The Risk Analysis of International Stock Market Based on Complex Network Approach

Since the breakout of 2008 global financial crisis, risk management has been a hot and crucial topic in research. In our paper, we construct international stock network of volatility risk and crash risk with the help of the empirical mode decomposition method and Granger causality test. We find that the most influential nations on different time scales are similar despite that the shortest-term components are disturbed. As the time scale increases, the pattern tends to be more clarified that the nations with mature stock market or developed economy, such as, USA, UK and Singapore are the most influential in risk contagion.