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Dynamics of the market states in the space of correlation matrices with\n applications to financial markets

2021/07/12 by Hirdesh K. Pharasi, Suchetana Sadhukhan, Pharasi, Hirdesh K. +7
Economics, Econometrics and Finance · Physics and Astronomy · #Complex Systems and Time Series Analysis #FOS: Economics and business #FOS: Physical sciences #Physics and Society (physics.soc-ph) #Statistical Finance (q-fin.ST) #Statistical Mechanics and Entropy #Theoretical and Computational Physics

paper · pdf · doi:10.48550/arxiv.2107.05663

openalex publication_date 2021/07/12 · openalex created_date 2021/08/02 · openalex updated_date 2026/07/28

Abstract

The concept of states of financial markets based on correlations has gained\nincreasing attention during the last 10 years. We propose to retrace some\nimportant steps up to 2018, and then give a more detailed view of recent\ndevelopments that attempt to make the use of this more practical. Finally, we\ntry to give a glimpse to the future proposing the analysis of trajectories in\ncorrelation matrix space directly or in terms of symbolic dynamics as well as\nattempts to analyze the clusters that make up the states in a random matrix\ncontext.\n

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