Marc Kralingen, Van Email & Phone Number

Leiden, Zh, Nl

The Hague, South Holland, Netherlands

Den Haag

Amsterdam Area, Netherlands

The prices of stocks on the stock market are determined during the trading process. For example, good news about a stock causes its price to increase, because the investors start to buy the stock. However, the primary objective of investors is not the discovery of the correct price, but profits and protection of their risk position. In other words, trading behaviour does not depend only on changes of the fundamental value of the stock. Therefore, trading can cause price fluctuations that are not related to changes in the actual stock value. The best example is the financial crisis in 2008, where many investors attempted to liquidate assets at the same moment, causing a worldwide market crash. As a physicist, I see the stock market as a large interacting system, where concepts like price bubbles and market tension can be translated into specific measures like phase transitions and tipping points. During my internship at DNB, I had access to data on the exact trading behaviour of Dutch investors. Following recent insights from the field of complex network theory, I developed a method, that enabled to translate these large amounts of data to a meaningful measure of group behaviour by investors. I coined the term ‘market clustering’, which is a measure of reduced diversity of the investors’ pool per stock. I found a causal relation between market clustering and price fluctuations. This is the first empirical research that uses detailed trading data to study the impact of trading behaviour on price dynamics.

Boston, Ma

During this internship I worked on my research ideas, together with the researchers in the group of professor Stanley. This was in the early stage of the project that is described under 'Internship Dutch Central Bank'. Professor Stanley is the founding father and a leading expert in Econophysics, the interdisciplinary field that applies insights from Physics and Mathematics to Economics problems. I met prof. Stanley when he was visiting Leiden. I visited his research group in the summer of 2014. I learned a lot from the collaboration with the researchers at Boston University. Furthermore, the experience of living in Boston was one of the most enriching experiences of my life.

Master'S Degree, Econometrics And Quantitative Economics

Internship Robeco: ‘Corporate bonds in different regions and sectors: How to create a profitable portfolio?’ (4 persons, Jan. 2015 – Mar..

Master Of Science (Msc), Theoretical And Mathematical Physics, 8

Relevant courses: i.a. Statistical Physics, Theory of General Relativity and Effective Field Theory. This master contained a full year.

Premaster, Econometrics And Quantitative Economics

This pre-master was a summary of the part of the bachelor Econometrics that is not covered in the bachelor Physics. I learned especially.

Bachelor Of Applied Science (Basc), Theoretical And Mathematical Physics

Minor: Science Based Business Courses: i.a. Linear Algebra, Calculus, Programming Methods Extra: Propedeuse (first year) Astronomy Extra.