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An Updated Literature Review of Distance Correlation and Its Applications to Time Series

An Updated Literature Review of Distance Correlation and Its Applications to Time Series

Summary The concept of distance covariance/correlation was introduced recently to characterise dependence among vectors of random variables. We review some statistical aspects of distance covariance/correlation function, and we demonstrate its applicability to time series analysis. We will see that the autoā€distance covariance/correlation function is able to identify nonā€linear relationships and ā€¦