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Stock networks, constructed from stock price time series, are a well-established tool for the characterization of complex behavior in stock markets. Following Mantegna's seminal paper, the linear Pearson's correlation coefficient between…

Statistical Finance · Quantitative Finance 2018-06-27 David Hartman , Jaroslav Hlinka

We introduce a framework to infer lead-lag networks between the states of elements of complex systems, determined at different timescales. As such networks encode the causal structure of a system, infering lead-lag networks for many pairs…

Statistical Finance · Quantitative Finance 2020-04-08 Marcus Cordi , Damien Challet , Serge Kassibrakis

With the widely used method of correlation matrix analysis, this study reveals the change of traffic states on parallel motorways in North Rhine-Westphalia, Germany. In terms of the time series of traffic flow and velocity, we carry out a…

Physics and Society · Physics 2022-05-18 Sebastian Gartzke , Shanshan Wang , Thomas Guhr , Michael Schreckenberg

It is shown that the structure of general equilibrium incomplete market models is intrinsically self-consistent and time-interlaced, with mean field interactions that are only implicit and also endogenous. Novel mathematical tools that can…

General Economics · Economics 2025-05-02 Andrew Lyasoff

Multivariate spatial phenomena are ubiquitous, spanning domains such as climate, pandemics, air quality, and social economy. Cross-correlation between different quantities of interest at different locations is asymmetric in general. This…

Methodology · Statistics 2026-01-27 Xiaoqing Chen

Great research efforts have been devoted to exploiting deep neural networks in stock prediction. While long-range dependencies and chaotic property are still two major issues that lower the performance of state-of-the-art deep learning…

Statistical Finance · Quantitative Finance 2021-11-02 Junran Wu , Ke Xu , Xueyuan Chen , Shangzhe Li , Jichang Zhao

We analyze the stability of financial investment networks, where financial institutions hold overlapping portfolios of assets. We consider the effect of portfolio diversification and heterogeneous investments using a random matrix dynamical…

Risk Management · Quantitative Finance 2025-02-03 Preben Forer , Barak Budnick , Pierpaolo Vivo , Sabrina Aufiero , Silvia Bartolucci , Fabio Caccioli

Our understanding of a variety of phenomena in physics, biology and economics crucially depends on the analysis of multivariate time series. While a wide range of tools and techniques for time series analysis already exist, the increasing…

Physics and Society · Physics 2015-10-27 Lucas Lacasa , Vincenzo Nicosia , Vito Latora

The concept of states of financial markets based on correlations has gained increasing attention during the last 10 years. We propose to retrace some important steps up to 2018, and then give a more detailed view of recent developments that…

Statistical Finance · Quantitative Finance 2021-07-14 Hirdesh K. Pharasi , Suchetana Sadhukhan , Parisa Majari , Anirban Chakraborti , Thomas H. Seligman

We study the behavior of simple models for financial markets with widely spread frequency either in the trading activity of agents or in the occurrence of basic events. The generic picture of a phase transition between information efficient…

Statistical Mechanics · Physics 2009-11-07 Matteo Marsili , Maurizio Piai

Financial markets are a classical example of complex systems as they comprise many interacting stocks. As such, we can obtain a surprisingly good description of their structure by making the rough simplification of binary daily returns.…

Statistical Finance · Quantitative Finance 2014-01-28 Thomas Bury

Sustainable financial markets play an important role in the functioning of human society. Still, the detection and prediction of risk in financial markets remain challenging and draw much attention from the scientific community. Here we…

Physics and Society · Physics 2018-11-27 Jingfang Fan , Keren Cohen , Louis M. Shekhtman , Sibo Liu , Jun Meng , Yoram Louzoun , Shlomo Havlin

In this work, we study a class of random matrices which interpolate between the Wigner matrix model and various types of patterned random matrices such as random Toeplitz, Hankel, and circulant matrices. The interpolation mechanism is…

Probability · Mathematics 2024-05-14 Frederick Rajasekaran

In this set of five lectures the authors have presented techniques to analyze open classical and quantum systems using correlation matrices. For diverse reasons we shall see that random matrices play an important role to describe a null…

Mathematical Physics · Physics 2014-02-12 Vinayak , Thomas H. Seligman

In this contribution we deal with the problem of learning an undirected graph which encodes the conditional dependence relationship between variables of a complex system, given a set of observations of this system. This is a very central…

Methodology · Statistics 2019-07-26 Daniela De Canditiis , Armando Guardasole

Covariance matrix estimation concerns the problem of estimating the covariance matrix from a collection of samples, which is of extreme importance in many applications. Classical results have shown that $O(n)$ samples are sufficient to…

Information Theory · Computer Science 2019-03-19 Wei Cui , Xu Zhang , Yulong Liu

Ordered sequences of univariate or multivariate regressions provide statistical models for analysing data from randomized, possibly sequential interventions, from cohort or multi-wave panel studies, but also from cross-sectional or…

Methodology · Statistics 2015-03-19 Nanny Wermuth , Kayvan Sadeghi

Statistical physics of complex systems exploits network theory not only to model, but also to effectively extract information from many dynamical real-world systems. A pivotal case of study is given by financial systems: market prediction…

Risk Management · Quantitative Finance 2017-10-31 Matteo Serafino , Andrea Gabrielli , Guido Caldarelli , Giulio Cimini

We investigate how in complex systems the eigenpairs of the matrices derived from the correlations of multichannel observations reflect the cluster structure of the underlying networks. For this we use daily return data from the NYSE and…

Physics and Society · Physics 2009-11-13 Tapio Heimo , Gergely Tibely , Jari Saramaki , Kimmo Kaski , Janos Kertesz

A Lorentz invariant statistical model is presented for rotational fluctuations in the local inertial frame that arise from new quantum degrees of freedom of space-time. The model assumes invariant classical causal structure, and a Planck…

General Relativity and Quantum Cosmology · Physics 2017-06-09 Craig Hogan , Ohkyung Kwon , Jonathan Richardson