Stock market as temporal network

L Zhao, GJ Wang, M Wang, W Bao, W Li… - Physica A: Statistical …, 2018‏ - Elsevier
Financial networks have become extremely useful in characterizing the structures of
complex financial systems. Meanwhile, the time evolution property of the stock markets can …

Portfolio optimization based on empirical mode decomposition

L Yang, L Zhao, C Wang - Physica A: Statistical Mechanics and its …, 2019‏ - Elsevier
The investigation about the cross-correlation among financial assets has drawn broad
attention recently. Due to the nonlinear and non-stationary identities of the financial time …

The q-dependent detrended cross-correlation analysis of stock market

L Zhao, W Li, A Fenu, B Podobnik… - Journal of Statistical …, 2018‏ - iopscience.iop.org
Abstract Properties of the q-dependent cross-correlation matrices of the stock market have
been analyzed by using random matrix theory and complex networks. The correlation …

Portfolio optimization under expected shortfall: contour maps of estimation error

F Caccioli, I Kondor, G Papp - Quantitative Finance, 2018‏ - Taylor & Francis
The contour maps of the error of historical and parametric estimates of the global minimum
risk for large random portfolios optimized under the Expected Shortfall (ES) risk measure are …

Replica approach to mean-variance portfolio optimization

I Varga-Haszonits, F Caccioli… - Journal of Statistical …, 2016‏ - iopscience.iop.org
We consider the problem of mean-variance portfolio optimization for a generic covariance
matrix subject to the budget constraint and the constraint for the expected return, with the …

Calibration of optimal execution of financial transactions in the presence of transient market impact

E Busseti, F Lillo - Journal of Statistical Mechanics: Theory and …, 2012‏ - iopscience.iop.org
Trading large volumes of a financial asset in order driven markets requires the use of
algorithmic execution dividing the volume into many transactions in order to minimize costs …

Analytic solution to variance optimization with no short positions

I Kondor, G Papp, F Caccioli - Journal of Statistical Mechanics …, 2017‏ - iopscience.iop.org
We consider the variance portfolio optimization problem with a ban on short selling. We
provide an analytical solution by means of the replica method for the case of a portfolio of …

[PDF][PDF] Impact-adjusted valuation and the criticality of leverage

F Caccioli, JP Bouchaud, D Farmer - Risk, 2012‏ - Citeseer
The practice of valuation by marking-to-market with current trading prices is seriously flawed.
Under leverage the problem is particularly dramatic: due to the concave form of market …

Liquidity risk and instabilities in portfolio optimization

F Caccioli, I Kondor, M Marsili, S Still - International Journal of …, 2016‏ - World Scientific
We show that including a term which accounts for finite liquidity in portfolio optimization
naturally mitigates the instabilities that arise in the estimation of coherent risk measures on …

Are specialist funds “special”?

D Fricke - Financial Management, 2019‏ - Wiley Online Library
In this paper, I explore the relation between portfolio overlap and performance diversity.
Using data on actively managed US equity mutual funds, I find that the pairwise portfolio …