Financial Market - A Network Perspective

We construct a weighted financial network for a subset of NYSE traded stocks, in which the nodes correspond to stocks and edges to interactions between them. We identify clusters of stocks in the network, based on the Forbes business sector classification, and study their intensity and coherence. Our approach indicates to what extent the business sector classifications are visible in market prices, enabling us to gauge the extent of group-behaviour exhibited by stocks belonging to a given business sector.

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