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Emerging properties of financial time series in the "game of Life"

Physical Review E - Statistical, Nonlinear, and Soft Matter Physics, ISSN: 1539-3755, Vol: 84, Issue: 6, Page: 066104
2011
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We explore the spatial complexity of Conway's "Game of Life," a prototypical cellular automaton by means of a geometrical procedure generating a two-dimensional random walk from a bidimensional lattice with periodical boundaries. The one-dimensional projection of this process is analyzed and it turns out that some of its statistical properties resemble the so-called stylized facts observed in financial time series. The scope and meaning of this result are discussed from the viewpoint of complex systems. In particular, we stress how the supposed peculiarities of financial time series are, often, overrated in their importance. © 2011 American Physical Society.

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