Past-future mutual information estimation in sparse information conditions

Yuval Shalev, Irad Ben-Gal

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

We introduce the CT-PFMI, a context tree based algorithm that estimates the past-future mutual information (PFMI) between different time series. By applying a pruning phase of the context tree algorithm, uninformative past sequences are removed from PFMI estimation along with their false contributions. In situations where most of the past data is uninformative, the CT-PFMI shows better estimates to the true PFMI than other benchmark methods as demonstrated in a simulated study. By implementing CT-PFMI on real stock prices data we also demonstrate how the algorithm provides useful insights when analyzing the interactions between financial time series.

Original languageEnglish
Title of host publicationIC3K 2019 - Proceedings of the 11th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management
EditorsAna Fred, Joaquim Filipe
PublisherSciTePress
Pages65-71
Number of pages7
ISBN (Electronic)9789897583827
DOIs
StatePublished - 2019
Event11th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management, IC3K 2019 - Vienna, Austria
Duration: 17 Sep 201919 Sep 2019

Publication series

NameIC3K 2019 - Proceedings of the 11th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management
Volume1

Conference

Conference11th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management, IC3K 2019
Country/TerritoryAustria
CityVienna
Period17/09/1919/09/19

Keywords

  • Context Tree
  • Past-future Mutual Information
  • Time Series Analysis
  • Transfer Entropy

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