December 16, 2008 / SFI External Professor Daniel Rockmore and coresearchers study the complex systems of the financial markets. Rockmore and colleagues created the “partition decoupling method” (PDM) which combines the partition scrubbing method and the hierarchical spectral clustering method. The PDM would be used for decomposing the correlation networks of the markets. The end result would reveal interdependencies in the network components. This information would be useful in risk management and portfolio construction.

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