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We propose to examine the predictability and the complexity characteristics of the Standard&Poor500 dynamics behaviors in a coarse-grained way using the symbolic dynamics method and under the prism of the Information theory through the…

Statistical Finance · Quantitative Finance 2021-05-11 Geoffrey Ducournau

In this study, the cumulative effect of the empirical probability distribution of a random variable is identified as a factor that amplifies the occurrence of extreme events in datasets. To quantify this observation, a corresponding…

Data from social media are providing unprecedented opportunities to investigate the processes that rule the dynamics of collective social phenomena. Here, we consider an information theoretical approach to define and measure the temporal…

This paper considers the discrete-time version of Altafini's model for opinion dynamics in which the interaction among a group of agents is described by a time-varying signed digraph. Prompted by an idea from [1], exponential convergence of…

Optimization and Control · Mathematics 2015-12-23 Ji Liu , Xudong Chen , Tamer Basar , Mohamed Ali Belabbas

Graph based entropy, an index of the diversity of events in their distribution to parts of a co-occurrence graph, is proposed for detecting signs of structural changes in the data that are informative in explaining latent dynamics of…

Social and Information Networks · Computer Science 2019-05-03 Yukio Ohsawa

Human communication is commonly represented as a temporal social network, and evaluated in terms of its uniqueness. We propose a set of new entropy-based measures for human communication dynamics represented within the temporal social…

Social and Information Networks · Computer Science 2018-10-29 Marcin Kulisiewicz , Przemysław Kazienko , Bolesław K. Szymański , Radosław Michalski

We study an opinion formation model by the means of a co-evolving complex network where the vertices represent the individuals, characterised by their evolving opinions, and the edges represent the interactions among them. The network…

Physics and Society · Physics 2015-06-19 Enrique Burgos , Laura Hernandez , Horacio Ceva , Roberto P. J. Perazzo

The concept of entropy is not uniquely relevant to the statistical mechanics but among others it can play pivotal role in the analysis of a time series, particularly the stock market data. In this area sudden events are especially…

Statistical Finance · Quantitative Finance 2023-06-07 Ewa A. Drzazga-Szczȩśniak , Piotr Szczepanik , Adam Z. Kaczmarek , Dominik Szczȩśniak

Complex institutions are typically characterized by meso-scale structures which are fundamental for the successful coordination of multiple agents. Here we introduce a framework to study the temporal dynamics of the node-community…

Social and Information Networks · Computer Science 2014-11-05 Gabriele Lami , Marco Cristoforetti , Giuseppe Jurman , Cesare Furlanello , Tommaso Furlanello

Information theoretic measures (entropies, entropy rates, mutual information) are nowadays commonly used in statistical signal processing for real-world data analysis. The present work proposes the use of Auto Mutual Information (Mutual…

Data Analysis, Statistics and Probability · Physics 2019-07-24 C Granero-Belinchón , S. Roux , P. Abry , N. Garnier

We investigate entropy as a financial risk measure. Entropy explains the equity premium of securities and portfolios in a simpler way and, at the same time, with higher explanatory power than the beta parameter of the capital asset pricing…

Pricing of Securities · Quantitative Finance 2015-01-07 Mihaly Ormos , David Zibriczky

Entropy rate of sequential data-streams naturally quantifies the complexity of the generative process. Thus entropy rate fluctuations could be used as a tool to recognize dynamical perturbations in signal sources, and could potentially be…

Information Theory · Computer Science 2014-03-24 Ishanu Chattopadhyay , Hod Lipson

We propose a new type of entropic descriptor that is able to quantify the statistical complexity (a measure of complex behaviour) by taking simultaneously into account the average departures of a system's entropy S from both its maximum…

Statistical Mechanics · Physics 2015-05-13 R. Piasecki , A. Plastino

This work demonstrates how the concept of the entropic potential of events -- a parameter quantifying the influence of discrete events on the expected future entropy of a system -- can enhance uncertainty quantification, decision-making,…

Artificial Intelligence · Computer Science 2025-08-15 Mark Zilberman

An increase in the novelty of news predicts negative stock market returns and negative macroeconomic outcomes over the next year. We quantify news novelty - changes in the distribution of news text - through an entropy measure, calculated…

General Finance · Quantitative Finance 2023-09-12 Paul Glasserman , Harry Mamaysky , Jimmy Qin

This paper aims to show how some popular topics on social networks can be used to predict online newspaper views, related to the topics. Newspapers site and many social networks, become a good source of data to analyse and explain complex…

Diffusion models do not recover semantic structure uniformly over time. Instead, samples transition from semantic ambiguity to class commitment within a narrow regime. Recent theoretical work attributes this transition to dynamical…

Machine Learning · Statistics 2026-02-11 Florian Handke , Dejan Stančević , Felix Koulischer , Thomas Demeester , Luca Ambrogioni

Although instantaneous interactions are unphysical, a large variety of maximum entropy statistical inference methods match the model-inferred and the empirically-measured equal-time correlation functions. Focusing on collective motion of…

Entropy is a measure of self-information which is used to quantify losses. Entropy was developed in thermodynamics, but is also used to compare probabilities based on their deviating information content. Corresponding model uncertainty is…

Probability · Mathematics 2018-01-23 Alois Pichler , Ruben Schlotter

We introduce an epistemic information measure between two data streams, that we term $influence$. Closely related to transfer entropy, the measure must be estimated by epistemic agents with finite memory resources via sampling accessible…

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