Correlations between the most developed (G7) countries. A moving average window size optimisation

TL;DR

This paper investigates correlations between G7 countries' GDPs using various distance matrices and graph methods, proposing an optimized moving average window for better correlation analysis.

Contribution

It introduces a procedure to select the best distance function considering the window size for averaging correlations in economic data.

Findings

Significant similarities found between different correlation measures.

A method for optimizing window size improves correlation analysis.

Graph visualizations effectively illustrate the correlations.

Abstract

Different distance matrices are defined and applied to look for correlations between the gross domestic product of G7 countries. Results are illustrated through displays obtained from various graph methods. Significant similarities between results are obtained. A procedure for choosing the best distance function is proposed taking into account the size of the window in which correlation are averaged.