curl --request POST \
  --url https://api.fincept.in/quantlib/physics/entropy/shannon \
  --header 'Content-Type: application/json' \
  --header 'X-API-Key: <api-key>' \
  --data '
{
  "probabilities": [
    0.4,
    0.3,
    0.2,
    0.1
  ],
  "base": 2.718281828459045
}
'

{
  "success": true,
  "data": {
    "shannon_entropy": 1.2799,
    "base": 2.718281828459045
  }
}

{
  "detail": "Invalid API key"
}

{
  "detail": "Insufficient credits. This endpoint requires 5 credits."
}

{
  "detail": [
    {
      "loc": [
        "<string>"
      ],
      "msg": "<string>",
      "type": "<string>"
    }
  ]
}

quantlib-physics

Calculate Shannon Entropy

Calculates the Shannon entropy of a discrete probability distribution, measuring the average information content or uncertainty. Shannon entropy is fundamental in information theory and is used to quantify the uncertainty in portfolio returns, market regimes, or trading signals. Higher entropy indicates greater uncertainty or diversity in outcomes.

Use Cases:

Measure uncertainty in portfolio return distributions
Quantify information content in market signals
Assess diversity in asset allocations
Evaluate predictability of financial time series
Compare information efficiency across markets

Formula: H(X) = -Σ p(x) log(p(x))

Credits: 5 credits per request (Pro Tier) [Tier: ENTERPRISE, Credits: 10]

POST

quantlib

physics

entropy

shannon

curl --request POST \
  --url https://api.fincept.in/quantlib/physics/entropy/shannon \
  --header 'Content-Type: application/json' \
  --header 'X-API-Key: <api-key>' \
  --data '
{
  "probabilities": [
    0.4,
    0.3,
    0.2,
    0.1
  ],
  "base": 2.718281828459045
}
'

{
  "success": true,
  "data": {
    "shannon_entropy": 1.2799,
    "base": 2.718281828459045
  }
}

{
  "detail": "Invalid API key"
}

{
  "detail": "Insufficient credits. This endpoint requires 5 credits."
}

{
  "detail": [
    {
      "loc": [
        "<string>"
      ],
      "msg": "<string>",
      "type": "<string>"
    }
  ]
}

Authorizations

X-API-Key

string

header

required

API key for authentication. Get your key at https://api.fincept.in/auth/register

Body

application/json

probabilities

number[]

required

Discrete probability distribution (must sum to 1)

Example:

[0.25, 0.25, 0.25, 0.25]

base

number

default:2.718281828459045

Logarithm base for entropy calculation (e=2.718 for nats, 2 for bits, 10 for dits)

Example:

2.718281828459045

Response

Shannon entropy calculated successfully

success

boolean

Example:

true

data

object

Show child attributes

Free Tier (0 credits)

Basic Tier (1 credit)

Standard Tier (2 credits)

Pro Tier (5 credits)

Enterprise Tier (10 credits)

Calculate Shannon Entropy

Authorizations

Body

Response