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A model proposal for the chaotic structure of Istanbul stock exchange

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  • Iseri, Müge
  • Caglar, Hikmet
  • Caglar, Nazan

Abstract

Chaos theory is considered a novel way of understanding the behaviour of nonlinear dynamic systems. It is well known that the evaluation of chaotic systems is dependent on initial conditions since exponential growth error is a common characteristic. This present paper evaluates the effects of a nonlinear dynamic system in Istanbul Stock Exchange, based on time series. The reliability of predicting stock behaviour depends on this fact. In other words, the aim is to prove that if ISE daily index return shows chaotic behaviour.

Suggested Citation

  • Iseri, Müge & Caglar, Hikmet & Caglar, Nazan, 2008. "A model proposal for the chaotic structure of Istanbul stock exchange," Chaos, Solitons & Fractals, Elsevier, vol. 36(5), pages 1392-1398.
    • Handle: RePEc:eee:chsofr:v:36:y:2008:i:5:p:1392-1398
    DOI: 10.1016/j.chaos.2006.09.041
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    1. Opong, Kwaku K. & Mulholland, Gwyneth & Fox, Alan F. & Farahmand, Kambiz, 1999. "The behaviour of some UK equity indices: An application of Hurst and BDS tests1," Journal of Empirical Finance, Elsevier, vol. 6(3), pages 267-282, September.
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    5. Patrick K. K. Chu, 2003. "Study on the Non-Random and Chaotic Behavior of Chinese Equities Market," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 199-222.
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