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We study the asymptotic behavior of distribution densities arising in stock price models with stochastic volatility. The main objects of our interest in the present paper are the density of time averages of the squared volatility process…

Pricing of Securities · Quantitative Finance 2009-06-03 A. Gulisashvili , E. M. Stein

We investigate statistical properties of daily international market indices of seven countries, and high-frequency $S&P500$ and KOSDAQ data, by using the detrended fluctuation method and the surrogate test. We have found that the returns of…

Data Analysis, Statistics and Probability · Physics 2008-12-02 GabJin Oh , Cheol-Jun Um , Seunghwan Kim

In complex systems, crucial parameters are often subject to unpredictable changes in time. Climate, biological evolution and networks provide numerous examples for such non-stationarities. In many cases, improved statistical models are…

Statistical Finance · Quantitative Finance 2015-12-09 Frederik Meudt , Martin Theissen , Rudi Schäfer , Thomas Guhr

Financial markets have been extensively studied as highly complex evolving systems. In this paper, we quantify financial price fluctuations through a coupled dynamical system composed of phase oscillators. We find a Financial Coherence and…

Statistical Finance · Quantitative Finance 2016-05-10 Shangmei Zhao , Qiuchao Xie , Qing Lu , Xin Jiang , Wei Chen

We analyze high-resolution foreign exchange data consisting of 20 million data points of USD-JPY for 13 years to report firm statistical laws in distributions and correlations of exchange rate fluctuations. A conditional probability density…

Statistical Mechanics · Physics 2016-08-31 Takayuki Mizuno , Shoko Kurihara , Misako Takayasu , Hideki Takayasu

We present a detailed study of the performance of a trading rule that uses moving average of past returns to predict future returns on stock indexes. Our main goal is to link performance and the stochastic process of the traded asset. Our…

Statistical Finance · Quantitative Finance 2019-07-03 Fernando F. Ferreira , A. Christian Silva , Ju-Yi Yen

A new model for stocks markets using integer values for each stock price is presented. In contrast with previously reported models, the variables used in the model are not of binary type, but of more general integer type. It is shown how…

Condensed Matter · Physics 2007-05-23 Juan R. Sanchez

We report evidence of a deep interplay between cross-correlations hierarchical properties and multifractality of New York Stock Exchange daily stock returns. The degree of multifractality displayed by different stocks is found to be…

Statistical Finance · Quantitative Finance 2014-04-10 Raffaello Morales , T. Di Matteo , Tomaso Aste

Observations indicate that the distributions of stock returns in financial markets usually do not conform to normal distributions, but rather exhibit characteristics of high peaks, fat tails and biases. In this work, we assume that the…

Statistical Finance · Quantitative Finance 2023-12-06 Bo Li

Earlier we proposed the stochastic point process model, which reproduces a variety of self-affine time series exhibiting power spectral density S(f) scaling as power of the frequency f and derived a stochastic differential equation with the…

Physics and Society · Physics 2008-12-02 V. Gontis , B. Kaulakys

We propose a novel two-stage framework to detect lead-lag relationships in the Chinese A-share market. First, long-term coupling between stocks is measured via daily data using correlation, dynamic time warping, and rank-based metrics.…

Computational Finance · Quantitative Finance 2025-06-25 Jianyong Fang , Sitong Wu , Junfan Tong

Instabilities in the price dynamics of a large number of financial assets are a clear sign of systemic events. By investigating a set of 20 high cap stocks traded at the Italian Stock Exchange, we find that there is a large number of high…

Statistical Finance · Quantitative Finance 2013-03-12 Giacomo Bormetti , Lucio Maria Calcagnile , Michele Treccani , Fulvio Corsi , Stefano Marmi , Fabrizio Lillo

Methods for detecting structural changes, or change points, in time series data are widely used in many fields of science and engineering. This chapter sketches some basic methods for the analysis of structural changes in time series data.…

Statistical Finance · Quantitative Finance 2018-08-28 Christian Kleiber

Syntactic elements, such as word order and case markers, are fundamental in natural language processing. Recent studies show that syntactic information boosts language model performance and offers clues for people to understand their…

Computation and Language · Computer Science 2024-07-15 Jong Myoung Kim , Young-Jun Lee , Yong-jin Han , Sangkeun Jung , Ho-Jin Choi

We study spatiotemporal intermittency in a system of coupled sine circle maps. The phase diagram of the system shows parameter regimes where the STI lies in the directed percolation class, as well as regimes which show pure spatial…

Chaotic Dynamics · Physics 2007-05-23 Zahera Jabeen , Neelima Gupte

A central problem of Quantitative Finance is that of formulating a probabilistic model of the time evolution of asset prices allowing reliable predictions on their future volatility. As in several natural phenomena, the predictions of such…

Statistical Finance · Quantitative Finance 2012-09-25 Fulvio Baldovin , Dario Bovina , Francesco Camana , Attilio L. Stella

We study the allocation of synthetic portfolios under hierarchical nested, one-factor, and diagonal structures of the population covariance matrix in a high-dimensional scenario. The noise reduction approaches for the sample realizations…

Computational Finance · Quantitative Finance 2025-03-10 Andrés García-Medina

In recent years, the discovery of complex dynamic systems in various fields through data-driven methods has attracted widespread attention. This method has played the role of data and has become an advantageous tool for us to study complex…

Dynamical Systems · Mathematics 2020-12-02 Min Dai , Ting Gao , Yubin Lu , Yayun Zheng , Jinqiao Duan

Neural population activity often exhibits rich variability and temporal structure. This variability is thought to arise from single-neuron stochasticity, neural dynamics on short time-scales, as well as from modulations of neural firing…

Machine Learning · Statistics 2014-10-14 Mijung Park , Jakob H. Macke

Often, experiments, observations or simulations generate large numbers of snapshots of the configurations of complex many-particle systems. It is important to find methods of extracting useful information from these ensembles of snapshots…

Soft Condensed Matter · Physics 2007-05-23 Scott Menor , Maria Kilfoil , M. F. Thorpe