Mathematical Problems in Engineering
Volume 2011 (2011), Article ID 253523, 13 pages
Research Article

Simulation and Statistical Analysis of Market Return Fluctuation by Zipf Method

Institute of Financial Mathematics and Financial Engineering, College of Science, Beijing Jiaotong University, Beijing 100044, China

Received 15 October 2010; Accepted 26 January 2011

Academic Editor: Carlo Cattani

Copyright © 2011 Yalong Guo and Jun Wang. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


We investigate the fluctuation behaviors of financial stock markets by Zipf analysis. In the present paper, the empirical research is made to describe ensembles and specifics of stock price returns for global stock indices, and the corresponding Zipf distributions are given. First we study the fluctuation behavior of global stock markets by ( 𝑚 , 𝑘 ) -Zipf method. Then we consider a dynamic stock price model, and we analyze the absolute frequencies and the relative frequencies for this financial model. Further, the Zipf distributions of returns for SSE Composite Index are studied for different time scales.