What can be inferred from surrogate data testing?

Surrogate data testing for linearity is frequently applied to confirm the results of nonlinear time series analysis. We argue that this, in general, is not possible.Comment: 1 pag

Regional and inter-regional effects in evolving climate networks

Complicated systems composed of many interacting subsystems are frequently studied as complex networks. In the simplest approach, a given real-world system is represented by an undirected graph composed of nodes standing for the subsystems and non-oriented unweighted edges for interactions present among the nodes; the characteristic properties of the graph are subsequently studied and related to the system's behaviour. More detailed graph models may include edge weights, orientations or multiple types of links; potential time-dependency of edges is conveniently captured in so-called evolving networks. Recently, it has been shown that an evolving climate network can be used to disentangle different types of El Niño episodes described in the literature. The time evolution of several graph characteristics has been compared with the intervals of El Niño and La Niña episodes. In this study we identify the sources of the evolving network characteristics by considering a reduced-dimensionality description of the climate system using network nodes given by rotated principal component analysis. The time evolution of structures in local intra-component networks is studied and compared to evolving inter-component connectivity

Inference of financial networks using the normalised mutual information rate

In this paper we study data from financial markets using an information theory tool that we call the normalised Mutual Information Rate and show how to use it to infer the underlying network structure of interrelations in foreign currency exchange rates and stock indices of 14 countries world-wide and the European Union. We first present the mathematical method and discuss about its computational aspects, and then apply it to artificial data from chaotic dynamics and to correlated random variates. Next, we apply the method to infer the network structure of the financial data. Particularly, we study and reveal the interrelations among the various foreign currency exchange rates and stock indices in two separate networks for which we also perform an analysis to identify their structural properties. Our results show that both are small-world networks sharing similar properties but also having distinct differences in terms of assortativity. Finally, the consistent relationships depicted among the 15 economies are further supported by a discussion from the economics view point

Complex systems methods characterizing nonlinear processes in the near-Earth electromagnetic environment: recent advances and open challenges

Learning from successful applications of methods originating in statistical mechanics, complex systems science, or information theory in one scientific field (e.g., atmospheric physics or climatology) can provide important insights or conceptual ideas for other areas (e.g., space sciences) or even stimulate new research questions and approaches. For instance, quantification and attribution of dynamical complexity in output time series of nonlinear dynamical systems is a key challenge across scientific disciplines. Especially in the field of space physics, an early and accurate detection of characteristic dissimilarity between normal and abnormal states (e.g., pre-storm activity vs. magnetic storms) has the potential to vastly improve space weather diagnosis and, consequently, the mitigation of space weather hazards. This review provides a systematic overview on existing nonlinear dynamical systems-based methodologies along with key results of their previous applications in a space physics context, which particularly illustrates how complementary modern complex systems approaches have recently shaped our understanding of nonlinear magnetospheric variability. The rising number of corresponding studies demonstrates that the multiplicity of nonlinear time series analysis methods developed during the last decades offers great potentials for uncovering relevant yet complex processes interlinking different geospace subsystems, variables and spatiotemporal scales

Northern Hemisphere patterns of phase coherence between solar/geomagnetic activity and NCEP/NCAR and ERA40 near-surface air temperature in period 7–8 years oscillatory modes

Beginning from the 1950's, Paluš and Novotná (2009) observed statistically significant phase coherence among oscillatory modes with the period of approximately 7–8 years detected in monthly time series of sunspot numbers, geomagnetic activity aa index, North Atlantic Oscillation (NAO) index and near-surface air temperature from several mid-latitude European stations. Focusing on geographical distribution of the phenomenon we study Northern Hemisphere patterns of phase coherence between solar/geomagnetic activity and NCEP/NCAR and ERA40 near-surface air temperature. Both the reanalysis datasets provide consistent patterns of areas with marked phase coupling between solar/geomagnetic activity and climate variability observed in continuous monthly data, independent of the season, however, confined to the temporal scale related to the oscillatory periods about 7–8 years