J.F. Martínez-Trinidad et al. (Eds.): MCPR 2014, LNCS 8495, pp. 92–101, 2014. © Springer International Publishing Switzerland 2014 Positive and Negative Local Trend Association Patterns in Analysis of Associations between Time Series Ildar Batyrshin 1 and Valery Solovyev 2 1 Mexican Petroleum Institute, Mexico, D.F. batyr1@gmail.com 2 Kazan Federal University, Kazan, Russia Abstract. The paper introduces new time series shape association measures based on Euclidean distance. The method of analysis of associations between time series based on separate analysis of positively and negatively associated local trends is discussed. The examples of application of the proposed measures and methods to analysis of associations between historical prices of securities obtained from Google Finance are considered. An example of time series with inverse associations between them is discussed. Keywords: Time series shape association measure, moving approximation transform, local trend associations, hierarchical clustering, Google Finance. 1 Introduction Many time series similarity measures have been introduced in time series data mining during last two decades [1,2,8-11, 14,15]. These measures usually used in time series clustering and similarity search in time series databases. The following examples of the similarity queries over sequence databases have been mentioned in [1]: • Identify companies with similar pattern of growth; • Determine products with similar selling patterns; • Discover stocks with similar movement in stock prices. In [3-4], it was pointed out a need in the measures of associations between time series that additionally to similarity between time series could measure inverse relationships between them. Additionally to considered above examples such measures could be used for finding sequences of competitive companies or products with inverse pat- terns when the rising patterns of one sequence correspond to falling patterns of anoth- er one. In [3], the measures of local trend associations (LTA) based on Moving Approximation Transform (MAT) have been introduced and examples of their appli- cation to analysis of possible relationships between elements of economic and finan- cial systems have been considered. In [5], the method of construction of positive and negative local trend association patterns for any pair of time series based on MAT with window size k=2 has been proposed. An application of this method to analysis of associations between well production data in petroleum reservoirs has been