Explanatory Change Detection in Financial Markets by Graph-Based Entropy and Inter-Domain Linkage

In this study, we analyzed structural changes in financial markets under COVID-19 to support investors’ investment decisions. Because an explanation of these changes is necessary to respond appropriately to said changes and prepare for similar major changes in the future, we visualized the financial...

Descripción completa

Detalles Bibliográficos
Autores principales: Nishikawa, Yosuke, Yoshino, Takaaki, Sugie, Toshiaki, Nakata, Yoshiyuki, Itou, Kakeru, Ohsawa, Yukio
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9778065/
https://www.ncbi.nlm.nih.gov/pubmed/36554130
http://dx.doi.org/10.3390/e24121726
_version_ 1784856264849752064
author Nishikawa, Yosuke
Yoshino, Takaaki
Sugie, Toshiaki
Nakata, Yoshiyuki
Itou, Kakeru
Ohsawa, Yukio
author_facet Nishikawa, Yosuke
Yoshino, Takaaki
Sugie, Toshiaki
Nakata, Yoshiyuki
Itou, Kakeru
Ohsawa, Yukio
author_sort Nishikawa, Yosuke
collection PubMed
description In this study, we analyzed structural changes in financial markets under COVID-19 to support investors’ investment decisions. Because an explanation of these changes is necessary to respond appropriately to said changes and prepare for similar major changes in the future, we visualized the financial market as a graph. The hypothesis was based on expertise in the financial market, and the graph was analyzed from a detailed perspective by dividing the graph into domains. We also designed an original change-detection indicator based on the structure of the graph. The results showed that the original indicator was more effective than the comparison method in terms of both the speed of response and accuracy. Explanatory change detection of this method using graphs and domains allowed investors to consider specific strategies.
format Online
Article
Text
id pubmed-9778065
institution National Center for Biotechnology Information
language English
publishDate 2022
publisher MDPI
record_format MEDLINE/PubMed
spelling pubmed-97780652022-12-23 Explanatory Change Detection in Financial Markets by Graph-Based Entropy and Inter-Domain Linkage Nishikawa, Yosuke Yoshino, Takaaki Sugie, Toshiaki Nakata, Yoshiyuki Itou, Kakeru Ohsawa, Yukio Entropy (Basel) Article In this study, we analyzed structural changes in financial markets under COVID-19 to support investors’ investment decisions. Because an explanation of these changes is necessary to respond appropriately to said changes and prepare for similar major changes in the future, we visualized the financial market as a graph. The hypothesis was based on expertise in the financial market, and the graph was analyzed from a detailed perspective by dividing the graph into domains. We also designed an original change-detection indicator based on the structure of the graph. The results showed that the original indicator was more effective than the comparison method in terms of both the speed of response and accuracy. Explanatory change detection of this method using graphs and domains allowed investors to consider specific strategies. MDPI 2022-11-25 /pmc/articles/PMC9778065/ /pubmed/36554130 http://dx.doi.org/10.3390/e24121726 Text en © 2022 by the authors. https://creativecommons.org/licenses/by/4.0/Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
spellingShingle Article
Nishikawa, Yosuke
Yoshino, Takaaki
Sugie, Toshiaki
Nakata, Yoshiyuki
Itou, Kakeru
Ohsawa, Yukio
Explanatory Change Detection in Financial Markets by Graph-Based Entropy and Inter-Domain Linkage
title Explanatory Change Detection in Financial Markets by Graph-Based Entropy and Inter-Domain Linkage
title_full Explanatory Change Detection in Financial Markets by Graph-Based Entropy and Inter-Domain Linkage
title_fullStr Explanatory Change Detection in Financial Markets by Graph-Based Entropy and Inter-Domain Linkage
title_full_unstemmed Explanatory Change Detection in Financial Markets by Graph-Based Entropy and Inter-Domain Linkage
title_short Explanatory Change Detection in Financial Markets by Graph-Based Entropy and Inter-Domain Linkage
title_sort explanatory change detection in financial markets by graph-based entropy and inter-domain linkage
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9778065/
https://www.ncbi.nlm.nih.gov/pubmed/36554130
http://dx.doi.org/10.3390/e24121726
work_keys_str_mv AT nishikawayosuke explanatorychangedetectioninfinancialmarketsbygraphbasedentropyandinterdomainlinkage
AT yoshinotakaaki explanatorychangedetectioninfinancialmarketsbygraphbasedentropyandinterdomainlinkage
AT sugietoshiaki explanatorychangedetectioninfinancialmarketsbygraphbasedentropyandinterdomainlinkage
AT nakatayoshiyuki explanatorychangedetectioninfinancialmarketsbygraphbasedentropyandinterdomainlinkage
AT itoukakeru explanatorychangedetectioninfinancialmarketsbygraphbasedentropyandinterdomainlinkage
AT ohsawayukio explanatorychangedetectioninfinancialmarketsbygraphbasedentropyandinterdomainlinkage

Ejemplares similares