The Relation between Degree and Strength in the Complex Network Derived from an Individual Stock

Abstract EN

A method based on coarse-graining to construct a directed weighted complex network which models the transformation of the trading data of an individual stock is introduced.

The degree (strength) distribution of derived network follows a power-law.

A moderated regression equation with interaction effects of average return and out-degree (in-degree) on out-strength (in-strength) is established.

Moreover, we found that the differences of nodes affect the network’s structure and average return level impacts nodes’ eigenvector centrality and pagerank, significantly.