Complex systems approach to natural language

The review summarizes the main methodological concepts used in studying natural language from the perspective of complexity science and documents their applicability in identifying both universal and system-specific features of language in its written representation. Three main complexity-related research trends in quantitative linguistics are covered. The first part addresses the issue of word frequencies in texts and demonstrates that taking punctuation into consideration restores scaling whose violation in the Zipf's law is often observed for the most frequent words. The second part introduces methods inspired by time series analysis, used in studying various kinds of correlations in written texts. The related time series are generated on the basis of text partition into sentences or into phrases between consecutive punctuation marks. It turns out that these series develop features often found in signals generated by complex systems, like long-range correlations or (multi)fractal structures. Moreover, it appears that the distances between punctuation marks comply with the discrete variant of the Weibull distribution. In the third part, the application of the network formalism to natural language is reviewed, particularly in the context of the so-called word-adjacency networks. Parameters characterizing topology of such networks can be used for classification of texts, for example, from a stylometric perspective. Network approach can also be applied to represent the organization of word associations. Structure of word-association networks turns out to be significantly different from that observed in random networks, revealing genuine properties of language. Finally, punctuation seems to have a significant impact not only on the language's information-carrying ability but also on its key statistical properties, hence it is recommended to consider punctuation marks on a par with words.Comment: 113 pages, 49 figure

Multifractal cross-correlations of bitcoin and ether trading characteristics in the post-COVID-19 time

Unlike price fluctuations, the temporal structure of cryptocurrency trading has seldom been a subject of systematic study. In order to fill this gap, we analyse detrended correlations of the price returns, the average number of trades in time unit, and the traded volume based on high-frequency data representing two major cryptocurrencies: bitcoin and ether. We apply the multifractal detrended cross-correlation analysis, which is considered the most reliable method for identifying nonlinear correlations in time series. We find that all the quantities considered in our study show an unambiguous multifractal structure from both the univariate (auto-correlation) and bivariate (cross-correlation) perspectives. We looked at the bitcoin--ether cross-correlations in simultaneously recorded signals, as well as in time-lagged signals, in which a time series for one of the cryptocurrencies is shifted with respect to the other. Such a shift suppresses the cross-correlations partially for short time scales, but does not remove them completely. We did not observe any qualitative asymmetry in the results for the two choices of a leading asset. The cross-correlations for the simultaneous and lagged time series became the same in magnitude for the sufficiently long scales

Multifractality in time series is due to temporal correlations

Based on the rigorous mathematical arguments formulated within the Multifractal Detrended Fluctuation Analysis (MFDFA) approach it is shown that in the uncorrelated time series the effects resembling multifractality asymptotically disappear when the length of time series increases. The related effects are also illustrated by numerical simulations. This documents that the genuine multifractality in time series may only result from the long-range temporal correlations and the fatter distribution tails of fluctuations may broaden the width of singularity spectrum only when such correlations are present. The frequently asked question of what makes multifractality in time series - temporal correlations or broad distribution tails - is thus ill posed

Decomposing cryptocurrency dynamics into recurring and noisy components

This paper investigates the temporal patterns of activity in the cryptocurrency market with a focus on bitcoin, ether, dogecoin, and winklink from January 2020 to December 2022. Market activity measures - logarithmic returns, volume, and transaction number, sampled every 10 seconds, were divided into intraday and intraweek periods and then further decomposed into recurring and noise components via correlation matrix formalism. The key findings include the distinctive market behavior from traditional stock markets due to the nonexistence of trade opening and closing. This was manifest in three enhanced-activity phases aligning with Asian, European, and US trading sessions. An intriguing pattern of activity surge in 15-minute intervals, particularly at full hours, was also noticed, implying the potential role of algorithmic trading. Most notably, recurring bursts of activity in bitcoin and ether were identified to coincide with the release times of significant US macroeconomic reports such as Nonfarm payrolls, Consumer Price Index data, and Federal Reserve statements. The most correlated daily patterns of activity occurred in 2022, possibly reflecting the documented correlations with US stock indices in the same period. Factors that are external to the inner market dynamics are found to be responsible for the repeatable components of the market dynamics, while the internal factors appear to be substantially random, which manifests itself in a good agreement between the empirical eigenvalue distributions in their bulk and the random matrix theory predictions expressed by the Marchenko-Pastur distribution. The findings reported support the growing integration of cryptocurrencies into the global financial markets

Characteristics of price related fluctuations in Non-Fungible Token (NFT) market

A non-fungible token (NFT) market is a new trading invention based on the blockchain technology which parallels the cryptocurrency market. In the present work we study capitalization, floor price, the number of transactions, the inter-transaction times, and the transaction volume value of a few selected popular token collections. The results show that the fluctuations of all these quantities are characterized by heavy-tailed probability distribution functions, in most cases well described by the stretched exponentials, with a trace of power-law scaling at times, long-range memory, and in several cases even the fractal organization of fluctuations, mostly restricted to the larger fluctuations, however. We conclude that the NFT market - even though young and governed by a somewhat different mechanisms of trading - shares several statistical properties with the regular financial markets. However, some differences are visible in the specific quantitative indicators