I wrote a dummy PPM that is able to deal with sparse contexts, just for experiments. You know that PAQ series compressors have a sparse model that improves compression on binary files, but it's CM and what about PPM? Previously, RKUC file compressor by Malcolm Taylor that is based on PPM have so called binary contexts - that is our sparse contexts in author terminology. Dunno how Malcolm exactly integrated that sparse stuff into PPM. Anyway, I have my own idea about that, and here is a test results:
No code has to be inserted here.
As you may see, sparse model helps on images but really hurts on other data types...