GLOBAL STOCK MARKET ANALYSIS IN 2006-2009 WITH MINIMUM SPANNING TREE METHOD

• Main Author: PRISCILLA LAMTARIDA (NIM : 10213068), CLAUDIA
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26311
• Institution: Institut Teknologi Bandung

Complex system is a scientific field that studies how to identify the behavior of a whole system by investigating some parts of the system. Econophysics is one of complex system’s most applied subfields that use physical theories and physical method to analyze economical system such as stocks market and currency market. Stock market as a part of capital market is one of the biggest financial market in which investors invest their money on. Since the stock market is full of risk, the invertors need to carefully analyze the risk of the stock market that he’s aiming to get the return as much as possible on a minimal risk. This report will contain the application of network theory to analyze global stock market and to identify the behavior of the market on 2006-2009, specially with Minimum Spanning Tree method. With Minimum Spanning Tree, market’s behavior will be generally conducted and might be a consideration in investing field including another parameters, such as centrality, correlation coefficient, on the global financial crisis 2008.