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We describe a simple and accurate framework for modeling the statistical behavior of both fully developed turbulence and short-term dynamics of financial markets based on the formalism of Tsallis' generalized non-extensive thermostatistics.…

Condensed Matter · Physics 2007-05-23 F. M. Ramos , C. Rodrigues Neto , R. R. Rosa

We present a model of financial markets originally proposed for a turbulent flow, as a dynamic basis of its intermittent behavior. Time evolution of the price change is assumed to be described by Brownian motion in a power-law potential,…

Statistical Mechanics · Physics 2009-11-07 Naoki Kozuki , Nobuko Fuchikami

We apply non-extensive methods to the statistical analysis of fully developed turbulent flows. Probability density functions of velocity differences at distance r obtained by extremizing the Tsallis entropies coincide well with what is…

Statistical Mechanics · Physics 2007-05-23 Christian Beck

Analogies between the price dynamics in the foreign exchange market and 3-dimensional fully developed turbulence were recently presented in Nature vol. 381, 767-769 (1996). Independently, we have carried out a study comparing the parallel…

Condensed Matter · Physics 2007-05-23 Rosario N. Mantegna , H. Eugene Stanley

It is pointed out that the dynamics of the order parameter at a thermal critical point obeys the precepts of the nonextensive Tsallis statistics. We arrive at this conclusion by putting together two well-defined statistical-mechanical…

Statistical Mechanics · Physics 2013-08-29 A. Robledo

We describe some recent applications of Tsallis statistics in fully developed hydrodynamic turbulence and high energy physics. For many of these applications nonextensive properties arise from spatial fluctuations of the temperature or the…

Statistical Mechanics · Physics 2015-06-24 Christian Beck

Based on the Tsallis entropy, the nonextensive thermodynamic properties are studied as a q-deformation of classical statistical results using only probabilistic methods and straightforward calculations. It is shown that the constant in the…

Statistical Mechanics · Physics 2007-05-23 Franck Jedrzejewski

Within the Tsallis thermodynamics' framework, and using scaling properties of the entropy, we derive a generalization of the Gibbs-Duhem equation. The analysis suggests a transformation of variables that allows standard thermodynamics to be…

Statistical Mechanics · Physics 2009-11-07 Eduard Vives , Antoni Planes

The nonextensive statistical ensembles are revisited for the complex systems with long-range interactions and long-range correlations. An approximation, the value of nonextensive parameter (1-q) is assumed to be very tiny, is adopted for…

Statistical Mechanics · Physics 2020-02-26 Yahui Zheng , Jiulin Du , Linxia Liu , Huijun Kong

Distributions derived from non-extensive Tsallis statistics are closely connected with dynamics described by a nonlinear Fokker-Planck equation. The combination shows promise in describing stochastic processes with power-law distributions…

Statistical Mechanics · Physics 2008-12-02 Fredrick Michael , M. D. Johnson

The statistical properties of fully developed hydrodynamic turbulence can be successfully described using methods from nonextensive statistical mechanics. The predicted probability densities and scaling exponents precisely coincide with…

Statistical Mechanics · Physics 2009-11-07 Christian Beck

The original canonical ensemble formalism for the nonextensive entropy thermostatistics is reconsidered. It is shown that the unambiguous connection of the statistical mechanics with the equilibrium thermodynamics is provided if the…

Statistical Mechanics · Physics 2009-11-11 A. S. Parvan

The Tsallis entropy, which is a generalization of the Boltzmann-Gibbs entropy, plays a central role in nonextensive statistical mechanics of complex systems. A lot of efforts have recently been made on establishing a dynamical foundation…

Statistical Mechanics · Physics 2009-11-11 Sumiyoshi Abe , Yutaka Nakada

The non-extensive statistical mechanics has been applied to describe a variety of complex systems with inherent correlations and feedback loops. Here we present a dynamical model based on previously proposed static model exhibiting in the…

Statistical Mechanics · Physics 2016-04-20 A. Kononovicius , J. Ruseckas

Turbulence is known to show intermittency. That is, statistical properties vary with the length scale in a way not accounted for by statistical similarity where dimensionless ratios of moments are constant. Intermittency occurs even in the…

Fluid Dynamics · Physics 2007-05-23 Mogens V. Melander , Bruce R. Fabijonas

Recent investigations of turbulent circulation fluctuations have uncovered substantial insights into the statistical organization of flow structures and revealed unexpected geometric features of turbulent intermittency. Of particular…

The role played by non extensive thermodynamics in physical systems has been under intense debate for the last decades. With many applications in several areas, the Tsallis statistics has been discussed in details in many works and…

Statistical Mechanics · Physics 2018-10-17 Airton Deppman , Eugenio Megias , Debora P. Menezes , Tobias Frederico

One of the major issues studied in finance that has always intrigued, both scholars and practitioners, and to which no unified theory has yet been discovered, is the reason why prices move over time. Since there are several well-known…

Statistical Finance · Quantitative Finance 2008-12-02 Sonia R. Bentes , Rui Menezes , Diana A. Mendes

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

We introduce the notion of relative volatility/intermittency and demonstrate how relative volatility statistics can be used to estimate consistently the temporal variation of volatility/intermittency when the data of interest are generated…

Statistics Theory · Mathematics 2015-09-16 Ole E. Barndorff-Nielsen , Mikko S. Pakkanen , Jürgen Schmiegel
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