fintech-algorithms
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Unscented Kalman Filter

Install and import#

bash
npm install fintech-algorithms
ts
import { runFilter } from "fintech-algorithms/statistical-time-series/state-and-regime-models/unscented-kalman-filter";

Signature#

runFilter(observations, config)

Propagates a set of deterministically chosen sigma points through the non-linearity instead of linearising it. More robust than the extended filter for the same cost order, and the usual answer when the EKF diverges.

Parameters#

NameTypeNotes
observationsnumber[]Noisy observations.
config{ a, b, c, q, r, alpha, beta, kappa, initial_mean, initial_variance }alpha, beta and kappa control the sigma-point spread. beta = 2 is optimal for Gaussian state distributions; alpha is normally small.

Returns#

{ …per-step estimates }[]

Per-step estimates with the sigma-point statistics behind them.

Errors#

  • When the sigma-point parameters produce a non-positive-definite covariance — throws

Complexity: time O(n), space O(n).

Worked example#

verified This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

Input#

observations
[0.1740564489, 0.7180957323, 0.0365723689]
config
{
  "a": 0.9,
  "b": 0.22,
  "c": 0.04,
  "q": 0.06,
  "r": 0.49,
  "alpha": 1,
  "beta": 2,
  "kappa": 0,
  "initial_mean": 0,
  "initial_variance": 1.5
}

Call#

runFilter(observations, config)

Returns#

object with 1 field: 2

{
  "2": {
    "index": 2,
    "sigma_left": -0.0995315114397366,
    "sigma_center": 0.4049746384367636,
    "sigma_right": 0.9094807883132638,
    "predicted_mean": 0.4403571228780741,
    "predicted_variance": 0.36471237345744356,
    "predicted_measurement": 0.46270219364315,
    "innovation": -0.42612982474315003,
    "innovation_variance": 0.8812872395279235,
    "kalman_gain": 0.4284195343347881,
    "filtered_mean": 0.2577947817954489,
    "filtered_variance": 0.20295800755826507
  }
}

Diagrams#

Unscented Kalman Filter — diagnostic scorecard
Unscented Kalman Filter — failure boundary
Unscented Kalman Filter — family handoff
Unscented Kalman Filter — scenario comparison
Unscented Kalman Filter — state update
Unscented Kalman Filter — uncertainty ledger

Calculation flow#

Unscented Kalman Filter Causal Update Flow
flowchart LR
    A["Filtered state at t-1"] --> B["Predict state at t"]
    B --> C["Read observation available at t"]
    C --> D["Compute evidence or innovation"]
    D --> E["Normalize or gain-weight update"]
    E --> F["Filtered state at t"]
    F --> G["Publish diagnostics"]
    F --> A

How it works#

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References#

The rest of the State and Regime Models family#