A Visibility Graph Approach to CNY Exchange Rate Networks and Characteristic Analysis

We find that exchange rate networks are significantly similar from the perspective of topological structure, though with relatively great differences in fluctuation characteristics from perspective of exchange rate time series. First, we transform central parity rate time series of US dollar, Euro,...

Full description

Saved in:
Bibliographic Details
Main Authors: Can-Zhong Yao, Ji-Nan Lin
Format: Article
Language:English
Published: Wiley 2017-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2017/5632374
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849307373561184256
author Can-Zhong Yao
Ji-Nan Lin
author_facet Can-Zhong Yao
Ji-Nan Lin
author_sort Can-Zhong Yao
collection DOAJ
description We find that exchange rate networks are significantly similar from the perspective of topological structure, though with relatively great differences in fluctuation characteristics from perspective of exchange rate time series. First, we transform central parity rate time series of US dollar, Euro, Yen, and Sterling against CNY into exchange rate networks with visibility graph algorithm and find consistent topological characteristics in four exchange rate networks, with their average path lengths 5 and average clustering coefficients 0.7. Further, we reveal that all four transformed exchange rate networks show hierarchical structure and small-world and scale-free properties, with their hierarchy indexes 0.5 and power exponents 1.5. Both of the US dollar network and Sterling network exhibit assortative mixing features, while the Euro network and Yen network exhibit disassortative mixing features. Finally, we research community structure of exchange rate networks and uncover the fact that the communities are actually composed by large amounts of continuous time point fractions and small amounts of discrete time point fractions. In this way, we can observe that the spread of time series values corresponding to nodes inside communities is significantly lower than the spread of those values corresponding to nodes of the whole networks.
format Article
id doaj-art-291bb4a775ec4f92ae47173bcd87fb4c
institution Kabale University
issn 1026-0226
1607-887X
language English
publishDate 2017-01-01
publisher Wiley
record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-291bb4a775ec4f92ae47173bcd87fb4c2025-08-20T03:54:47ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2017-01-01201710.1155/2017/56323745632374A Visibility Graph Approach to CNY Exchange Rate Networks and Characteristic AnalysisCan-Zhong Yao0Ji-Nan Lin1School of Economics and Commerce, South China University of Technology, Guangzhou 510006, ChinaDepartment of Economics, The Chinese University of Hong Kong, Shatin, Hong KongWe find that exchange rate networks are significantly similar from the perspective of topological structure, though with relatively great differences in fluctuation characteristics from perspective of exchange rate time series. First, we transform central parity rate time series of US dollar, Euro, Yen, and Sterling against CNY into exchange rate networks with visibility graph algorithm and find consistent topological characteristics in four exchange rate networks, with their average path lengths 5 and average clustering coefficients 0.7. Further, we reveal that all four transformed exchange rate networks show hierarchical structure and small-world and scale-free properties, with their hierarchy indexes 0.5 and power exponents 1.5. Both of the US dollar network and Sterling network exhibit assortative mixing features, while the Euro network and Yen network exhibit disassortative mixing features. Finally, we research community structure of exchange rate networks and uncover the fact that the communities are actually composed by large amounts of continuous time point fractions and small amounts of discrete time point fractions. In this way, we can observe that the spread of time series values corresponding to nodes inside communities is significantly lower than the spread of those values corresponding to nodes of the whole networks.http://dx.doi.org/10.1155/2017/5632374
spellingShingle Can-Zhong Yao
Ji-Nan Lin
A Visibility Graph Approach to CNY Exchange Rate Networks and Characteristic Analysis
Discrete Dynamics in Nature and Society
title A Visibility Graph Approach to CNY Exchange Rate Networks and Characteristic Analysis
title_full A Visibility Graph Approach to CNY Exchange Rate Networks and Characteristic Analysis
title_fullStr A Visibility Graph Approach to CNY Exchange Rate Networks and Characteristic Analysis
title_full_unstemmed A Visibility Graph Approach to CNY Exchange Rate Networks and Characteristic Analysis
title_short A Visibility Graph Approach to CNY Exchange Rate Networks and Characteristic Analysis
title_sort visibility graph approach to cny exchange rate networks and characteristic analysis
url http://dx.doi.org/10.1155/2017/5632374
work_keys_str_mv AT canzhongyao avisibilitygraphapproachtocnyexchangeratenetworksandcharacteristicanalysis
AT jinanlin avisibilitygraphapproachtocnyexchangeratenetworksandcharacteristicanalysis
AT canzhongyao visibilitygraphapproachtocnyexchangeratenetworksandcharacteristicanalysis
AT jinanlin visibilitygraphapproachtocnyexchangeratenetworksandcharacteristicanalysis