arXiv subjects

Omer Suleman

Publications and source records attributed to Omer Suleman.

4 recordsLinked to original sources

arXiv2006

Impact of Unexpected Events, Shocking News and Rumours on Foreign Exchange Market Dynamics

We analyze the dynamical response of the world's financial community to various types of unexpected events, including the 9/11 terrorist attacks as they unfolded on a minute-by-minute basis. We find that there are various 'species' of news, characterized by how quickly the news get absorbed, how much meaning and importance is assigned to it by the community, and what subsequent actions are then taken. For example, the response to the unfolding events of 9/11 shows a gradual collective understanding of what was happening, rather than an immediate realization. For news items which are not simple economic statements, and hence whose implications are not immediately obvious, we uncover periods of collective discovery during which collective opinions seem to oscillate in a remarkably synchronized way. In the case of a rumour, our findings also provide a concrete example of contagion in inter-connected communities. Practical applications of this work include the possibility of producing selective newsfeeds for specific communities, based on their likely impact.

physics.soc-ph↗

arXiv2005

How does Europe Make Its Mind Up? Connections, cliques, and compatibility between countries in the Eurovision Song Contest

We investigate the complex relationships between countries in the Eurovision Song Contest, by recasting past voting data in terms of a dynamical network. Despite the British tendency to feel distant from Europe, our analysis shows that the U.K. is remarkably compatible, or 'in tune', with other European countries. Equally surprising is our finding that some other core countries, most notably France, are significantly 'out of tune' with the rest of Europe. In addition, our analysis enables us to confirm a widely-held belief that there are unofficial cliques of countries -- however these cliques are not always the expected ones, nor can their existence be explained solely on the grounds of geographical proximity. The complexity in this system emerges via the group 'self-assessment' process, and in the absence of any central controller. One might therefore speculate that such complexity is representative of many real-world situations in which groups of 'agents' establish their own inter-relationships and hence ultimately decide their own fate. Possible examples include groups of individuals, societies, political groups or even governments.

physics.soc-ph↗

arXiv2005

What shakes the FX tree? Understanding currency dominance, dependence and dynamics

There is intense interest in understanding the stochastic and dynamical properties of the global Foreign Exchange (FX) market, whose daily transactions exceed one trillion US dollars. This is a formidable task since the FX market is characterized by a web of fluctuating exchange rates, with subtle inter-dependencies which may change in time. In practice, traders talk of particular currencies being 'in play' during a particular period of time -- yet there is no established machinery for detecting such important information. Here we apply the construction of Minimum Spanning Trees (MSTs) to the FX market, and show that the MST can capture important features of the global FX dynamics. Moreover, we show that the MST can help identify momentarily dominant and dependent currencies.

physics.soc-ph↗

arXiv2004

Detecting a Currency's Dominance or Dependence using Foreign Exchange Network Trees

In a system containing a large number of interacting stochastic processes, there will typically be many non-zero correlation coefficients. This makes it difficult to either visualize the system's inter-dependencies, or identify its dominant elements. Such a situation arises in Foreign Exchange (FX) which is the world's biggest market. Here we develop a network analysis of these correlations using Minimum Spanning Trees (MSTs). We show that not only do the MSTs provide a meaningful representation of the global FX dynamics, but they also enable one to determine momentarily dominant and dependent currencies. We find that information about a country's geographical ties emerges from the raw exchange-rate data. Most importantly from a trading perspective, we discuss how to infer which currencies are `in play' during a particular period of time.

cond-mat.other↗