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We present a brief overview of random matrix theory (RMT) with the objectives of highlighting the computational results and applications in financial markets as complex systems. An oft-encountered problem in computational finance is the…

Statistical Finance · Quantitative Finance 2018-09-27 Hirdesh K. Pharasi , Kiran Sharma , Anirban Chakraborti , Thomas H. Seligman

Minimum Spanning Tree (MST) is an important graph algorithm that has wide ranging applications in the areas of computer networks, VLSI routing, wireless communications among others. Today virtually every computer is built out of multi-core…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-05-15 Suryanarayana Murthy Durbhakula

Among all characteristics exhibited by natural and man-made networks the small-world phenomenon is surely the most relevant and popular. But despite its significance, a reliable and comparable quantification of the question `how small is a…

Physics and Society · Physics 2019-11-27 Gorka Zamora-López , Romain Brasselet

Financial networks are typically estimated by applying standard time series analyses to price-based economic variables collected at low-frequency (e.g., daily or monthly stock returns or realized volatility). These networks are used for…

Statistical Finance · Quantitative Finance 2022-08-09 Kara Karpman , Sumanta Basu , David Easley

We derive the finite size dependence of the clustering coefficient of scale-free random graphs generated by the configuration model with degree distribution exponent $2<\gamma<3$. Degree heterogeneity increases the presence of triangles in…

Disordered Systems and Neural Networks · Physics 2015-06-05 Pol Colomer-de-Simon , Marian Boguna

We present a novel way to characterize the structure of complex networks by studying the statistical properties of the trajectories of random walks over them. We consider time series corresponding to different properties of the nodes…

Physics and Society · Physics 2014-06-17 Vincenzo Nicosia , Manlio De Domenico , Vito Latora

We study the dynamics of the linear and non-linear serial dependencies in financial time series in a rolling window framework. In particular, we focus on the detection of episodes of statistically significant two- and three-point…

Statistical Finance · Quantitative Finance 2013-01-10 Milan Žukovič

Robustness in response to unexpected events is always desirable for real-world networks. To improve the robustness of any networked system, it is important to analyze vulnerability to external perturbation such as random failures or…

Social and Information Networks · Computer Science 2017-02-01 Alan Kuhnle , Nam P. Nguyen , Thang N. Dinh , My T. Thai

This research establishes that many real-world networks exhibit bounded expansion, a strong notion of structural sparsity, and demonstrates that it can be leveraged to design efficient algorithms for network analysis. We analyze several…

Social and Information Networks · Computer Science 2018-10-15 Erik D. Demaine , Felix Reidl , Peter Rossmanith , Fernando Sanchez Villaamil , Somnath Sikdar , Blair D. Sullivan

Many complex systems can be described in terms of networks of interacting units. Recent studies have shown that a wide class of both natural and artificial nets display a surprisingly widespread feature: the presence of highly heterogeneous…

Disordered Systems and Neural Networks · Physics 2007-05-23 R. Ferrer i Cancho , R. V. Sole

Complex networks are at the core of an intense research activity. However, in most cases, intricate and costly measurement procedures are needed to explore their structure. In some cases, these measurements rely on link queries: given two…

Networking and Internet Architecture · Computer Science 2009-04-22 Fabien Tarissan , Matthieu Latapy , Christophe Prieur

Cross-correlations in fluctuations of the daily exchange rates within the basket of the 100 highest-capitalization cryptocurrencies over the period October 1, 2015, through March 31, 2019, are studied. The corresponding dynamics…

Statistical Finance · Quantitative Finance 2020-02-12 Stanisław Drożdż , Ludovico Minati , Paweł Oświęcimka , Marek Stanuszek , Marcin Wątorek

In complex networks the rich nodes are the subset of nodes with high degree. These well connected nodes tend to dominate the organisation of the network's structure. In non-evolving networks, a reference network has been used to detect if…

Physics and Society · Physics 2008-12-16 R. J. Mondragon , S. Zhou

We describe a network clustering framework, based on finite mixture models, that can be applied to discrete-valued networks with hundreds of thousands of nodes and billions of edge variables. Relative to other recent model-based clustering…

Computation · Statistics 2020-03-13 Duy Q. Vu , David R. Hunter , Michael Schweinberger

This paper is an extensive survey of literature on complex network communities and clustering. Complex networks describe a widespread variety of systems in nature and society especially systems composed by a large number of highly…

Social and Information Networks · Computer Science 2015-03-24 Biswajit Saha , Amitabha Mandal , Soumendu Bikas Tripathy , Debaprasad Mukherjee

In the context of growing networks, we introduce a simple dynamical model that unifies the generic features of real networks: scale-free distribution of degree and the small world effect. While the average shortest path length increases…

Condensed Matter · Physics 2009-11-07 Konstantin Klemm , Victor M. Eguiluz

We discuss some methods to quantitatively investigate the properties of correlation matrices. Correlation matrices play an important role in portfolio optimization and in several other quantitative descriptions of asset price dynamics in…

Statistical Finance · Quantitative Finance 2010-08-25 M. Tumminello , F. Lillo , R. N. Mantegna

Money laundering is a global problem that concerns legitimizing proceeds from serious felonies (1.7-4 trillion euros annually) such as drug dealing, human trafficking, or corruption. The anti-money laundering systems deployed by financial…

Machine Learning · Computer Science 2022-06-20 Ahmad Naser Eddin , Jacopo Bono , David Aparício , David Polido , João Tiago Ascensão , Pedro Bizarro , Pedro Ribeiro

The non-trivial structure of such complex systems makes the analysis of their collective behavior a challenge. The problem is even more difficult when the information is distributed across networks (e.g., communication networks in different…

Social and Information Networks · Computer Science 2018-02-08 Carlo Spatocco , Giovanni Stilo , Carlotta Domeniconi , Alessandro D'Andrea

This article constructs the residual network after some regions were damaged and detached from the original crystal network. This residual crystal network simulates the situation where parts of a computer system or power system failed after…

Physics and Society · Physics 2023-11-14 Xie Bingyan , Wu Bo
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