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We analyze the spectral properties of correlation matrices between distinct statistical systems. Such matrices are intrinsically non symmetric, and lend themselves to extend the spectral analyses usually performed on standard Pearson…

Statistical Finance · Quantitative Finance 2012-06-29 Giacomo Livan , Luca Rebecchi

We present a general method to detect and extract from a finite time sample statistically meaningful correlations between input and output variables of large dimensionality. Our central result is derived from the theory of free random…

Data Analysis, Statistics and Probability · Physics 2008-12-02 Jean-Philippe Bouchaud , Laurent Laloux , M. Augusta Miceli , Marc Potters

Complex systems are typically represented by large ensembles of observations. Correlation matrices provide an efficient formal framework to extract information from such multivariate ensembles and identify in a quantifiable way patterns of…

Data Analysis, Statistics and Probability · Physics 2011-06-03 Stanislaw Drozdz , Jaroslaw Kwapien , Andreas A. Ioannides

We show how random matrix theory can be applied to develop new algorithms to extract dynamic factors from macroeconomic time series. In particular, we consider a limit where the number of random variables N and the number of consecutive…

Statistical Finance · Quantitative Finance 2023-07-19 Małgorzata Snarska

We consider a random matrix model with both pairwise and non-pairwise contracted indices. The partition function of the matrix model is similar to that appearing in some replicated systems with random tensor couplings, such as the p-spin…

High Energy Physics - Theory · Physics 2019-12-06 Luca Lionni , Naoki Sasakura

Financial markets are highly correlated systems that reveal both the inter-market dependencies and the correlations among their different components. Standard analyzing techniques include correlation coefficients for pairs of signals and…

Physics and Society · Physics 2008-12-02 J. Kwapien , S. Drozdz , A. Z. Gorski , P. Oswiecimka

The advantages and disadvantages of some pedagogical non-relativistic quantum-mechanical models, used to illustrate spontaneous symmetry breakdown, are discussed. A simple quantum-mechanical toy model (a spinor on the line, subject to a…

Mathematical Physics · Physics 2012-10-26 R. Munoz-Vega , A. Garcia-Quiroz , Ernesto Lopez-Chavez , Encarnacion Salinas-Hernandez

Simulating sample correlation matrices is important in many areas of statistics. Approaches such as generating Gaussian data and finding their sample correlation matrix or generating random uniform $[-1,1]$ deviates as pairwise correlations…

Statistics Theory · Mathematics 2013-12-09 Johanna Hardin , Stephan Ramon Garcia , David Golan

We investigate a number of simple toy models to explore interesting relationships between dynamics and typicality. We start with an infinite model that has been proposed as an illustration of how non-ergodic dynamics can produce interesting…

Cosmology and Nongalactic Astrophysics · Physics 2015-06-12 Aaron Hernley , Andreas Albrecht , Tevian Dray

A local, deterministic toy model for quantum mechanics is introduced and discussed. It is demonstrated that, when averaged over the hidden variables, the model produces the same predictions as quantum mechanics. In the model considered…

Quantum Physics · Physics 2022-09-07 Sandro Donadi , Sabine Hossenfelder

To gain insight into the mechanisms behind machine learning methods, it is crucial to establish connections among the features describing data points. However, these correlations often exhibit a high-dimensional and strongly nonlinear…

Machine Learning · Computer Science 2025-03-04 Lorenzo Basile , Santiago Acevedo , Luca Bortolussi , Fabio Anselmi , Alex Rodriguez

In complex systems, many different parts interact in non-obvious ways. Traditional research focuses on a few or a single aspect of the problem so as to analyze it with the tools available. To get a better insight of phenomena that emerge…

Multiagent Systems · Computer Science 2015-04-03 Klaus Jaffe

We introduce a toy probabilistic model to analyze job-matching processes in recent Japanese labor markets for university graduates by means of statistical physics. We show that the aggregation probability of each company is rewritten by…

General Finance · Quantitative Finance 2013-09-23 He Chen , Jun-ichi Inoue

We analyze correlation functions in a toy model of a random geometry interacting with matter. We show that in general the connected correlator will contain a long-range scaling part which is in some sense a remnant of the disconnected part.…

High Energy Physics - Lattice · Physics 2015-06-25 J. Ambjorn , P. Bialas , J. Jurkiewicz

Financial correlations play a central role in financial theory and also in many practical applications. From theoretical point of view, the key interest is in a proper description of the structure and dynamics of correlations. From…

Statistical Mechanics · Physics 2009-11-10 Szilard Pafka , Imre Kondor

We study the large deviations of sums of correlated random variables described by a matrix product ansatz, which generalizes the product structure of independent random variables to matrices whose non-commutativity is the source of…

Statistical Mechanics · Physics 2014-02-18 Florian Angeletti , Hugo Touchette , Eric Bertin , Patrice Abry

We analyze correlation functions in a toy model of a random geometry interacting with matter. We show that in general the connected correlator will contain a long--range scaling part. This result supports the previously conjectured general…

Statistical Mechanics · Physics 2009-10-31 Piotr Bialas

This is a tutorial on some basic non-asymptotic methods and concepts in random matrix theory. The reader will learn several tools for the analysis of the extreme singular values of random matrices with independent rows or columns. Many of…

Probability · Mathematics 2014-05-21 Roman Vershynin

To construct models of large, multivariate complex systems, such as those in biology, one needs to constrain which variables are allowed to interact. This can be viewed as detecting "local" structures among the variables. In the context of…

Data Analysis, Statistics and Probability · Physics 2023-10-19 Mahajabin Rahman , Ilya Nemenman

This review covers recent results concerning the estimation of large covariance matrices using tools from Random Matrix Theory (RMT). We introduce several RMT methods and analytical techniques, such as the Replica formalism and Free…

Statistical Mechanics · Physics 2017-02-01 Joël Bun , Jean-Philippe Bouchaud , Marc Potters
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