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Financial Market Dynamics: A Synergetic Perspective

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Encyclopedia of Complexity and Systems Science

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Glossary

Econophysics:

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...

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Author information

Authors and Affiliations

  1. Cerebellum Capital, San Francisco, CA, USA

    Lisa Borland

Authors
  1. Lisa Borland
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Corresponding author

Correspondence to Lisa Borland .

Editor information

Editors and Affiliations

  1. Ramtech Ltd., Larkspur, California, USA

    Robert A. Meyers

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Borland, L. (2018). Financial Market Dynamics: A Synergetic Perspective. In: Meyers, R. (eds) Encyclopedia of Complexity and Systems Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-27737-5_694-1

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  • DOI: https://doi.org/10.1007/978-3-642-27737-5_694-1

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-27737-5

  • Online ISBN: 978-3-642-27737-5

  • eBook Packages: Springer Reference Physics and AstronomyReference Module Physical and Materials ScienceReference Module Chemistry, Materials and Physics

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