scholarly journals The Flow of Information in Trading: An Entropy Approach to Market Regimes

Entropy ◽  
2020 ◽  
Vol 22 (9) ◽  
pp. 1064
Author(s):  
Anqi Liu ◽  
Jing Chen ◽  
Steve Y. Yang ◽  
Alan G. Hawkes
Keyword(s):  
Information Flows ◽  
Trading Behavior ◽  
Market Returns ◽  
Causal Inferences ◽  
Mixed Regime ◽  
Trading Activities ◽  
Market Regimes ◽  
Block Entropy ◽  
News Sentiment ◽  
Flow Of Information

In this study, we use entropy-based measures to identify different types of trading behaviors. We detect the return-driven trading using the conditional block entropy that dynamically reflects the “self-causality” of market return flows. Then we use the transfer entropy to identify the news-driven trading activity that is revealed by the information flows from news sentiment to market returns. We argue that when certain trading behavior becomes dominant or jointly dominant, the market will form a specific regime, namely return-, news- or mixed regime. Based on 11 years of news and market data, we find that the evolution of financial market regimes in terms of adaptive trading activities over the 2008 liquidity and euro-zone debt crises can be explicitly explained by the information flows. The proposed method can be expanded to make “causal” inferences on other types of economic phenomena.

Public Information Flows in Rural Australia

1983 ◽  
Vol 15 (2) ◽  
pp. 255-263 ◽  
Author(s):  
D J Walmsley
Keyword(s):  
Complex System ◽  
New England ◽  
Private Information ◽  
Publishing Industry ◽  
News Coverage ◽  
Public Information ◽  
Information Flows ◽  
Face To Face ◽  
South Wales ◽  
Flow Of Information

Geographical studies of the transmission of information have focussed overwhelmingly on private information flows based on direct, face-to-face contact. Very little attention has been directed to media-based public information flows despite the potential importance of this type of flow in regional development. Yet an examination of newspaper content for the New England region of New South Wales for 1971 and 1977 reveals that major changes are occurring in newspaper-based information flows. Rural newspapers are becoming increasingly aspatial and parochial in their news coverage and the flow of information between rural centres is changing from a complex system to a less complex system. The reasons for these trends are not entirely clear, but may relate to economic and technological changes within the newspaper publishing industry as well as to the fortunes of regional policy in Australia.

Cybernetics and Religion

2015 ◽  
Author(s):  
Noreen Herzfeld
Keyword(s):  
Human Person ◽  
Human Interaction ◽  
Information Flows ◽  
Human Beings ◽  
Computer Design ◽  
Social Competition ◽  
Human Relationships ◽  
Production Distribution ◽  
Unique Identity ◽  
Flow Of Information

Cybernetics is the study of systems of control and communication. While often used to refer to control systems in or by machines, such as computers, cybernetic theory can be applied to control and communication within a variety of areas, including human interaction and systems of production, distribution, or design, systems that may be comprised of humans, machines, or a combination of humans and machines. A cybernetic view of any system focuses on information and the flow of information, for that is what effects both control and communication. While cybernetics is a concept that can be used to describe any system through which information flows, today most human generated information flows through computers or computer controlled networks; thus in the popular mind, cybernetics is frequently used as a referent to anything pertaining to computer design, use, and human-computer interaction. A cybernetic view of the human person finds each person’s identity in the information comprising our memories, feelings, emotions, and thoughts. Human beings are considered in this view to be biological machines, each of whose unique identity is found in the patterns stored in the neuronal structures of the brain. In such an anthropology, there is no soul. Each of us is merely a vast and ever-changing collection of information. However, there is the possibility of a form of immortality effected by uploading the human brain to a computer. Cybernetics is, historically, closely associated with the field of artificial intelligence. Though experiencing initial successes in fields such as game playing or mathematics, producing a full, human-like intelligence has so far been limited by the difficult problems of giving a robot a body similar to ours, in order to experience the world as we do, and the necessity of emotion for true cognition and autonomous decision making. We have come closer to realizing the dreams of cybernetics by using the computer to mediate human-to-human relationships, especially through social media, such as Facebook and Twitter. This has implications for religion, in that the widespread dissemination of a variety of religious materials and discussions has led to increased contact with other religions, increased conversions, and an increase in fundamentalism. Cybernetic theories can also be used to describe the origin of religion and the development of ethical systems. In general, a cybernetic view of the development of religion focuses on religion as an adaptive mechanism for the survival of groups as they evolve and change in an atmosphere of physical and social competition.

