Time-Series Forecasting Software, Stock Market Prediction, Sales Forecasting Software

Kernel Smoothing

Kernel smoothing is a group of powerful smoothing algorithms that consists in applying a function known as the kernel to each data point in the time-series. Kernel Smoothing belongs to the class of weighted moving averages.

This means in practice that all the points in the time-series are weighted using as weights the results of the computation of the kernel function.

Every kernel function has several properties:
All kernel values are positive or zero.
The kernel functions are normally symmetric.
Kernel function values decrease to zero from a central (maximum) value.

The kernel functions supported by IPredict’s library are the following:

Kernel Name Kernel Equation Kernel Example Plot
Gaussian K(t) = e-λ * t2 Gaussian Kernel
Hilbert K(t) = -π / t Hilbert Kernel
Triangle K(T) = 1 - Abs(t) Triangle Kernel
Epanechnicov K(t) = 3/4 * (1 - t2) Epanechnicov Kernel
Quartic K(t) = 15/16 * (1 - t2)2 Quartic Kernel
Triweight K(t) = 35/32 * (1 - t2)3 Triweight Kernel
Cosine K(t) = -π/4 * Cos(π/2 * t) Cosine Kernel



References:

Kernel Smoothing, M.P. Wand and M.C. Jones
White Noise Theory of Prediction, Filtering and Smoothing, G. Kallianpur and Rajeeva Karandikar



Wikipedia definition for Kernel



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