>> Center for Computational Physics


Journal of Physics: Conference Series 627, 012025 (2015)

ISSN: 1742-6596

Simple grading model for financial markets

Chu Thuy Anh, Nguyen Tri Lan and Nguyen Ai Viet

A simple way to estimate and grade a financial market by comparison the evolution process and the shape of distribution functions was proposed. In normal working state of financial market, the shape of distribution functions have one-peak form and change from Boltzmann-like to Gaussian-like distributions, while in risk moment might have two-peak form. The grad of financial markets was characterized by overlap area of initial and final distribution functions, and for risk degree by the separation between two shoulders of distribution function. The meaning of Levi tails of distribution and laws of general entropy and information was discussed.

DOI: doi:10.1088/1742-6596/627/1/012025