An Interdisciplinary Journal

* 2007, Vol.10, No.2, pp.127-135*

This contribution is dedicated to Professor Siegfried Groβssmann
on the occasion of his 75th birthday. Econophysics is a quickly
growing branch of statistical physics. An attempt is made to give
an introduction to the field by discussing a particular issue
which presently receives much attention: Precise knowledge of the
correlations between the prices of different stocks is needed to
construct an optimal portfolio. It turns out that the measured
correlations are often noise-dressed. Methods to estimate this
effect and to remove the noise are of considerable practical
interest.

*Key words: *
econophysics, financial correlations, noise reduction

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Last updated: *June 27, 2007*