Coverage of the coronavirus pandemic through entropy measures

- Soloviev, V.N. (orcid.org/0000-0002-4945-202X), Bielinskyi, Andrii (orcid.org/0000-0002-2821-2895) and Kharadzjan, Natalia A. (orcid.org/0000-0001-9193-755X) (2021) Coverage of the coronavirus pandemic through entropy measures Proceedings of the 3rd Workshop for Young Scientists in Computer Science & Software Engineering (CS&SE@SW 2020) Kryvyi Rih, Ukraine, November 27, 2020, 2832. pp. 24-42. ISSN 1613-0073

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Abstract

The rapidly evolving coronavirus pandemic brings a devastating effect on the entire world and its econ- omy as a whole. Further instability related to COVID-19 will negatively affect not only on companies and financial markets, but also on traders and investors that have been interested in saving their investment, minimizing risks, and making decisions such as how to manage their resources, how much to consume and save, when to buy or sell stocks, etc., and these decisions depend on the expectation of when to expect next critical change. Trying to help people in their subsequent decisions, we demonstrate the possibility of constructing indicators of critical and crash phenomena on the example of Bitcoin market crashes for further demonstration of their efficiency on the crash that is related to the coronavirus pandemic. For this purpose, the methods of the theory of complex systems have been used. Since the theory of complex systems has quite an extensive toolkit for exploring the nonlinear complex system, we take a look at the application of the concept of entropy in finance and use this concept to construct 6 effective entropy measures: Shannon entropy, Approximate entropy, Permutation entropy, and 3 Recurrence based entropies. We provide computational results that prove that these indicators could have been used to identify the beginning of the crash and predict the future course of events associated with the current pandemic.

Item Type:	Article
Keywords:	coronavirus, Bitcoin, cryptocurrency, crash, critical event, measures of complexity, entropy, indicator-precursor
Subjects:	Science and knowledge. Organization. Computer science. Information. Documentation. Librarianship. Institutions. Publications > 00 Prolegomena. Fundamentals of knowledge and culture. Propaedeutics > 004 Computer science and technology. Computing. Data processing > 004.9 ІКТ ( Application-oriented computer-based techniques ) > 004.94 Simulation Science and knowledge. Organization. Computer science. Information. Documentation. Librarianship. Institutions. Publications > 3 Social Sciences > 33 Economics. Economic science
Divisions:	Institute for Digitalisation of Education > Joint laboratory with SIHE “Kryvyi Rih National University”
Depositing User:	Сергій Олексійович Семеріков
Date Deposited:	19 Nov 2021 22:18
Last Modified:	19 Nov 2021 22:18
URI:	https://lib.iitta.gov.ua/id/eprint/727226

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