Loop-corrected belief propagation for lattice spin models

Belief propagation (BP) is a message-passing method for solving probabilistic graphical models. It is very successful in treating disordered models (such as spin glasses) on random graphs. On the other hand, finite-dimensional lattice models have an abundant number of short loops, and the BP method is still far from being satisfactory in treating the complicated loop-induced correlations in these systems. Here we propose a loop-corrected BP method to take into account the effect of short loops in lattice spin models. We demonstrate, through an application to the square-lattice Ising model, that loop-corrected BP improves over the naive BP method significantly. We also implement loop-corrected BP at the coarse-grained region graph level to further boost its performance.Comment: 11 pages, minor changes with new references added. Final version as published in EPJ

Quantifying immediate price impact of trades based on the kk-shell decomposition of stock trading networks

Traders in a stock market exchange stock shares and form a stock trading network. Trades at different positions of the stock trading network may contain different information. We construct stock trading networks based on the limit order book data and classify traders into $k$ classes using the $k$-shell decomposition method. We investigate the influences of trading behaviors on the price impact by comparing a closed national market (A-shares) with an international market (B-shares), individuals and institutions, partially filled and filled trades, buyer-initiated and seller-initiated trades, and trades at different positions of a trading network. Institutional traders professionally use some trading strategies to reduce the price impact and individuals at the same positions in the trading network have a higher price impact than institutions. We also find that trades in the core have higher price impacts than those in the peripheral shell.Comment: 6 pages including 3 figures and 1 tabl