Abstract and Applied Analysis

Dynamic Communities in Stock Market

Xiangquan Gui, Li Li, Jie Cao, and Lian Li

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Abstract

The stock market has the huge effect and influence on a country or region’s economic and financial activities. But we have found that it is very hard for the prediction and control. This illustrates a critical need for new and fundamental understanding of the structure and dynamics of stock markets. Previous research and analysis on stock markets often focused on some assumptions of the game of competition and cooperation. Under the condition of these assumptions, the conclusions often reflect just part of the problem. The stock price is the core reflections of a stock market. So, in this paper, the authors introduce a methodology for constructing stock networks based on stock prices in a stock market and detecting dynamic communities in it. This strategy will help us from a new macroperspective to explore and mine the characteristics and laws hiding in the big data of stock markets. Through statistical analysis of many characteristics of dynamic communities, some interesting phenomena are found in this paper. These results are new findings in finance data analysis field and will potentially contribute to the analysis and decision-making of a financial market. The method presented in this paper can also be used to analyze other similar financial systems.

Article information

Source
Abstr. Appl. Anal., Volume 2014, Special Issue (2014), Article ID 723482, 9 pages.

Dates
First available in Project Euclid: 6 October 2014

Permanent link to this document
https://projecteuclid.org/euclid.aaa/1412606375

Digital Object Identifier
doi:10.1155/2014/723482

Zentralblatt MATH identifier
07022949

Citation

Gui, Xiangquan; Li, Li; Cao, Jie; Li, Lian. Dynamic Communities in Stock Market. Abstr. Appl. Anal. 2014, Special Issue (2014), Article ID 723482, 9 pages. doi:10.1155/2014/723482. https://projecteuclid.org/euclid.aaa/1412606375


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