Network Topology of Foreign Exchange Rate
In this paper we use a network topology approach to examine the interrelationship of 55 world currencies which is based on correlation analysis. With this point of view, those relationships can be measured by a correlation structure among currencies. To analyse that network, we filter the important...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Canadian Center of Science and Education
2012
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/6835/ http://umpir.ump.edu.my/id/eprint/6835/ http://umpir.ump.edu.my/id/eprint/6835/ http://umpir.ump.edu.my/id/eprint/6835/1/Network_Topology_of_Foreign_Exchange_Rate.pdf |
| Summary: | In this paper we use a network topology approach to examine the interrelationship of 55 world currencies which is based on correlation analysis. With this point of view, those relationships can be measured by a correlation structure among currencies. To analyse that network, we filter the important information contained therein by using minimum spanning tree, and we interpret it by using a centrality measures. This topology will gives us a useful guide to understand their behaviour and to determine the dominance currency in the network as part of a complex network. The results show that HKD-Hong Kong Dollar is the most dominance currencies, followed by
in order of importance; SGD-Singapore Dollar, USD-US Dollar, SAR-Saudi Riyal, and TWD-New Taiwan Dollar. |
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