Categorical Variable Encoding in Python

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I have categorical variables like FT, PT, PIT, FY, TY, HS, XS etc [2/3 Lettered Strings]

I want to encode them in such a way that FT, PT would be more closer as they have T in common. This would enable me to feed them into ML model. As my model relies on the closeness of these variables, encoding them in such manner is necessary.

I have tried all types of encoding namely Label, Hashing, One Hot (Don't want to increase dimensionality), Binary, etc .

  1. Is it possible?
  2. What other approach can I try?
categorical-data machine-learning string encoding python-3.x
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