DescriptionWhile executing individual trading strategies in the stock markets, investors form unobservable indirect relationships in terms of behavioral similarities, which we call investor networks. The structure of these networks is important not only from the perspective of individual members, but
also from that of the whole market. By undergoing a complex network analysis of the stock market, we want to shed light on the relation between
individual investor behavior patterns to the emergence of collective market equilibrium. We investigate investor collective behavior in stock markets as investors taking different sides in transactions form strategy based trading structures. We will leverage our previously introduced multilayer
aggregation framework to determine the investor groups that balance the scales of supply and demand in the stock exchange under different market
conditions. We observed the existence of two clearly defined opposing counter-parties that exchange their roles as liquidity takers and providers.
These trading structures emerge at the times of crisis, during extraordinary bad and good days, and stabilize the markets. We aim to show the power
and usefulness of network methodologies to understand and visualize complex financial concepts.
|Period||16 Dec 2018|
|Event title||The 12th International Conference on Computational and Financial Econometrics: null|
|Degree of Recognition||International|
Country of activity