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The data mining technique of time series clustering is well established in many fields. However, as an unsupervised learning method, it requires making choices that are nontrivially influenced by the nature of the data involved. The aim of…

Econometrics · Economics 2018-07-19 Iwo Augustyński , Paweł Laskoś-Grabowski

Three robust methods for clustering multivariate time series from the point of view of generating processes are proposed. The procedures are robust versions of a fuzzy C-means model based on: (i) estimates of the quantile cross-spectral…

The problem of rapid and automated detection of distinct market regimes is a topic of great interest to financial mathematicians and practitioners alike. In this paper, we outline an unsupervised learning algorithm for clustering financial…

Computational Finance · Quantitative Finance 2021-10-25 Blanka Horvath , Zacharia Issa , Aitor Muguruza

A novel methodology is proposed for clustering multivariate time series data using energy distance defined in Sz\'ekely and Rizzo (2013). Specifically, a dissimilarity matrix is formed using the energy distance statistic to measure…

Methodology · Statistics 2024-03-13 Richard A. Davis , Leon Fernandes , Konstantinos Fokianos

We propose a three-stage framework for forecasting high-dimensional time-series data. Our method first estimates parameters for each univariate time series. Next, we use these parameters to cluster the time series. These clusters can be…

Machine Learning · Computer Science 2021-10-28 Reese Pathak , Rajat Sen , Nikhil Rao , N. Benjamin Erichson , Michael I. Jordan , Inderjit S. Dhillon

Starting from a dataset with input/output time series generated by multiple deterministic linear dynamical systems, this paper tackles the problem of automatically clustering these time series. We propose an extension to the so-called…

Systems and Control · Computer Science 2018-03-09 Oliver Lauwers , Bart De Moor

We apply a method to filter relevant information from the correlation coefficient matrix by extracting a network of relevant interactions. This method succeeds to generate networks with the same hierarchical structure of the Minimum…

Physics and Society · Physics 2007-05-23 T. Aste , T. Di Matteo , M. Tumminello , R. N. Mantegna

Time series, as one of the most fundamental representations of sequential data, has been extensively studied across diverse disciplines, including computer science, biology, geology, astronomy, and environmental sciences. The advent of…

Machine Learning · Computer Science 2024-12-31 John Paparrizos , Fan Yang , Haojun Li

This note outlines an approach to stress testing of covariance of financial time series, in the context of financial risk management. It discusses how the geodesic distance between covariance matrices implies a notion of plausibility of…

Risk Management · Quantitative Finance 2026-03-24 Piotr Chmielowski

A novel elastic time distance for sparse multivariate functional data is proposed and used to develop a robust distance-based two-layer partition clustering method. With this proposed distance, the new approach not only can detect correct…

Methodology · Statistics 2023-03-21 Zhuo Qu , Wenlin Dai , Marc G. Genton

Economic policy and research rely on the correct evaluation of the billions of high-frequency data points that we collect every day. Consistent clustering algorithms, like DBSCAN, allow us to make sense of the data in a useful way. However,…

Statistics Theory · Mathematics 2024-03-25 Nicholas Waltz

Time-series clustering serves as a powerful data mining technique for time-series data in the absence of prior knowledge about clusters. A large amount of time-series data with large size has been acquired and used in various research…

Signal Processing · Electrical Eng. & Systems 2024-05-21 Tomoki Inoue , Koyo Kubota , Tsubasa Ikami , Yasuhiro Egami , Hiroki Nagai , Takahiro Kashikawa , Koichi Kimura , Yu Matsuda

Researchers have used from 30 days to several years of daily returns as source data for clustering financial time series based on their correlations. This paper sets up a statistical framework to study the validity of such practices. We…

Machine Learning · Statistics 2016-04-18 Gautier Marti , Sébastien Andler , Frank Nielsen , Philippe Donnat

Mining Time Series data has a tremendous growth of interest in today's world. To provide an indication various implementations are studied and summarized to identify the different problems in existing applications. Clustering time series is…

Information Retrieval · Computer Science 2010-05-25 V. Kavitha , M. Punithavalli

We study empirical covariance matrices in finance. Due to the limited amount of available input information, these objects incorporate a huge amount of noise, so their naive use in optimization procedures, such as portfolio selection, may…

Physics and Society · Physics 2008-12-02 Gabor Papp , Szilard Pafka , Maciej A. Nowak , Imre Kondor

A novel procedure to perform fuzzy clustering of multivariate time series generated from different dependence models is proposed. Different amounts of dissimilarity between the generating models or changes on the dynamic behaviours over…

Methodology · Statistics 2021-09-09 Ángel López-Oriona , José A. Vilar , Pierpaolo-D'Urso

Recent studies inspired by results from random matrix theory [1,2,3] found that covariance matrices determined from empirical financial time series appear to contain such a high amount of noise that their structure can essentially be…

Statistical Mechanics · Physics 2009-11-07 Szilard Pafka , Imre Kondor

Time series clustering is the process of grouping time series with respect to their similarity or characteristics. Previous approaches usually combine a specific distance measure for time series and a standard clustering method. However,…

The increasing availability of granular and big data on various objects of interest has made it necessary to develop methods for condensing this information into a representative and intelligible map. Financial regulation is a field that…

Machine Learning · Statistics 2025-07-08 Lorenz Riess , Mathias Beiglböck , Johannes Temme , Andreas Wolf , Julio Backhoff

This paper uses topological data analysis (TDA) tools and introduces a data-driven clustering-based stock selection strategy tailored for sparse portfolio construction. Our asset selection strategy exploits the topological features of stock…

Portfolio Management · Quantitative Finance 2024-12-16 Anubha Goel , Damir Filipović , Puneet Pasricha