Dynamics of climate and financial networks

• Applicant: Dr. Josef Ludescher
• Subject Area: Statistical Physics, Nonlinear Dynamics, Complex Systems, Soft and Fluid Matter, Biological Physics
• Term: from 2014 to 2015
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 263179908

The goal of this research project is to gain a better understanding of the structure and dynamics of climate and financial networks. In particular, the possibility of a network based prediction of special events like El Niños or strong retreats of prices will be investigated. In the climate networks regarded here the nodes correspond to geographic locations, where time series for atmospheric quantities like temperature, pressure or wind strength are available. The time dependent strength of a link between two nodes will be obtained from the signal-to-noise ratio of the cross-correlations between the corresponding time series. In financial networks the nodes are the return time series of assets like stocks, bonds or commodities and the dynamic link strength between two nodes is determined from the partial correlation between the two nodes. For different variations of the two kinds of networks it will be investigated if precursors for El Niños or strong price retreats can be derived from dynamical network quantities like the average link strength.

• DFG Programme: Research Fellowships
• International Connection: USA
• Host: Professor Dr. Eugene Stanley