Constructing topological models by symmetrization: A projected entangled pair states study

Symmetrization of topologically ordered wave functions is a powerful method for constructing new topological models. Here we study wave functions obtained by symmetrizing quantum double models of a group G in the projected entangled pair states (PEPS) formalism. We show that symmetrization naturally gives rise to a larger symmetry group G˜ which is always non-Abelian. We prove that by symmetrizing on sufficiently large blocks, one can always construct wave functions in the same phase as the double model of G˜. In order to understand the effect of symmetrization on smaller patches, we carry out numerical studies for the toric code model, where we find strong evidence that symmetrizing on individual spins gives rise to a critical model which is at the phase transitions of two inequivalent toric codes, obtained by anyon condensation from the double model of G˜.

Volatility transmission between stock and exchange-rate markets: A connectedness analysis

This paper empirically investigates volatility transmission among stock and foreign exchange markets in seven major world economies during the period July 1988 to January 2015. To this end, we first perform a static and dynamic analysis to measure the total volatility connectedness in the entire period (the system-wide approach) using a framework recently proposed by Diebold and Yilmaz (2014). Second, we make use of a dynamic analysis to evaluate the net directional connectedness for each market. To gain further insights, we examine the time-varying behaviour of net pair-wise directional connectedness during the financial turmoil periods experienced in the sample period Our results suggest that slightly more than half of the total variance of the forecast errors is explained by shocks across markets rather than by idiosyncratic shocks. Furthermore, we find that volatility connectedness varies over time, with a surge during periods of increasing economic and financial instability.