Foreign exchange market fluctuations as random walk in demarcated complex plane

dc.creatorBantang, Johnrob
dc.creatorLim, May
dc.creatorCastro, Patricia Arielle
dc.creatorMonterola, Christopher
dc.creatorSaloma, Caesar
dc.date2003-08-15
dc.date.accessioned2026-07-07T12:11:25Z
dc.date.available2026-07-07T12:11:25Z
dc.descriptionWe show that time-dependent fluctuations $\{Δx\}$ in foreign exchange rates are accurately described by a random walk in a complex plane that is demarcated into the gain (+) and loss (-) sectors. $\{Δx\}$ is the outcome of $N$ random steps from the origin and $|Δx|$ is the square of the Euclidean distance of the final $N$-th step position. Sign of $\{Δx(t)\}$ is set by the $N$-th step location in the plane. The model explains not only the exponential statistics of the probability density of $\{Δx\}$ for G7 markets but also its observed asymmetry, and power-law dependent broadening with increasing time delay.
dc.identifierhttps://arxiv.org/abs/physics/0308062
dc.identifierhttp://arxiv.org/abs/physics/0308062
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/210216
dc.subjectComputational Physics
dc.subjectStatistical Finance
dc.titleForeign exchange market fluctuations as random walk in demarcated complex plane
dc.typetext

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