scholarly journals Reticent Digital Diasporas in Times of Crisis

2020 ◽  
Vol 12 (1-2) ◽  
pp. 38-63
Author(s):  
Simon Turner ◽  
Lidewyde Berckmoes
Keyword(s):  
The Netherlands ◽  
Emotion Work ◽  
Information Flows ◽  
Main Argument ◽  
Digital Platforms ◽  
Flow Of Information ◽  
Do So

Abstract Based on fieldwork amongst Burundians in Rwanda, the Netherlands and Belgium, this article explores how information circulates transnationally in times of political and violent crisis and how ordinary members of the diaspora seek to manage these flows of information. Our main argument is that conflict in the homeland creates a massive flow of information across various digital platforms and that while members of the diaspora eagerly take part in consuming and sharing this information, they do so reticently. Rather than simply explore the information flows, their intensity, their ‘spread’ or their content, we explore how individuals in the diaspora engage in emotion work, as they struggle between being ‘hailed’ by the images and messages flowing with ever-increasing intensity, speed and urgency and their reticence towards getting too involved.

scholarly journals Assessment of personal data safety parameters in power social networks based on topology

2020 ◽  
Author(s):  
V. A. Savchenko ◽  
◽  
V. M. Akhramovych ◽  
M. V. Akulinicheva
Keyword(s):  
Social Networks ◽  
Path Length ◽  
Social Impact ◽  
Personal Data ◽  
Dynamic Processes ◽  
Information Flows ◽  
Topological Features ◽  
Negative Effect ◽  
Safety Parameters ◽  
Flow Of Information

The article investigates the model of the power social network, which, in contrast to classical approaches, allows to analyze the dynamic processes of interaction of individual agents within the network, in particular the dissemination of information about social impact. Expansion of social networks, connection of new nodes leads to an increase in the load on the system as a whole and negatively affects the protection of users, including their personal data. Traditionally, security parameters in social networks are studied using statistical methods and generalized mathematical dependencies and are fragmentary. The aim of the article is to develop a methodology for assessing the security parameters of personal data for networks with a degree distribution of connectivity of nodes based on the study of their topological features. The research is carried out on the basis of the classical Barabashi-Albert model using the principle of preferential connection, which puts the probability of making new connections depending on the number of existing connections of the node. A larger node means more opportunities to pick up new connections added to the network. The main security parameters are: the degree of the node, the average path length, the probability of joining new nodes, the clustering factor, the correlation between the degrees of neighboring nodes. It is shown that increasing the degree of the node and the length of the middle path has a negative effect on the protection of personal data, as it increases the likelihood of interception of information. Also, with increasing clustering factor, the flow of information increases, which leads to an increase in the load on the protection system and negatively affects the protection. Correlation between the degrees of neighboring nodes affects the redistribution of information flows and can, depending on the degree of nodes, both negatively and positively affect the protection. Modeling for networks of different scales is carried out and conclusions on expediency of application of a technique are made.

MODELING THE RISK AND RETURN RELATION CONDITIONAL ON MARKET VOLATILITY AND MARKET CONDITIONS

2005 ◽  
Vol 08 (01) ◽  
pp. 75-95 ◽  
Author(s):  
DON U. A. GALAGEDERA ◽  
ROBERT FAFF
Keyword(s):  
Risk Premium ◽  
Market Volatility ◽  
Market Model ◽  
Pricing Model ◽  
Market Returns ◽  
Market Conditions ◽  
Cross Sectional ◽  
Beta Risk ◽  
Market Regimes ◽  
Volatility Regimes

This paper investigates whether the risk-return relation varies, depending on changing market volatility and up/down market conditions. Three market regimes based on the level of conditional volatility of market returns are specified — "low", "neutral" and "high". The market model is extended to allow for these three market regimes and a three-beta asset-pricing model is developed. For a set of US industry sector indices using a cross-sectional regression, we find that the beta risk premium in the three market volatility regimes is priced. These significant results are uncovered only in the pricing model that accommodates up/down market conditions.

scholarly journals Early lock-in of structured and specialised information flows during neural development

2021 ◽  
Author(s):  
David P. Shorten ◽  
Viola Priesemann ◽  
Michael Wibral ◽  
Joseph T. Lizier
Keyword(s):  
Information Processing ◽  
Information Flow ◽  
Neural Development ◽  
Temporal Correlation ◽  
Information Flows ◽  
Estimation Task ◽  
Neuronal Communication ◽  
Substantial Progress ◽  
Lock In ◽  
Flow Of Information

