Plenary Lecture

Linear Relation of Signals with Shifting: An Application in Finance

Professor Edi Cahyono
Department of Mathematics FMIPA
University of Halu Oleo

Abstract: We consider two signals defined in finite and closed interval of time to define a linear relation of the two with shifting. In general when one signal is expressed in a linear form of the other with shifting, they give an error. In this talk, we investigate the relative error and the condition where one signal can be approximated by the other in a linear form. We discuss geometric interpretation of linear expression. Moreover, we focus on the possibility of the applications in economics and finance. Especially, we apply to obtain the relation of two stock, currency and index dynamics. The linear relation with shifting of two signals can be applied to predict the stock, currency and index dynamics, based on the other. We note that predicting such dynamics is very difficult, especially for high frequency data.

Brief Biography of the Speaker: He was awarded a Doctor in Applied Analysis and Mathematical Physics University of Twente, the Netherlands in 2002. Upon completion of his PhD degree, he was appointed as a Lecturer in the Department of Mathematics, Universitas Halu Oleo, Kendari Indonesia. In 2010 he was promoted to Professor of Industrial and Applied Mathematics. His main research areas are focused on Partial Differential Equations and applications. For the case of diffusion equation, he has applied it for modeling of wood drying in an industry. Currently, he has been working on the relation of fundamental solution type with temporal probability density function of stock, currency and index dynamics.