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"The fluctuation of stock prices.
The reason that we use interacting particle systems to investigate the fluctuation of stock markets is that all of these systems consist of subunits.
An oil price shock in period 3 also accounts for about 99.80% of the variation in the fluctuation of stock returns, and this continues through period 20.
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Figure 2 The fluctuations of stock prices and the corresponding returns.
Statistical and Fourier analysis methods of time series representing fluctuations of stock market in general and Indian stock markets in particular are well known.
So DEFES is able to cope with the fluctuations of stock price values and it can be used as a suitable tool to simulation behavior of stock price.
We compare the statistics of the cross-correlation matrix —whose elements Cij are the correlation coefficients of price fluctuations of stock i and j against a random matrix having the same symmetry properties.
While research has shown that networks of interlocking directorates facilitate the transmission of information between corporations, little is known about the extent to which such interlocking networks can explain the fluctuations of stock price returns.
As the stock markets are becoming deregulated worldwide, the modeling of the dynamics of the forward prices is becoming a key problem in risk management, physical assets valuation and derivatives pricing, see [1 6], and it is also important to understand the statistical properties of fluctuations of stock price in globalized securities markets, for example see [7, 8].
When the study authors looked at fluctuations of stock prices in the months before and after clinical trial results were revealed, they found a disturbing pattern: In the 120 trading days before the public announcement of a positive trial result, the sponsoring company's stock surged in value 13.7% on average.
The 0.119% variation in the stock return is due to the shock from oil price in period 2. Additionally, a shock to oil price causes a 0.124% fluctuation in the variation of stock returns in period 3. On the other hand, in period 20 (long term), a shock in the oil price causes a 0.477% fluctuation in stock returns.
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