The brains of many organisms are capable of complicated distributed computation underpinned by a highly advanced information processing capacity. Although substantial progress has been made towards characterising the information flow component of this capacity in mature brains, there is a distinct lack of work characterising its emergence during neural development. This lack of progress has been largely driven by the lack of effective estimators of information processing operations for the spiking data available for developing neural networks. Here, we leverage recent advances in this estimation task in order to quantify the changes in information flow during development. We find that the quantity of information flowing across these networks undergoes a dramatic increase across development. Moreover, the spatial structure of these flows is locked-in during early development, after which there is a substantial temporal correlation in the information flows across recording days. We analyse the flow of information during the crucial periods of population bursts. We find that, during these bursts, nodes undertake specialised computational roles as either transmitters, mediators or receivers of information, with these roles tending to align with their spike ordering - either early, mid or late in the bursts. That the nodes identified as information flow mediators tend to spike mid burst aligns with conjecture that nodes spiking in this position play an important role as brokers of neuronal communication. Finally, it was found that the specialised computational roles occupied by nodes during bursts tend to be locked in early.

Global Privacy Issues

2017 ◽  
Author(s):  
Priscilla M. Regan
Keyword(s):  
Communication Systems ◽  
Personal Information ◽  
Civil Liberties ◽  
Information Flows ◽  
Global Issues ◽  
Data Flows ◽  
The Us ◽  
Private Sector Organizations ◽  
Flow Of Information ◽  
Privacy Issues

Despite cultural differences, privacy tends to be rather universally viewed as important in protecting some realms of life that are seen as off limits to society more generally. Yet privacy has also been the cause of significant global issues over the years. In the late 1960s and early 1970s, government agencies and private sector organizations increasingly adopted computers to maintain records, precipitating a concern with the rights of the individuals who were subjects of that data and with the responsibilities of the organizations processing the information. During the 1980s, international and regional bodies recognized that domestic laws could affect the flow of personal information into and out of a country, bringing scholarly and policy attention to the issue of transborder data flows. Somewhat paralleling the principally business dominated debate and analyses over transborder data flows was a broader discussion about privacy issues resulting from global communication and information systems, particularly the internet, during the 1990s. The focus in policy and scholarship was less on variations in national laws and more on two features of networked communication systems: first, the technical infrastructure supporting the flow of information; and second, the globalization of communication systems and information flows. Later on, the privacy landscape and discourse changed dramatically throughout the world after the terrorist attacks in the US on September 11, 2001. Concerns about privacy and civil liberties were trumped by concerns about security and identifying possible terrorists.

AVALANCHE DYNAMICS AND TRADING FRICTION EFFECTS ON STOCK MARKET RETURNS

1999 ◽  
Vol 10 (06) ◽  
pp. 1149-1162 ◽  
Author(s):  
GIULIA IORI
Keyword(s):  
Stock Market ◽  
Trading Volume ◽  
Feedback Mechanism ◽  
Trading Behavior ◽  
Market Returns ◽  
Stock Market Returns ◽  
Demand And Supply ◽  
Volatility Clustering ◽  
Trade Friction ◽  
Trading Friction

We propose a model with heterogeneous interacting traders which can explain some of the stylized facts of stock market returns. A generalized version of the Random Field Ising Model (RFIM) is introduced to describe trading behavior. Imitation effects, which induce agents to trade, can generate avalanches in trading volume and large gaps in demand and supply. A trade friction is introduced which, by responding to price movements, creates a feedback mechanism on future trading and generates volatility clustering.

Cross-Regional Differences in News Tone and Local Stock Ownership

2020 ◽  
Author(s):  
Taylan Mavruk
Keyword(s):  
Regional Differences ◽  
Stock Ownership ◽  
Individual Investors ◽  
Trading Behavior ◽  
Attention Effect ◽  
Trading Activities ◽  
The Difference ◽  
News Event ◽  
Media Data ◽  
Local Stock

This study examines cross-regional differences in news tone for the same news event and relates it to local stock ownership of individual investors using a combination of detailed investor and media data. The results show that news tone amplifies the overall attention effect and decreases the difference between the trading activities of local and nonlocal investors when locally sourced news is republished across regions. In general, trading activity decreases for given republished news, but it still exists because the same news event garners attention as it diffuses to other regional outlets in a different news tone. Overall, individual investors seem to realize that the news is stale but expect subsequent price reversals following the republished news, thus showing news-contrarian trading behavior. Furthermore, they distinguish good firms from bad firms, indicating that adverse selection is partially responsible for the observed news-contrarian trading behaviors. This paper was accepted by David Simchi-Levi, finance.

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