A fuzzy method for evaluating similar behavior between assets

In this paper, we propose a fuzzy method to investigate the interconnection between equity markets in the form of similar behavior. It has been proved before that the trend cycle of time series can be well estimated using the fuzzy transform. In the suggested method, first, we approximate the local behavior of stocks as a sequence of their trend cycles. Then we measure the distance between these local trend cycles conducting similar practices between different assets. Two experiments are performed to demonstrate the advantages of the suggested method. This method is easy to calculate, well interpretable, and in addition to statistical co-relation, the measure can assist investors in gaining more intuition about the behavior of their assets.