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Community Detection in Partial Correlation Network Models

Christian T. Brownlees, Guðmundur Guðmundsson, Gábor Lugosi

2020Journal of Business and Economic Statistics20 citationsDOI

Abstract

We introduce a class of partial correlation network models with a community structure for large panels of time series. In the model, the series are partitioned into latent groups such that correlation is higher within groups than between them. We then propose an algorithm that allows one to detect the communities using the eigenvectors of the sample covariance matrix. We study the properties of the procedure and establish its consistency. The methodology is used to study real activity clustering in the United States.

Topics & Concepts

Covariance matrixCluster analysisConsistency (knowledge bases)CorrelationSeries (stratigraphy)Partial correlationData miningLatent class modelComputer scienceCovarianceCommunity structureEigenvalues and eigenvectorsSample (material)StatisticsArtificial intelligenceMathematicsAlgorithmChromatographyBiologyGeometryQuantum mechanicsChemistryPaleontologyPhysicsComplex Network Analysis TechniquesMental Health Research TopicsComplex Systems and Time Series Analysis
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