Hierarchical Structure of the German Stock Market

Enormous quantity of information affects stock returns every day producing their almost random behavior. Nonetheless some information can be recovered by using symbolic methods and constructing Minimal Spanning Trees (MST) and Hierarchical Trees (HT). The introduced method is applied to the main German Companies which appear in the DAX30 index. A structural topology is constructed for this stock market in normal and extreme situations. In addition we detect that German companies tend to integrate in the market