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A multifaceted graph-wise network analysis of sector-based financial instruments’ price-based discrepancies with diverse statistical interdependencies

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  • Choi, Insu
  • Kim, Woo Chang

Abstract

We explore discrepancies in financial networks, focusing on sector-based exchange-traded funds, through an in-depth analysis using statistical measures to validate interdependencies. By adopting methodologies such as the Minimum Spanning Tree, Average Linkage Minimum Spanning Tree, p-value-based networks, and Planar Maximally Filtered Graph, we investigate price-based discrepancies to uncover underlying network structures within financial data. Our key contribution is showing how employing a variety of measures and network analyses can offer diverse insights into financial markets. This approach enhances our understanding of market dynamics and provides a comprehensive framework for examining the intricate web of relationships that underpin the financial market.

Suggested Citation

  • Choi, Insu & Kim, Woo Chang, 2025. "A multifaceted graph-wise network analysis of sector-based financial instruments’ price-based discrepancies with diverse statistical interdependencies," The North American Journal of Economics and Finance, Elsevier, vol. 75(PB).
    • Handle: RePEc:eee:ecofin:v:75:y:2025:i:pb:s1062940824002419
    DOI: 10.1016/j.najef.2024.102316
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