The concept of stochastic matrix product states is introduced and a natural
form for the states is derived. This allows to define the analogue of Schmidt
coefficients for steady states of non-equilibrium stochastic processes. We
discuss a new measure for correlations which is analogous to the entanglement
entropy, the entropy cost SC, and show that this measure quantifies the bond
dimension needed to represent a steady state as a matrix product state. We
illustrate these concepts on the hand of the asymmetric exclusion process