The analysis of business and market cycles on the ExMetrix platform May 4, 2017 – Posted in: posty

ExMetrix has added to the analytical offer new and unique functions that make possible finding links within business cycles that occur throughout capital markets and market processes.

Markets and market processes often work within business cycles. These cycles are characterised by different duration and performance. Throughout certain markets, we can observe really powerful cyclical phenomena. However, over other markets, these phenomena are less detectable. Duration of cycles ranges from a few days to several months or years. Linear correlation measures (e.g. correlation coefficient) are not always enough to identify similarities in terms of spectral analysis especially for periods of shorten duration.

In these cases, the spectral analysis is the most effective method.

ExMetrix makes possible finding similarities within cycles – that is with the use of spectral components. The User can define cycles which he is interested in – long or short cycles which apply to short-term market fluctuations.

Through analysis of defined market or economic process, the User receives information about what data, levels and time shifts (time shift analysis) are related to this process.

This method not only provides information regarding current relations among markets but also about mutual time shifts among them what makes possible applying selected variables to building models involving phenomena of different durations (different lengths of cycles).

Different extracts of the signal frequency spectrum for the WIG20 index.

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