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Aftershocks in a complex system with catastrophes: Crash of currency exchange rate. (arXiv:1706.03246v1 [q-fin.ST])

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The dynamical behavior of the currency exchange rate after its large-scale crash is studied. It is shown that, similarly to the case of the stock market crash investigated by Lillo and Mantegna [Phys. Rev. E 68, 016119 (2003)], the relaxation is characterized by a power law, which is in analogy with the Omori-Utsu law for earthquake aftershocks. The waiting-time distribution is found to also obey a power law. Furthermore, the event-event correlation is discussed, and the aging phenomenon and scaling property are observed. Comments are made on (non-)Markovianity of the aftershock process and on a possible relevance of glassy dynamics to the market system after the crash.


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