How should I represent a financial market as a graph?

In summary, the author suggests using programming code to generate a graph that represents the financial market. Many different software options are available, and the author suggests trying out different ones to see which one is best suited for their needs.
  • #1
valesdn
42
1
Hi guys.
I am reading several papers about financial market and authors show the possibility to represent this market as a graph in which nodes correspond to traders and edges represent trading relationships.
Which programming software could be a powerful tool to write a such code?
I am curious about that (unfortunately I have not experience and I am not familiar with codes.
I hope you can suggest me a software, an algorithm and/or whatever is helpful to understand and trying to replicate some of their works ( I would like to say "just for fun" though I don't guess I could call this a "fun" work...).

Many thanks.
 
Technology news on Phys.org
  • #2
Is this some sort of school project?

I would suggest something like MATLAB or FreeMat could draw 2D/3D charts and do any computations needed.

Its also possible that a spreadsheet program could do it too. I imagine you'd need to use a 3D type of chart.

Or if you had some familiarity with javascript then D3 might be able to generate such a chart:

https://github.com/d3/d3/wiki/Gallery

It sems that you'll need to collect data on market activity and see how you could sketch one by hand so that you understand what you want to plot and then look into one of the software packages above.
 
  • #3
valesdn said:
(unfortunately I have not experience and I am not familiar with codes.

You are wildly unrealistic to hope to do a project like that if you don't have the background. A 4 year degree in computer science, is a guess of what you need to begin.
 
  • Like
Likes jedishrfu
  • #4
Thank for your reply.
I have used programming code like C, Mathematica and R in the last years, but I am not familiar with these ones. Not more, anyway. I will try to understand how I should work with these programmes in order to replicate a financial model as a graph (or small network), with nodes and edges. It is not easy, of course, but I will try to do that ;)
 
  • #5
graphviz is a free utility that you can use for such diagrams. It is programmed using a language called "dot". See http://www.graphviz.org/Documentation/dotguide.pdf
It doesn't require prior programming background. Several well-known documentation utilities, like doxygen, use it to make very complicated diagrams. I have used it, stand alone, to make simple diagrams. Simple diagrams are easy.
If you are trying to automate generating the diagrams, I think that the syntax of dot would be fairly simple as long as you are satisfied with letting graphviz do most of the work of positioning the diagram elements.

If you have money and are looking for a combination of graphics and calculations, MATLAB Simulink is a good option.
 
Last edited:
  • #6
I suggest looking at the data analytics and visualization software called Tableau, which doesn't require any coding.

Edit: There's an open source alternative made by Eclipse called BIRT, but I haven't used it.
 
Last edited:
  • #7
Thank you for all your great advices!
 

What is a financial market graph?

A financial market graph is a visual representation of the price movements of various financial instruments, such as stocks, bonds, and commodities. It typically plots the price of these instruments over a period of time, allowing investors to track their performance and make informed decisions.

What are the key elements of a financial market graph?

The key elements of a financial market graph include the x-axis, which represents time, and the y-axis, which represents the price of the financial instrument. It also includes data points, which are plotted on the graph to show the price at specific points in time, and a trend line, which connects the data points and shows the overall direction of the price movement.

How should I choose the right type of graph for representing a financial market?

The type of graph you choose will depend on the specific data you want to represent. Some common types of graphs used in financial markets include line graphs, bar graphs, and candlestick charts. Line graphs are useful for showing trends over time, bar graphs can be used to compare different instruments, and candlestick charts provide a more detailed view of price movements.

What are some common mistakes to avoid when creating a financial market graph?

One common mistake to avoid is using a graph that is too cluttered or busy, making it difficult to interpret the data. It's important to keep the graph simple and easy to read. Another mistake is not labeling the axes or providing a clear title for the graph, which can make it difficult for viewers to understand the data being presented.

How can I use a financial market graph to make informed investment decisions?

A financial market graph can provide valuable insights into the performance of various financial instruments over time. By carefully analyzing the data and identifying patterns and trends, investors can make informed decisions about when to buy or sell these instruments. Additionally, graphs can help investors track their portfolio's performance and make adjustments as needed.

Similar threads

  • Programming and Computer Science
Replies
2
Views
1K
  • Programming and Computer Science
Replies
1
Views
1K
  • Programming and Computer Science
Replies
3
Views
879
  • MATLAB, Maple, Mathematica, LaTeX
Replies
7
Views
1K
  • Introductory Physics Homework Help
Replies
1
Views
432
  • Programming and Computer Science
Replies
15
Views
1K
  • Sticky
  • Programming and Computer Science
Replies
13
Views
4K
  • Programming and Computer Science
Replies
4
Views
3K
  • Engineering and Comp Sci Homework Help
Replies
1
Views
2K
Back
Top