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Multifractal analysis is one of the important approaches that enables us to measure the complexity of various data via the scaling properties. We compare the most common techniques used for multifractal exponents estimation from both…

Statistical Finance · Quantitative Finance 2016-10-25 Petr Jizba , Jan Korbel

In this work, we investigate the statistical computation of the Boltzmann entropy of statistical samples. For this purpose, we use both histogram and kernel function to estimate the probability density function of statistical samples. We…

Methodology · Statistics 2015-06-23 Ning Sui , Min Li , Ping He

We show that the R\'enyi entropies of single particle, extended wave functions for disordered systems contain information about the multifractal spectrum. It is shown for moments of the R\'enyi entropy, $S_{n}$, where $|n|<1$, it is…

Mesoscale and Nanoscale Physics · Physics 2013-02-04 Xiao Chen , Benjamin Hsu , Taylor L. Hughes , Eduardo Fradkin

Efficient and accurate estimation of multivariate empirical probability distributions is fundamental to the calculation of information-theoretic measures such as mutual information and transfer entropy. Common techniques include variations…

Information Theory · Computer Science 2023-03-23 Z. Keskin

Histograms are convenient non-parametric density estimators, which continue to be used ubiquitously. Summary quantities estimated from histogram-based probability density models depend on the choice of the number of bins. We introduce a…

Data Analysis, Statistics and Probability · Physics 2013-09-17 Kevin H. Knuth

To quantify the complexity of a system, entropy-based methods have received considerable critical attentions in real-world data analysis. Among numerous entropy algorithms, amplitude-based formulas, represented by Sample Entropy, suffer…

Signal Processing · Electrical Eng. & Systems 2022-01-12 Hongjian Xiao , Danilo P. Mandic

In this paper the diffusion entropy technique is applied to investigate the scaling behavior of financial markets. The scaling behaviors of four representative stock markets, Dow Jones Industrial Average, Standard&Poor 500, Heng Seng Index,…

Physics and Society · Physics 2007-05-23 Shi-Min Cai , Pei-Ling Zhou , Hui-Jie Yang , Chun-Xia Yang , Bing-Hong Wang , Tao Zhou

We develop a simple Quantile Spacing (QS) method for accurate probabilistic estimation of one-dimensional entropy from equiprobable random samples, and compare it with the popular Bin-Counting (BC) method. In contrast to BC, which uses…

In a recent paper, the authors proposed a general methodology for probabilistic learning on manifolds. The method was used to generate numerical samples that are statistically consistent with an existing dataset construed as a realization…

Probability · Mathematics 2018-03-30 C. Soizea , R. Ghanem , C. Safta , X. Huan , Z. P. Vane , J. Oefelein , G. Lacaz , H. N. Najm , Q. Tang , X. Chen

The optimal instant of observation of astrophysical phenomena for objects that vary on human time-sales is an important problem, as it bears on the cost-effective use of usually scarce observational facilities. In this paper we address this…

Solar and Stellar Astrophysics · Physics 2023-02-15 Miguel Videla , Rene A. Mendez , Jorge F. Silva , Marcos E. Orchard

Modern empirical work in Regression Discontinuity (RD) designs often employs local polynomial estimation and inference with a mean square error (MSE) optimal bandwidth choice. This bandwidth yields an MSE-optimal RD treatment effect…

Econometrics · Economics 2020-07-21 Sebastian Calonico , Matias D. Cattaneo , Max H. Farrell

The R\'enyi function plays an important role in the analysis of multifractal random fields. For random fields on the sphere, there are three models in the literature where the R\'enyi function is known explicitly. The theoretical part of…

Probability · Mathematics 2020-11-11 Nikolai Leonenko , Ravindi Nanayakkara , Andriy Olenko

We present a novel method to estimate the multifractal spectrum of point distributions. The method incorporates two motivated criteria (barycentric pivot point selection and non-overlapping coverage) in order to reduce edge effects, improve…

Statistical Mechanics · Physics 2015-06-16 Yavor Kamer , Guy Ouillon , Didier Sornette

We consider fitting a bivariate spline regression model to data using a weighted least-squares cost function, with weights that sum to one to form a discrete probability distribution. By applying the principle of maximum entropy, the weight…

Methodology · Statistics 2025-08-05 Pierluigi Amodio , Luigi Brugnano , Felice Iavernaro

Despite half a century of research, there is still no general agreement about the optimal approach to build a robust multi-period portfolio. We address this question by proposing the detrended cluster entropy approach to estimate the…

Portfolio Management · Quantitative Finance 2021-07-06 P. Murialdo , L. Ponta , A. Carbone

We consider the weighted least squares spline approximation of a noisy dataset. By interpreting the weights as a probability distribution, we maximize the associated entropy subject to the constraint that the mean squared error is…

Numerical Analysis · Mathematics 2024-01-19 Luigi Brugnano , Domenico Giordano , Felice Iavernaro , Giorgia Rubino

Many financial variables are found to exhibit multifractal nature, which is usually attributed to the influence of temporal correlations and fat-tailedness in the probability distribution (PDF). Based on the partition function approach of…

Statistical Finance · Quantitative Finance 2012-01-13 Wei-Xing Zhou

This paper proposes a new method of bandwidth selection in kernel estimation of density and distribution functions motivated by the connection between maximisation of the entropy of probability integral transforms and maximum likelihood in…

Methodology · Statistics 2016-07-14 Vitaliy Oryshchenko

It is a common practice to evaluate probability density function or matter spatial density function from statistical samples. Kernel density estimation is a frequently used method, but to select an optimal bandwidth of kernel estimation,…

Methodology · Statistics 2021-04-27 Zhen-Wei Li , Ping He

The histogram is a key method for visualizing data and estimating the underlying probability distribution. Incorrect conclusions about the data result from over or under-binning. A new method based on the Shannon entropy of the histogram…

Data Analysis, Statistics and Probability · Physics 2022-10-07 Stephen Watts , Lisa Crow
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