AUTHOR=Samal Areejit , Kumar Sunil , Yadav Yasharth , Chakraborti Anirban TITLE=Network-centric Indicators for Fragility in Global Financial Indices JOURNAL=Frontiers in Physics VOLUME=8 YEAR=2021 URL=https://www.frontiersin.org/journals/physics/articles/10.3389/fphy.2020.624373 DOI=10.3389/fphy.2020.624373 ISSN=2296-424X ABSTRACT=

Over the last 2 decades, financial systems have been studied and analyzed from the perspective of complex networks, where the nodes and edges in the network represent the various financial components and the strengths of correlations between them. Here, we adopt a similar network-based approach to analyze the daily closing prices of 69 global financial market indices across 65 countries over a period of 2000–2014. We study the correlations among the indices by constructing threshold networks superimposed over minimum spanning trees at different time frames. We investigate the effect of critical events in financial markets (crashes and bubbles) on the interactions among the indices by performing both static and dynamic analyses of the correlations. We compare and contrast the structures of these networks during periods of crashes and bubbles, with respect to the normal periods in the market. In addition, we study the temporal evolution of traditional market indicators, various global network measures, and the recently developed edge-based curvature measures. We show that network-centric measures can be extremely useful in monitoring the fragility in the global financial market indices.