Standardized local assortativity in networks and systemic risk in financial markets.

The study of assortativity allows us to understand the heterogeneity of networks and the implication of network resilience. While a global measure has been predominantly used to characterize this network feature, there has been little research to suggest a local coefficient to account for the presence of local (dis)assortative patterns in diversely mixed networks. We build on existing literature and extend the concept of assortativity with the proposal of a standardized scale-independent local coefficient to observe the assortative characteristics of each entity in networks that would otherwise be smoothed out with a global measure.

Assessing systemic risk in financial markets using dynamic topic networks.

Systemic risk in financial markets refers to the breakdown of a financial system due to global events, catastrophes, or extreme incidents, leading to huge financial instability and losses. This study proposes a dynamic topic network (DTN) approach that combines topic modelling and network analysis to assess systemic risk in financial markets. We make use of Latent Dirichlet Allocation (LDA) to semantically analyse news articles, and the extracted topics then serve as input to construct topic similarity networks over time.