Encyclopedia of Complexity and Systems Science

Living Edition
| Editors: Robert A. Meyers

Financial Market Dynamics: A Synergetic Perspective

  • Lisa Borland
Living reference work entry
DOI: https://doi.org/10.1007/978-3-642-27737-5_694-1



An interdisciplinary research field where theories and methods originally developed by physicists are used to model financial markets and economic systems.

Market panic

A state in which correlations among stock returns are very high together with highly elevated levels of the VIX Index.

Market volatility

Market volatility is the uncertainty of price moves of a given market (rather than a single stock), such as the US stock market, which is well represented by the S&P 500 Index.

Stock returns

The relative change in value of the price of a stock over a particular time horizon (e.g., 1 day or 1 year).

Stylized facts

Statistical characteristics of financial time series that appear to be somewhat universal across asset classes and geographies. These include volatility clustering, long-range memory in absolute price returns, and the fat-tailed distribution of price returns that persist over horizons ranging from intraday to weeks.

The VIX Index

Also known as the “fear”...

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© Springer Science+Business Media LLC 2018

Authors and Affiliations

  1. 1.Cerebellum CapitalSan FranciscoUSA