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In portfolio risk minimization, the inverse covariance matrix of returns is often unknown and has to be estimated in practice. This inverse covariance matrix also prescribes the hedge trades in which a stock is hedged by all the other…

Portfolio Management · Quantitative Finance 2024-07-15 Lim Hao Shen Keith

We introduce an original method of multidimensional ridge penalization in functional local linear regressions. The nonparametric regression of functional data is extended from its multivariate counterpart, and is known to be sensitive to…

Methodology · Statistics 2021-09-20 Wentian Huang , David Ruppert

Ridge estimator is an alternative to ordinary least square estimator when there is multicollinearity problem. There are many proposed estimators in literature. In this paper, we propose new estimators which are modifications of the…

Methodology · Statistics 2015-12-10 Yasin Asar , Aşır Genç

This work addresses the issue of large covariance matrix estimation in high-dimensional statistical analysis. Recently, improved iterative algorithms with positive-definite guarantee have been developed. However, these algorithms cannot be…

Information Theory · Computer Science 2016-07-29 Fei Wen , Yuan Yang , Peilin Liu , Robert C. Qiu

Bayesian methodologies prioritising accurate associations above sparsity in Gaussian graphical model (GGM) estimation remain relatively scarce in scientific literature. It is well accepted that the $\ell_2$ penalty enjoys a smaller…

Methodology · Statistics 2022-10-31 J. Smith , M. Arashi , A. Bekker

Ridge estimators regularize the squared Euclidean lengths of parameters. Such estimators are mathematically and computationally attractive but involve tuning parameters that can be difficult to calibrate. In this paper, we show that ridge…

Methodology · Statistics 2020-02-28 Shih-Ting Huang , Fang Xie , Johannes Lederer

We propose a nonconvex estimator for joint multivariate regression and precision matrix estimation in the high dimensional regime, under sparsity constraints. A gradient descent algorithm with hard thresholding is developed to solve the…

Machine Learning · Statistics 2016-06-03 Jinghui Chen , Quanquan Gu

We address the challenge of correlated predictors in high-dimensional GLMs, where regression coefficients range from sparse to dense, by proposing a data-driven random projection method. This is particularly relevant for applications where…

Methodology · Statistics 2025-12-30 Roman Parzer , Peter Filzmoser , Laura Vana-Gür

We investigate the application of sufficient dimension reduction (SDR) to a noiseless data set derived from a deterministic function of several variables. In this context, SDR provides a framework for ridge recovery. In this second part, we…

Numerical Analysis · Mathematics 2018-08-10 Andrew Glaws , Paul G. Constantine , R. Dennis Cook

This paper analyzes the estimation of econometric models by penalizing the sum of squares of the residuals with a factor that makes the model estimates approximate those that would be obtained when considering the possible simple…

Statistics Theory · Mathematics 2024-05-10 Román Salmerón Gómez , Catalina B. García García

We develop a method for estimating well-conditioned and sparse covariance and inverse covariance matrices from a sample of vectors drawn from a sub-gaussian distribution in high dimensional setting. The proposed estimators are obtained by…

Statistics Theory · Mathematics 2016-11-21 Ashwini Maurya

We consider estimation of undirected Gaussian graphical models and inverse covariances in high-dimensional scenarios by penalizing the corresponding precision matrix. While single $L_1$ (Graphical Lasso) and $L_2$ (Graphical Ridge)…

Methodology · Statistics 2021-01-07 Solt Kovács , Tobias Ruckstuhl , Helena Obrist , Peter Bühlmann

Understanding generalization and estimation error of estimators for simple models such as linear and generalized linear models has attracted a lot of attention recently. This is in part due to an interesting observation made in machine…

Machine Learning · Statistics 2021-03-09 Mojtaba Sahraee-Ardakan , Tung Mai , Anup Rao , Ryan Rossi , Sundeep Rangan , Alyson K. Fletcher

We introduce an estimation method of covariance matrices in a high-dimensional setting, i.e., when the dimension of the matrix, , is larger than the sample size . Specifically, we propose an orthogonally equivariant estimator. The…

Statistics Theory · Mathematics 2020-12-04 Samprit Banerjee , Stefano Monni

In this paper, we propose a random projection approach to estimate variance in kernel ridge regression. Our approach leads to a consistent estimator of the true variance, while being computationally more efficient. Our variance estimator is…

Statistics Theory · Mathematics 2018-09-18 Meimei Liu , Jean Honorio , Guang Cheng

Penalization schemes like Lasso or ridge regression are routinely used to regress a response of interest on a high-dimensional set of potential predictors. Despite being decisive, the question of the relative strength of penalization is…

Methodology · Statistics 2018-11-08 Britta Velten , Wolfgang Huber

Methods for learning from data depend on various types of tuning parameters, such as penalization strength or step size. Since performance can depend strongly on these parameters, it is important to compare classes of estimators-by…

Statistics Theory · Mathematics 2022-06-14 Dominic Richards , Edgar Dobriban , Patrick Rebeschini

We consider the problem of estimating covariance and precision matrices, and their associated discriminant coefficients, from normal data when the rank of the covariance matrix is strictly smaller than its dimension and the available sample…

Statistics Theory · Mathematics 2015-09-09 Didier Chételat , Martin T. Wells

We introduce the concept of coverage risk as an error measure for density ridge estimation. The coverage risk generalizes the mean integrated square error to set estimation. We propose two risk estimators for the coverage risk and we show…

Methodology · Statistics 2015-06-09 Yen-Chi Chen , Christopher R. Genovese , Shirley Ho , Larry Wasserman

Relying on recent advances in statistical estimation of covariance distances based on random matrix theory, this article proposes an improved covariance and precision matrix estimation for a wide family of metrics. The method is shown to…

Machine Learning · Statistics 2021-02-03 Malik Tiomoko , Florent Bouchard , Guillaume Ginholac , Romain Couillet