Copula theory

Notes on copula theory

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Introduction to graph theory

As R-Vine density decompositions can be described in terms of graph theoretic concepts, this page summarizes some basic definitions and theorems required later on. Thereby we try to follow the definitions of [Kolaczyk09] as closely as possible.

Graphs

A graph is a combination of vertices (nodes) and edges. More formally, we define:

Definition: Edge

For a given set of vertices an edge is defined as a pair of distinct vertices , with .

Definition: Directed edge

For a given set of vertices a directed edge or arc is an ordered pair of distinct vertices , where is called tail and is called head.

Definition: Graph

A graph is a tuple consisting of a set of vertices and a set of edges associated with .

Definition: Directed graph

A directed graph or digraph is a graph where edges have ordered vertices: .

Based on this general graph definition some more specific characteristics of graphs can be derived. They are listed in a short glossary:

Graph glossary

  • order: number of vertices
  • size: number of edges
  • adjacency:
    • two vertices are called adjacent if
    • two edges are called adjacent if they share a vertex : and
  • incident: is incident on if is an endpoint of
  • vertex degree : number of edges that share vertex
  • vertex in-degree: number of edges pointing to a vertex in a directed graph
  • walk: an alternating sequence with
  • path: walk without repeated vertices
  • cycle: a walk with distinct vertices except that beginning and ending are equal
  • acyclic graph: a graph without cycles
  • connected graph: there exists a walk from to for every pair of vertices
  • vertex distance: length of shortest path between two vertices
  • walk length:
    • number of vertices within a walk
    • with weighted edges: sum of weights of traversed edges

Trees

An important special case of graphs is the concept of trees:

Definition: Tree

A tree is a connected graph with no cycles.

Definition: Rooted tree

A rooted tree is a directed tree with in-degree for all , and for a single . is called root.

Again, a short glossary that introduces terms to better describe the characteristics of a tree:

Tree glossary

With :

  • parent: for , is called the parent of if there is a directed edge
  • children: is called a child of if there is a directed edge
  • ancestor: all vertices traversed on a path from the root node to are called ancestors of
  • descendant: all vertices traversed on a path from to a leaf node are called descendants of
  • leaf node: a vertex without children

R-Vines: graph theoretic perspective

Graph theoretic perspectives

An R-Vine can be fully characterized in several ways:

  • a set of rooted trees:
    • one conditioning tree per variable
  • a set of trees:
    • original vine representation
    • one tree per layer
    • edges become vertices in next layer

Visualization

Furthermore, it can be perceived and visualized in a number of ways:

  • a set of conditioning trees (unique)
  • original vine representation (unique)
  • a graph of differing complexity: (non-unique representation!)
    • fully connected: all conditional links are shown
    • partly connected: only first layers are shown

References