scholarly journals Transfer Entropy between Communities in Complex Financial Networks

Entropy ◽  
2019 ◽  
Vol 21 (11) ◽  
pp. 1124 ◽  
Author(s):  
Jan Korbel ◽  
Xiongfei Jiang ◽  
Bo Zheng
Keyword(s):  
Financial Markets ◽  
Information Transfer ◽  
Transfer Entropy ◽  
Financial Networks ◽  
Business Sector ◽  
Information Flows ◽  
Non Linear ◽  
Risk Spreading ◽  
Business Sectors ◽  
Linear Interactions

In this paper, we analyze information flows between communities of financial markets, represented as complex networks. Each community, typically corresponding to a business sector, represents a significant part of the financial market and the detection of interactions between communities is crucial in the analysis of risk spreading in the financial markets. We show that the transfer entropy provides a coherent description of information flows in and between communities, also capturing non-linear interactions. Particularly, we focus on information transfer of rare events—typically large drops which can spread in the network. These events can be analyzed by Rényi transfer entropy, which enables to accentuate particular types of events. We analyze transfer entropies between communities of the five largest financial markets and compare the information flows with the correlation network of each market. From the transfer entropy picture, we can also identify the non-linear interactions, which are typical in the case of extreme events. The strongest flows can be typically observed between specific types of business sectors—financial sectors is the most significant example.

Compact energy-time entanglement source using cascaded non-linear interactions

2021 ◽  
Author(s):  
Pascal Lefebvre ◽  
Raju Valivarthi ◽  
Qiang Zhou ◽  
Lee Oesterling ◽  
Daniel Oblak ◽  
...  
Keyword(s):  
Non Linear ◽  
Linear Interactions

scholarly journals Structural and temporal patterns of the first global trading market

2018 ◽  
Vol 5 (8) ◽  
pp. 180577 ◽  
Author(s):  
Ana Sofia Ribeiro ◽  
Flávio L. Pinheiro ◽  
Francisco C. Santos ◽  
Amélia Polónia ◽  
Jorge M. Pacheco
Keyword(s):  
Sixteenth Century ◽  
Financial Markets ◽  
Power Law ◽  
Temporal Analysis ◽  
Financial Networks ◽  
Temporal Network ◽  
Online Database ◽  
Structural Patterns ◽  
Trading Market ◽  
Fast Adaptation

Little is known about the structural patterns and dynamics of the first global trading market (FGTM), which emerged during the sixteenth century as a result of the Iberian expansion, let alone how it compares to today's global financial markets. Here we build a representative network of the FGTM using information contained in 8725 (handwritten) Bills of Exchange from that time—which were (human) interpreted and digitalized into an online database. We show that the resulting temporal network exhibits a hierarchical, highly clustered and disassortative structure, with a power-law dependence on the connectivity that remains remarkably robust throughout the entire period investigated. Temporal analysis shows that, despite major turnovers in the number and nature of the links—suggesting fast adaptation in response to the geopolitical and financial turmoil experienced at the time—the overall characteristics of the FGTM remain robust and virtually unchanged. The methodology developed here demonstrates the possibility of building and analysing complex trading and finance networks originating from pre-statistical eras, enabling us to highlight the striking similarities between the structural patterns of financial networks separated by centuries in time.

scholarly journals Mechanisms of the non-linear interactions between the neuronal and neurotransmitter systems explained by causal whole-brain modeling

2019 ◽  
Author(s):  
Josephine Cruzat ◽  
Joana Cabral ◽  
Gitte Moos Knudsen ◽  
Robin Carhart-Harris ◽  
Peter C. Whybrow ◽  
...  
Keyword(s):  
Whole Brain ◽  
Neurotransmitter Systems ◽  
Brain Modeling ◽  
Non Linear ◽  
Linear Interactions

scholarly journals Stroke-related alterations in inter-areal communication revealed via Granger causality analysis

2021 ◽  
Author(s):  
Michele Allegra ◽  
Chiara Favaretto ◽  
Nicholas Metcalf ◽  
Maurizio Corbetta ◽  
Andrea Brovelli
Keyword(s):  
Functional Connectivity ◽  
Granger Causality ◽  
Resting State ◽  
Information Transfer ◽  
Large Scale ◽  
Functional Organization ◽  
Information Flows ◽  
Causality Analysis ◽  
Stroke Patients ◽  
Granger Causality Analysis

