Dynamic spatiotemporal correlation coefficient based on adaptive weight

Abstract Risk management is an important aspect of financial research because correlations among data are essential in evaluating portfolio risk. Among various correlations, spatiotemporal involve economic entity attributes and interrelated space time. Such have therefore drawn increasing attention risk management. However, classical correlation measurements typically based on either time series or spatial dependence; they cannot be directly applied to with correlations. The coefficient model adaptive weight proposed this paper can (1) address the absolute quantity, dynamic development (2) used for grading, evaluation, To verify validity superiority model, cluster analysis results performance compared a correlation, respectively. Empirical findings show that highly effective convenient others. Overall, our method provides efficient valuable implications investors institutions.