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Stock Correlation Networks
A stock correlation network is a type of financial network based on stock price correlation used for observing, analyzing and predicting the stock market dynamics. Background In the last decade, financial networks have attracted more attention from the research community. A study on company ownership based network showed a power law distribution with majority of companies controlled by small number of people. Another study focused on board of directors where the network was created between companies if represented by the same member on board. The board membership network thus created resulted in a power law with small number of board members representing large number of companies. Several studies have proposed network based models for studying the stock correlation network. Stock correlation network has proven its efficacy in predicting market movements. Chakrabortia and Onella showed that the average distance between the stocks can be a significant indicator of market dynamics. Th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Network
A financial network is a concept describing any collection of financial entities (such as payment card industry, payment card companies, firms, banks and financial transaction processing) and the links between them, ideally through direct transactions or the ability to mediate a transaction. A common example of a financial network link is security holdings (e.g. stock of publicly traded companies), where a firm's ownership of stock would represent a link between the capital stock, stock and the firm. In network science terms, financial networks are composed of financial node (networking), nodes, where nodes represent financial institutions or participants, and of edges, where edges represent formal or informal relationships between nodes (i.e. stock or bond ownership). History The concept and use of financial networks has emerged in response to the observation that modern financial systems exhibit a high degree of interdependence. Globalization has magnified the level of financial i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |