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Dependency network

Network analysis approach

  • 6 min read
  • 5 chapters

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Through Topology, Graph (discrete mathematics) and Immune system

In the case of network activity, the analysis is based on partial correlations. In simple words, the partial (or residual) correlation is a measure of the effect (or contribution) of a given node, say j, on the correlations between another pair of nodes, say i and k. Using this concept, the dependency of one node on another node is calculated for the entire network. This results in a directed weighted adjacency matrix of a fully connected network. Once the adjacency matrix has been constructed, different algorithms can be used to construct the network, such as a threshold network, Minimal Spanning Tree (MST), Planar Maximally Filtered Graph (PMFG), and others.

Importance

The partial correlation based dependency network is a class of correlation network, capable of uncovering hidden relationships between its nodes.

This original methodology was first presented at the end of 2010, published in PLoS ONE. The authors quantitatively uncovered hidden information about the underlying structure of the U.S. stock market, information that was not present in the standard correlation networks. One of the main results of this work is that for the investigated time period (2001–2003), the structure of the network was dominated by companies belonging to the financial sector, which are the hubs in the dependency network. Thus, they were able for the first time to quantitatively show the dependency relationships between the different economic sectors. Following this work, the dependency network methodology has been applied to the study of the immune system, semantic networks, and functional brain networks.

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