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Transfer entropy between communities in complex networks

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  • Jan Korbel
  • Xiongfei Jiang
  • Bo Zheng

Abstract

With the help of transfer entropy, we analyze information flows between communities of complex networks. We show that the transfer entropy provides a coherent description of interactions between communities, including non-linear interactions. To put some flesh on the bare bones, we analyze transfer entropies between communities of five largest financial markets, represented as networks of interacting stocks. Additionally, we discuss information transfer of rare events, which is analyzed by R\'enyi transfer entropy.

Suggested Citation

  • Jan Korbel & Xiongfei Jiang & Bo Zheng, 2017. "Transfer entropy between communities in complex networks," Papers 1706.05543, arXiv.org.
    • Handle: RePEc:arx:papers:1706.05543
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    1. Mantegna,Rosario N. & Stanley,H. Eugene, 2007. "Introduction to Econophysics," Cambridge Books, Cambridge University Press, number 9780521039871.
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    Cited by:

    1. Neto, José de Paula Neves & Figueiredo, Daniel Ratton, 2023. "Ranking influential and influenced stocks over time using transfer entropy networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 630(C).

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