Survivability and centrality measures for networks of financial market indices

TL;DR

This paper analyzes the evolution and survivability of network connections among 92 global financial market indices during 2007-2010, focusing on cluster dynamics, noise effects, and centrality measures amid the 2008 crisis.

Contribution

It introduces a comprehensive analysis of cluster formation, survivability, and noise impact on centrality in financial networks during a major economic crisis.

Findings

Clusters changed significantly during the crisis period

Survivability of connections varied over time

Noise influences centrality measure stability

Abstract

Using data from 92 indices of stock exchanges worldwide, I analize the cluster formation and evolution from 2007 to 2010, which includes the Subprime Mortgage Crisis of 2008, using asset graphs based on distance thresholds. I also study the survivability of connections and of clusters through time and the influence of noise in centrality measures applied to the networks of financial indices.