A method for extracting a set of principal time series data of dynamic latent variables. The method includes detecting, by a plurality of sensors, dynamic samples of data each corresponding to one of a plurality of original variables. The method also includes analyzing, using a controller, the dynamic samples of data to determine a plurality of latent variables that represent variation in the dynamic samples of data. The method also includes selecting, by the controller, at least one inner latent variable that corresponds to at least one of the plurality of original variables. The method also includes estimating an estimated current value of the at least one inner latent variable based on previous values of the at least one inner latent variable