Research Highlights

An international team of interdisciplinary researchers has identified mathematical metrics to characterize the fragility of financial markets. The work titled “ Network geometry and market instability ” was recently published in the Royal Society Open Science journal. It sheds light on the higher-order architecture of financial systems and allows analysts to identify systemic risks like market bubbles or crashes.With the recent rush of small investors into stock options and reemerging interest in cryptocurrencies, talk of market instability, rising volatility, and bursting bubbles is surging. Unfortunately, “traditional economic theories cannot foresee events like the U.S. subprime mortgage collapse of 2007.” But now, a team of researchers from ten institutions around the world has achieved a great stride in characterizing stock market...

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