Random Matrix Theory and Cross-correlations in Global Financial Indices and Local Stock Market Indices

We analyzed cross-correlations between price fluctuations of global financial indices (20 daily stock indices over the world) and local indices (daily indices of 200 companies in the Korean stock market) by using random matrix theory (RMT). We compared eigenvalues and components of the largest and the second largest eigenvectors of the cross-correlation matrix before, during, and after the global financial the crisis in the year 2008. We find that the majority of its eigenvalues fall within the RMT bounds [{\lambda}_, {\lambda}+], where {\lambda}_- and {\lambda}_+ are the lower and the upper bounds of the eigenvalues of random correlation matrices. The components of the eigenvectors for the largest positive eigenvalues indicate the identical financial market mode dominating the global and local indices. On the other hand, the components of the eigenvector corresponding to the second largest eigenvalue are positive and negative values alternatively. The components before the crisis change sign during the crisis, and those during the crisis change sign after the crisis. The largest inverse participation ratio (IPR) corresponding to the smallest eigenvector is higher after the crisis than during any other periods in the global and local indices. During the global financial the crisis, the correlations among the global indices and among the local stock indices are perturbed significantly. However, the correlations between indices quickly recover the trends before the crisis

Interspecific competition underlying mutualistic networks

The architecture of bipartite networks linking two classes of constituents is affected by the interactions within each class. For the bipartite networks representing the mutualistic relationship between pollinating animals and plants, it has been known that their degree distributions are broad but often deviate from power-law form, more significantly for plants than animals. Here we consider a model for the evolution of the mutualistic networks and find that their topology is strongly dependent on the asymmetry and non-linearity of the preferential selection of mutualistic partners. Real-world mutualistic networks analyzed in the framework of the model show that a new animal species determines its partners not only by their attractiveness but also as a result of the competition with pre-existing animals, which leads to the stretched-exponential degree distributions of plant species.Comment: 5 pages, 3 figures, accepted version in PR

Scaling of nestedness in complex networks

Nestedness characterizes the linkage pattern of networked systems, indicating the likelihood that a node is linked to the nodes linked to the nodes with larger degrees than it. Networks of mutualistic relationship between distinct groups of species in ecological communities exhibit such nestedness, which is known to support the network robustness. Despite such importance, quantitative characteristics of nestedness is little understood. Here we take graph-theoretic approach to derive the scaling properties of nestedness in various model networks. Our results show how the heterogeneous connectivity patterns enhance nestedness. Also we find that the nestedness of bipartite networks depend sensitively on the fraction of different types of nodes, causing nestedness to scale differently for nodes of different types.Comment: 9 pages, 4 figures, final versio