| Abstract: |
The stock market is a complex system that affects economic and financial
activities around the world. Analysis of stock price data can improve our
understanding of the past price movements of stocks. In this work, we develop
a method to determine the highly interconnected subsystems of the stock
market. Our method relies on a k-core decomposition scheme to analyze large
networks. Our approach illustrates that the stock market is a nearly
decomposable system which comprises hierarchic subsystems. This work also
presents results from the analysis of a network derived from a large data set
of stock prices. This network analysis technique is a new promising approach
to analyze and classify stocks based on price interactions and to decompose
the complex system embodied in the stock market. |