curl --request POST \
  --url https://api.fincept.in/quantlib/physics/entropy/markov-rate \
  --header 'Content-Type: application/json' \
  --header 'X-API-Key: <api-key>' \
  --data '
{
  "transition_matrix": [
    [
      0.8,
      0.15,
      0.05
    ],
    [
      0.2,
      0.7,
      0.1
    ],
    [
      0.1,
      0.2,
      0.7
    ]
  ],
  "base": 2.718281828459045
}
'

{
  "success": true,
  "data": {
    "entropy_rate": 0.6547
  }
}

{
  "detail": "Invalid API key"
}

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

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

quantlib-physics

Calculate Markov Chain Entropy Rate

Calculates the entropy rate of a Markov chain, measuring the long-run average uncertainty per time step. The entropy rate characterizes the complexity and predictability of a stochastic process governed by Markov transitions, useful for modeling regime-switching markets and state-dependent strategies.

Use Cases:

Measure predictability of market regime transitions
Characterize complexity of state-based trading strategies
Analyze credit rating transition dynamics
Model path-dependent risk scenarios
Assess information generation rate in stochastic processes

Formula: H_rate = -ΣΣ π_i P_ij log(P_ij), where π is stationary distribution

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

POST

quantlib

physics

entropy

markov-rate

curl --request POST \
  --url https://api.fincept.in/quantlib/physics/entropy/markov-rate \
  --header 'Content-Type: application/json' \
  --header 'X-API-Key: <api-key>' \
  --data '
{
  "transition_matrix": [
    [
      0.8,
      0.15,
      0.05
    ],
    [
      0.2,
      0.7,
      0.1
    ],
    [
      0.1,
      0.2,
      0.7
    ]
  ],
  "base": 2.718281828459045
}
'

{
  "success": true,
  "data": {
    "entropy_rate": 0.6547
  }
}

{
  "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

transition_matrix

number[][]

required

Markov transition probability matrix (rows must sum to 1)

Example:

[
  [0.7, 0.2, 0.1],
  [0.3, 0.5, 0.2],
  [0.1, 0.3, 0.6]
]

stationary_dist

number[] | null

Stationary distribution (optional - will be computed if not provided)

Example:

[0.35, 0.35, 0.3]

base

number

default:2.718281828459045

Logarithm base for entropy calculation

Example:

2.718281828459045

Response

Markov entropy rate 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 Markov Chain Entropy Rate

Authorizations

Body

Response