On similarity of financial data series based on fractal dimension

Jian Rong Hou, Hui Zhao, Pei Huang

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

Abstract

Financial time series show the non-linear and fractal characters in the process of time-space kinetics evolution. Traditional dimension reduction methods for similarity query introduce the smoothness to data series in some degree. In the case of unknowing the fractal dimension of financial non-stationary time series, the process of querying the similarity of curve figure will be affected to a certain degree. In this paper, an evaluation formula of varying-time Hurst index is established and the algorithm of varying-time index is presented, and a new determinant standard of series similarity is also introduced. The similarity of curve basic figure is queried and measured at some resolution ratio level. In the meantime, the fractal dimension in local similarity is matched. The effectiveness of the method is validated by means of the simulation examples.

Original languageEnglish
Title of host publicationAdvanced Data Mining and Applications - Second International Conference, ADMA 2006, Proceedings
EditorsXue Li, Osmar R. Zaïane, Zhanhuai Li
PublisherSpringer Verlag
Pages782-789
Number of pages8
ISBN (Print)3540370250, 9783540370253
DOIs
StatePublished - 2006
Event2nd International Conference on Advanced Data Mining and Applications, ADMA 2006 - Xi'an, China
Duration: 14 Aug 200616 Aug 2006

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume4093 LNAI
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference2nd International Conference on Advanced Data Mining and Applications, ADMA 2006
Country/TerritoryChina
CityXi'an
Period14/08/0616/08/06

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