2 9 N ov 2 00 6 Correlation matrix decomposition of WIG 20 intraday fluctuations

نویسندگان

  • R. Rak
  • S. Drożdż
  • J. Kwapień
  • P. Oświȩcimka
چکیده

Using the correlation matrix formalism we study the temporal aspects of the Warsaw Stock Market evolution as represented by the WIG20 index. The high frequency (1 min) WIG20 recordings over the time period between January 2001 and October 2005 are used. The entries of the correlation matrix considered here connect different distinct periods of the stock market dynamics, like days or weeks. Such a methodology allows to decompose the price fluctuations into the orthogonal eigensignals that quantify different modes of the underlying dynamics. The magnitudes of the corresponding eigenvalues reflect the strengths of such modes. One observation made in this paper is that strength of the daily trend in the WIG20 dynamics systematically decreases when going from 2001 to 2005. Another is that large events in the return fluctuations are primarily associated with a few most collective eigensignals.

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تاریخ انتشار 2006