Evidence of chaos and nonlinear dynamics in the Peruvian financial market

TL;DR

This paper investigates chaotic and nonlinear dynamics in the Peruvian financial market by applying fractal set theory and Whitney immersion concepts to stock price data, revealing complex underlying behaviors.

Contribution

It introduces a method to analyze financial market chaos using fractal and dynamical systems theory, extending existing mathematical frameworks to market data.

Findings

Evidence of chaotic behavior in stock prices

Application of fractal set theory to financial data

Reproduction of market dynamics using nonlinear methods

Abstract

Physicists experimentalists use a large number of observations of a phenomenon, where are the unknown equations that describe it, in order to play the dynamics and obtain information on their future behavior. In this article we study the possibility of reproducing the dynamics of the phenomenon using only a measurement scale. The Whitney immersion theorem ideas are presented and generalization of Sauer for fractal sets to rebuild the asymptotic behaviour of the phenomena and to investigate, chaotic behavior evidence in the reproduced dynamics. The applications are made in the financial market which are only known stock prices.