ABSTRACTNeuroimaging and neurological studies suggest that stroke is a brain network syndrome. While causing local ischemia and cell damage at the site of injury, stroke strongly perturbs the functional organization of brain networks at large. Critically, functional connectivity abnormalities parallel both behavioral deficits and functional recovery across different cognitive domains. However, the reasons for such relations remain poorly understood. Here, we tested the hypothesis that alterations in inter-areal communication underlie stroke-related modulations in functional connectivity (FC). To this aim, we used resting-state fMRI and Granger causality analysis to quantify information transfer between brain areas and its alteration in stroke. Two main large-scale anomalies were observed in stroke patients. First, inter-hemispheric information transfer was strongly decreased with respect to healthy controls. Second, information transfer within the affected hemisphere, and from the affected to the intact hemisphere was reduced. Both anomalies were more prominent in resting-state networks related to attention and language, and they were correlated with impaired performance in several behavioral domains. Overall, our results support the hypothesis that stroke perturbs inter-areal communication within and across hemispheres, and suggest novel therapeutic approaches aimed at restoring normal information flow.SIGNIFICANCE STATEMENTA thorough understanding of how stroke perturbs brain function is needed to improve recovery from the severe neurological syndromes affecting stroke patients. Previous resting-state neuroimaging studies suggested that interaction between hemispheres decreases after stroke, while interaction between areas of the same hemisphere increases. Here, we used Granger causality to reconstruct information flows in the brain at rest, and analyze how stroke perturbs them. We showed that stroke causes a global reduction of inter-hemispheric communication, and an imbalance between the intact and the affected hemisphere: information flows within and from the latter are impaired. Our results may inform the design of stimulation therapies to restore the functional balance lost after stroke.

scholarly journals THE INTERDEPENDENCE BETWEEN THE FINANCIAL SECTOR AND BUSINESS SECTOR IN ASEAN 4 COUNTRIES

2018 ◽  
Vol 33 (1) ◽  
pp. 77
Author(s):  
Aulia Keiko Hubbansyah ◽  
Zaafri Ananto Husodo
Keyword(s):  
Financial Sector ◽  
Business Sector ◽  
Dynamic Interactions ◽  
Credit Growth ◽  
Vector Autoregressive ◽  
Quarterly Data ◽  
Dominant Source ◽  
Leading Role ◽  
Index Approach ◽  
Business Sectors

In this study, we analyze the dynamic interactions between the financial sectors and the business sectors in the ASEAN-4 countries (Indonesia, Malaysia, Thailand and Singapore). To do that, we apply the newly generalized version of the Vector Autoregressive Framework (VAR) spillover index approach proposed by Diebold and Yilmaz (2012) as our method of analysis. Based on quarterly data of each variable over the period from the first quarter of 1984 to the fourth quarter of 2015 for the ASEAN-4 countries, this study finds that: 1) Spillovers between the variables move in a diverse manner over the period of analysis for each country, 2) The variable that acts as the dominant crisis transmitter in each country is different for each country, 3) The interdependence between the variables became stronger, both within and across the countries, during the crisis period. In particular, the business sectors played a leading role during the onset of the crisis, while the financial sectors took their places as the dominant source of spillovers as the crisis deepened. 4) Credit growth in Thailand was found to be the dominant transmitter of shocks to the ASEAN-3 countries. Overall, these results suggest that the strength and movement of the spillovers between the financial and business sectors changed from time to time along with the changes that happened in the economies.  

scholarly journals CORPORATE REAL ESTATE DISPOSAL IMPACT ON PERFORMANCE RATIOS

2004 ◽  
Vol 8 (3) ◽  
pp. 131-147 ◽  
Author(s):  
Antti Louko
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Corporate Performance ◽  
Business Sector ◽  
Short Term ◽  
Corporate Real Estate ◽  
Business Sectors

The purpose of this study was to investigate the effects of corporate real estate disposals on corporate performance ratios in Europe between the years 1998–2002. In addition, it was studied whether the retail and telecom corporations that conducted large real estate disposals were in significantly worse condition before the transactions than other corporations in the same business sector. The study indicated that those retail corporations that had divested corporate real estate were less profitable compared to other corporations in the same business sector before the transactions. Similarly, some evidence was found that the telecom corporations that were disposing of real estate had worse capital structure and short‐term solvency before the transactions than other European telecom corporations. It seems, however, that the overall economical environment and other corporate operations have often influenced the development of the performance ratios more than the property disposals, at least in the most volatile business sectors.

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