A novel entropy of intuitionistic fuzzy sets based on similarity and its application in finance

In this paper, we propose a new formula for the entropy based on similarity measures of intuitionistic fuzzy sets (IFS). The contribution of this work is the proof that the new formula satisfies all the conditions of entropy. The experimentation on some examples shows that the new entropy is useful....

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Bibliographic Details
Published inJournal of intelligent & fuzzy systems Vol. 43; no. 4; pp. 3899 - 3909
Main Authors Tran, Duc Quynh, Nguyen, Xuan Thao, Nguyen, Doan Dong, Nguyen, Quang Thuan
Format Journal Article
LanguageEnglish
Published Amsterdam IOS Press BV 01.01.2022
Subjects
Algorithms
Experimentation
Fuzzy sets
Similarity
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Summary:In this paper, we propose a new formula for the entropy based on similarity measures of intuitionistic fuzzy sets (IFS). The contribution of this work is the proof that the new formula satisfies all the conditions of entropy. The experimentation on some examples shows that the new entropy is useful. Besides, we use the new entropy and similarity measures to design an algorithm for ranking assets in stock markets. The numerical results on 5 benchmark data sets were reported. It points out that the entropy and the similarity measures of IFS may provide an alternative tool for solving portfolio selection problems.
ISSN:1064-1246
1875-8967
DOI:10.3233/JIFS-211563