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Mathematical Problems in Engineering
Volume 2015, Article ID 563145, 9 pages
Research Article

The Multiscale Conformation Evolution of the Financial Time Series

1School of Humanities and Economic Management, China University of Geosciences, Beijing 100083, China
2Key Laboratory of Carrying Capacity Assessment for Resource and Environment, Ministry of Land and Resources, Beijing 100083, China
3Lab of Resources and Environmental Management, China University of Geosciences, Beijing 100083, China

Received 29 May 2015; Accepted 22 July 2015

Academic Editor: Michael Small

Copyright © 2015 Shupei Huang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


Fluctuations of the nonlinear time series are driven by the traverses of multiscale conformations from one state to another. Aiming to characterize the evolution of multiscale conformations with changes in time and frequency domains, we present an algorithm that combines the wavelet transform and the complex network. Based on defining the multiscale conformation using a set of fluctuation states from different frequency components at each time point rather than the single observable value, we construct the conformational evolution complex network. To illustrate, using data of Shanghai’s composition index with daily frequency from 1991 to 2014 as an example, we find that a few major conformations are the main contributors of evolution progress, the whole conformational evolution network has a clustering effect, and there is a turning point when the size of the chain of multiscale conformations is 14. This work presents a refined perspective into underlying fluctuation features of financial markets.