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Persistence Probabilities of the German DAX and Shanghai Index

F. Ren, B. Zheng, H. Lin, L. Y. Wen, S. Trimper

nlin.AOarXiv:nlin/0511048

Abstract

We present a relatively detailed analysis of the persistence probability distributions in financial dynamics. Compared with the auto-correlation function, the persistence probability distributions describe dynamic correlations non-local in time. Universal and non-universal behaviors of the German DAX and Shanghai Index are analyzed, and numerical simulations of some microscopic models are also performed. Around the fixed point z0=0, the interacting herding model produces the scaling behavior of the real markets.

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