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Scaling and multiscaling in financial markets

2000/07/25 by Giulia Iori · 3 citations
Economics, Econometrics and Finance · Mathematics · Physics and Astronomy · #Complex Systems and Time Series Analysis #Computer science #Econometrics #Economics #Econophysics #Finance #Financial market #Mathematics #Physics #Scaling #Scaling law #Statistical physics #cond-mat.stat-mech #q-fin.ST

paper · pdf · doi:10.1063/1.1358199

published in AIP conference proceedings 553, 297-302 (American Institute of Physics) · Paper presented at the Disordered and Complex Systems s conference, King's College London, July 2000

arxiv created 2000/07/25 · openalex publication_date 2001/01/01 · arxiv updated 2009/11/30 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/05

Abstract

This paper reviews some of the phenomenological models which have been introduced to incorporate the scaling properties of financial data. It also illustrates a microscopic model, based on heterogeneous interacting agents, which provides a possible explanation for the complex dynamics of markets' returns. Scaling and multi-scaling analysis performed on the simulated data is in good quantitative agreement with the empirical results.

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