International Financial Markets Through 150 Years: Evaluating Stylized Facts

ArXiv ID: 2504.08611 “View on arXiv”

Authors: Unknown

Abstract

In the theory of financial markets, a stylized fact is a qualitative summary of a pattern in financial market data that is observed across multiple assets, asset classes and time horizons. In this article, we test a set of eleven stylized facts for financial market data. Our main contribution is to consider a broad range of geographical regions across Asia, continental Europe, and the US over a time period of 150 years, as well as two of the most traded cryptocurrencies, thus providing insights into the robustness and generalizability of commonly known stylized facts.

Keywords: stylized facts, financial market data, geographical regions, cryptocurrencies, time horizons, General (Cross-asset)

Complexity vs Empirical Score

• Math Complexity: 4.5/10
• Empirical Rigor: 9.0/10
• Quadrant: Street Traders
• Why: The paper involves moderate mathematical modeling of volatility and statistical testing, but its core focus is on empirical analysis using extensive historical data (150 years) across multiple asset classes and regions, with reproducible code and datasets, making it highly backtest-ready.

  flowchart TD
    A["Research Goal<br>Test 11 Stylized Facts"] --> B["Data Collection<br>150 Years: Asia, Europe, US, Crypto"]
    B --> C["Methodology<br>Cross-Asset & Time Horizon Analysis"]
    C --> D["Computational Process<br>Empirical Testing & Validation"]
    D --> E{"Key Outcomes"}
    E --> F["Stylized Facts Robust<br>Across Geographies"]
    E --> G["Time Horizon<br>Dependent Patterns"]
    E --> H["Crypto Markets<br>Exhibit Similar Traits"]