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In the present work we analyse the dynamics of indirect connections between insurance companies that result from market price channels. In our analysis we assume that the stock quotations of insurance companies reflect market sentiments…

统计金融 · 定量金融 2020-03-11 Anna Denkowska , Stanisław Wanat

We exploit a recent computational framework to model and detect financial crises in stock markets, as well as shock events in cryptocurrency markets, which are characterized by a sudden or severe drop in prices. Our method manages to detect…

计算几何 · 计算机科学 2021-03-25 Apostolos Chalkis , Emmanouil Christoforou , Theodore Dalamagkas , Ioannis Z. Emiris

The study of the critical dynamics in complex systems is always interesting yet challenging. Here, we choose financial market as an example of a complex system, and do a comparative analyses of two stock markets - the S&P 500 (USA) and…

In finance, Random Matrix Theory (RMT) is an important tool for filtering out noise from large datasets, revealing true correlations among stocks, enhancing risk management and portfolio optimization. In this study, we use RMT to filter out…

社会与信息网络 · 计算机科学 2024-10-11 Pawanesh , Imran Ansari , Niteesh Sahni

Catastrophic events, though rare, do occur and when they occur, they have devastating effects. It is, therefore, of utmost importance to understand the complexity of the underlying dynamics and signatures of catastrophic events, such as…

A major impact of globalization has been the information flow across the financial markets rendering them vulnerable to financial contagion. Research has focused on network analysis techniques to understand the extent and nature of such…

统计金融 · 定量金融 2019-11-15 Sayantan Banerjee , Kousik Guhathakurta

The purpose of this paper is to advance the understanding of the conditions that give rise to flash crash contagion, particularly with respect to overlapping asset portfolio crowding. To this end, we designed, implemented, and assessed a…

交易与市场微观结构 · 定量金融 2019-02-01 James Paulin , Anisoara Calinescu , Michael Wooldridge

The paper presents a comprehensive causality analysis of the US stock and commodity markets during the COVID-19 crash. The dynamics of different sectors are also compared. We use Topological Data Analysis (TDA) on multidimensional…

统计金融 · 定量金融 2025-02-21 Buddha Nath Sharma , Anish Rai , SR Luwang , Md. Nurujjaman , Sushovan Majhi

Network models represent a useful tool to describe the complex set of financial relationships among heterogeneous firms in the system. In this paper, we propose a new semiparametric model for temporal multilayer causal networks with both…

计量经济学 · 经济学 2021-01-05 Billio Monica , Casarin Roberto , Costola Michele , Iacopini Matteo

A model of an evolving network of interacting molecular species is shown to exhibit repeated rounds of crashes in which several species get rapidly depopulated, followed by recoveries. The network inevitably self-organizes into an…

适应与自组织系统 · 物理学 2009-11-07 Sanjay Jain , Sandeep Krishna

Since the beginning of the new millennium, stock markets went through every state from long-time troughs, trade suspensions to all-time highs. The literature on asset pricing hence assumes random processes to be underlying the movement of…

统计金融 · 定量金融 2019-06-26 Tanya Araújo , Maximilian Göbel

Financial crises are known as crashes that result in a sudden loss of value of financial assets in large part and they continue to occur from time to time surprisingly. In order to discover features of the financial network, the pairwise…

统计金融 · 定量金融 2023-01-11 MohammadReza Zahedian , Mahsa Bagherikalhor , Andrey Trufanov , G. Reza Jafari

We implement a market microstructure model including informed, uninformed and heuristic-driven investors, which latter behave in line with loss-aversion and mental accounting. We show that the probability of informed trading (PIN) varies…

交易与市场微观结构 · 定量金融 2016-06-14 Mihaly Ormos , Dusan Timotity

The time-varying kernel density estimation relies on two free parameters: the bandwidth and the discount factor. We propose to select these parameters so as to minimize a criterion consistent with the traditional requirements of the…

统计金融 · 定量金融 2022-03-21 Matthieu Garcin , Jules Klein , Sana Laaribi

We apply RMT, Network and MF-DFA methods to investigate correlation, network and multifractal properties of 20 global financial indices. We compare results before and during the financial crisis of 2008 respectively. We find that the…

统计金融 · 定量金融 2015-06-04 Sunil Kumar , Nivedita Deo

Drawing on recent contributions inferring financial interconnectedness from market data, our paper provides new insights on the evolution of the US financial industry over a long period of time by using several tools coming from network…

物理与社会 · 物理学 2018-07-04 Yérali Gandica , Marco Valerio Geraci , Sophie Béreau , Jean-Yves Gnabo

We empirically investigated the effects of market factors on the information flow created from N(N-1)/2 linkage relationships among stocks. We also examined the possibility of employing the minimal spanning tree (MST) method, which is…

统计金融 · 定量金融 2015-05-13 Cheoljun Eom , Okyu Kwon , Woo-Sung Jung , Seunghwan Kim

This work employs some techniques in order to filter random noise from the information provided by minimum spanning trees obtained from the correlation matrices of international stock market indices prior to and during times of crisis. The…

统计金融 · 定量金融 2014-08-11 Leonidas Sandoval Junior

In the last years efforts in econophysics have been shifted to study how network theory can facilitate understanding of complex financial markets. Main part of these efforts is the study of correlation-based hierarchical networks. This is…

统计金融 · 定量金融 2014-06-18 Paweł Fiedor

Mutual information minimum spanning trees are used to explore nonlinear dependencies on Brazilian equity network in the periods from June/01/2015 to January/26/2016, in which Brazil was under the government of President Dilma Rousseff, and…

物理与社会 · 物理学 2019-05-09 A. Q. Barbi , G. A. Prataviera