DISTANCES AND NETWORKS: THE CASE OF MEXICO

Linda Margarita Medina Herrera and Ernesto Armando Pacheco Velázquez

Accounting & Taxation, 2012, vol. 4, issue 2, 39-48

Abstract: The influence of six different distances on the structure of minimum spanning trees is presented in this paper. Measures of complex networks are built based on the closing prices of stocks of the main companies traded on the Mexican Stock Market. We find that the City block and Chi distances not only match, but also determine more precisely the central vertex, the level of the tree and the clusters formed by the economic sector. The trees formed using Minkowski distances have similar structures and show a disadvantage when classifying the vertices. The construction and telecommunication sectors are most important within the trees, regardless of the distance used.

Keywords: Stock; market; network.; Econophysics.; Distances.; Minimum; spanning; tree. (search for similar items in EconPapers)
JEL-codes: C02 C22 C38 C45 C61 C8 D85 (search for similar items in EconPapers)
Date: 2012
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