-varying volatility is an inherent feature of most economic time-series, which causes standard correlation estimators to be inconsistent. The quadrant correlation estimator is consistent but very inefficient. We propose a novel…

Econometrics · Economics 2023-11-01 Peter Reinhard Hansen , Yiyao Luo

In addressing the question of the time scales characteristic for the market formation, we analyze high frequency tick-by-tick data from the NYSE and from the German market. By using returns on various time scales ranging from seconds or…

Statistical Mechanics · Physics 2009-11-10 J. Kwapien , S. Drozdz , J. Speth

A few characteristic exponents describing power law behaviors of roughness, coherence and persistence in stochastic time series are compared to each other. Relevant techniques for analyzing such time series are recalled in order to…

Statistical Mechanics · Physics 2007-05-23 M. Ausloos

Traded corporations are required by law to have a majority of outside directors on their board. This requirement allows the existence of directors who sit on the board of two or more corporations at the same time, generating what is…

General Finance · Quantitative Finance 2014-10-27 Serguei Saavedra , Luis J. Gilarranz , Rudolf P. Rohr , Michael Schnabel , Brian Uzzi , Jordi Bascompte

The gain-loss asymmetry, observed in the inverse statistics of stock indices is present for logarithmic return levels that are over $2\%$, and it is the result of the non-Pearson type auto-correlations in the index. These non-Pearson type…

Statistical Finance · Quantitative Finance 2016-08-24 Bulcsú Sándor , Ingve Simonsen , Bálint Zsolt Nagy , Zoltán Néda

We investigate the emergence of a structure in the correlation matrix of assets' returns as the time-horizon over which returns are computed increases from the minutes to the daily scale. We analyze data from different stock markets (New…

Physics and Society · Physics 2010-12-08 Christian Borghesi , Matteo Marsili , Salvatore Miccichè

Understanding the structure of financial markets deals with suitably determining the functional relation between financial variables. In this respect, important variables are the trading activity, defined here as the number of trades $N$,…

Trading and Market Microstructure · Quantitative Finance 2018-10-16 Mathias Pohl , Alexander Ristig , Walter Schachermayer , Ludovic Tangpi

The dynamics of prices in financial markets has been studied intensively both experimentally (data analysis) and theoretically (models). Nevertheless, a complete stochastic characterization of volatility is still lacking. What it is well…

Statistical Mechanics · Physics 2009-10-31 Michele Pasquini , Maurizio Serva

Analyzing market states of the S&P 500 components on a time horizon January 3, 2006 to August 10, 2023, we found the appearance of a new market state not previously seen and we shall discuss its possible implications as an isolated state or…

Applications · Statistics 2024-05-02 M. Mijaíl Martínez-Ramos , Manan Vyas , Parisa Majai , Thomas H. Seligman

The Empirical Mode Decomposition (EMD) provides a tool to characterize time series in terms of its implicit components oscillating at different time-scales. We apply this decomposition to intraday time series of the following three…

Computational Engineering, Finance, and Science · Computer Science 2018-04-04 Noemi Nava , T. Di Matteo , Tomaso Aste

We test for the long-run relationship between stock prices, inflation and its uncertainty for different U.S. sector stock indexes, over the period 2002M7 to 2015M10. For this purpose we use a cointegration analysis with one structural break…

Computational Finance · Quantitative Finance 2016-03-04 Claudiu Albulescu , Christian Aubin , Daniel Goyeau
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