Topological Properties of the Minimal Spanning Tree in Korean and American Stock Markets

We investigate a factor that can affect the number of links of a specific stock in a network between stocks created by the minimal spanning tree (MST) method, by using individual stock data listed on the S&P500 and KOSPI. Among the common factors mentioned in the arbitrage pricing model (APM), widely acknowledged in the financial field, a representative market index is established as a possible factor. We found that the correlation distribution, $\rho_{ij}$, of 400 stocks taken from the S&P500 index shows a very similar with that of the Korean stock market and those deviate from the correlation distribution of time series removed a nonlinearity by the surrogate method. We also shows that the degree distribution of the MSTs for both stock markets follows a power-law distribution with the exponent $\zeta \sim$ 2.1, while the degree distribution of the time series eliminated a nonlinearity follows an exponential distribution with the exponent, $\delta \sim 0.77$. Furthermore the correlation, $\rho_{iM}$, between the degree k of individual stock, $i$, and the market index, $M$, follows a power-law distribution, $\sim k^{\gamma}$, with the exponent \gamma_{\textrm{S&P500}} \approx 0.16 and $\gamma_{\textrm{KOSPI}} \approx 0.14$, respectively. Thus, regardless of the markets, the indivisual stocks closely related to the common factor in the market, the market index, are likely to be located around the center of the network between stocks, while those weakly related to the market index are likely to be placed in the outside

Statistical Investigation of Connected Structures of Stock Networks in Financial Time Series

In this study, we have investigated factors of determination which can affect the connected structure of a stock network. The representative index for topological properties of a stock network is the number of links with other stocks. We used the multi-factor model, extensively acknowledged in financial literature. In the multi-factor model, common factors act as independent variables while returns of individual stocks act as dependent variables. We calculated the coefficient of determination, which represents the measurement value of the degree in which dependent variables are explained by independent variables. Therefore, we investigated the relationship between the number of links in the stock network and the coefficient of determination in the multi-factor model. We used individual stocks traded on the market indices of Korea, Japan, Canada, Italy and the UK. The results are as follows. We found that the mean coefficient of determination of stocks with a large number of links have higher values than those with a small number of links with other stocks. These results suggest that common factors are significantly deterministic factors to be taken into account when making a stock network. Furthermore, stocks with a large number of links to other stocks can be more affected by common factors.Comment: 11 pages, 2 figure

A new dynamic property of human consciousness

As pointed out by William James, "the consciousness is a dynamic process, not a thing" , during which short term integration is succeeded by another differentiated neural state through the continual interplay between the environment, the body, and the brain itself. Thus, the dynamic structure underlying successive states of the brain is important for understanding human consciousness as a process. In order to investigate the dynamic property of human consciousness, we developed a new method to reconstruct a state space from electroencephalogram(EEG), in which a trajectory, reflecting states of consciousness, is constructed based on the global information integration of the brain. EEGs were obtained from 14 subjects received an intravenous bolus of propopol. Here we show that the degree of human consciousness is directly associated with the information integration capacity of gamma wave, which is significantly higher in the conscious state than in the unconscious state. And we found a new time evolutional property of human consciousness. The conscious state showed a lower dimensional dynamic process which changed to a random-like process after loss of consciousness. This characteristic dynamic property, appeared only in the gamma band, might be used as an indicator to distinguish the conscious and unconscious states and also considered as an important fact for the human consciousness model

The effect of a market factor on information flow between stocks using minimal spanning tree

We empirically investigated the effects of market factors on the information flow created from N(N-1)/2 linkage relationships among stocks. We also examined the possibility of employing the minimal spanning tree (MST) method, which is capable of reducing the number of links to N-1. We determined that market factors carry important information value regarding information flow among stocks. Moreover, the information flow among stocks evidenced time-varying properties according to the changes in market status. In particular, we noted that the information flow increased dramatically during periods of market crises. Finally, we confirmed, via the MST method, that the information flow among stocks could be assessed effectively with the reduced linkage relationships among all links between stocks from the perspective of the overall market

Propofol Induction Reduces the Capacity for Neural Information Integration: Implications for the Mechanism of Consciousness and General Anesthesia

The cognitive unbinding paradigm suggests that the synthesis of cognitive information is attenuated by general anesthesia. Here, we investigated the functional organization of brain activities in the conscious and anesthetized states, based on characteristic functional segregation and integration of electroencephalography (EEG). EEG recordings were obtained from 14 subjects undergoing induction of general anesthesia with propofol. We quantified changes in mean information integration capacity in each band of the EEG. After induction with propofol, mean information integration capacity was reduced most prominently in the gamma band of the EEG (p=0.0001). Furthermore, we demonstrate that loss of consciousness is reflected by the breakdown of the spatiotemporal organization of gamma waves. Induction of general anesthesia with propofol reduces the capacity for information integration in the brain. These data directly support the information integration theory of consciousness and the cognitive unbinding paradigm of general anesthesia

Relationship of topology, multiscale phase synchronization, and state transitions in human brain networks

How the brain reconstitutes consciousness and cognition after a major perturbation like general anesthesia is an important question with significant neuroscientific and clinical implications. Recent empirical studies in animals and humans suggest that the recovery of consciousness after anesthesia is not random but ordered. Emergence patterns have been classified as progressive and abrupt transitions from anesthesia to consciousness, with associated differences in duration and electroencephalogram(EEG) properties. We hypothesized that the progressive and abrupt emergence patterns from the unconscious state are associated with, respectively, continuous and discontinuous synchronization transitions in functional brain networks. The discontinuous transition is explainable with the concept of explosive synchronization, which has been studied almost exclusively in network science. We used the Kuramato model, a simple oscillatory network model, to simulate progressive and abrupt transitions in anatomical human brain networks acquired from diffusion tensor imaging (DTI) of 82 brain regions. To facilitate explosive synchronization, distinct frequencies for hub nodes with a large frequency disassortativity (i.e., higher frequency nodes linking with lower frequency nodes, or vice versa) were applied to the brain network. In this simulation study, we demonstrated that both progressive and abrupt transitions follow distinct synchronization processes at the individual node, cluster, and global network levels. The characteristic synchronization patterns of brain regions that are ��progressive and earlier�� or ��abrupt but delayed�� account for previously reported behavioral responses of gradual and abrupt emergence from the unconscious state. The characteristic network synchronization processes observed at different scales provide new insights into how regional brain functions are reconstituted during progressive and abrupt emergence from the unconscious state. This theoretical approach also offers a principled explanation of how the brain reconstitutes consciousness and cognitive functions after physiologic (sleep), pharmacologic (anesthesia), and pathologic (coma) perturbations. ? 2017 Kim, Kim, Mashour and Lee.115sciescopu