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This paper presents how the most recent improvements made on covariance matrix estimation and model order selection can be applied to the portfolio optimisation problem. The particular case of the Maximum Variety Portfolio is treated but…

Applications · Statistics 2018-04-03 Emmanuelle Jay , Eugénie Terreaux , Jean-Philippe Ovarlez , Frédéric Pascal

The global minimum-variance portfolio is a typical choice for investors because of its simplicity and broad applicability. Although it requires only one input, namely the covariance matrix of asset returns, estimating the optimal solution…

Portfolio Management · Quantitative Finance 2021-01-08 Sven Husmann , Antoniya Shivarova , Rick Steinert

In covariance matrix estimation, one of the challenges lies in finding a suitable model and an efficient estimation method. Two commonly used modelling approaches in the literature involve imposing linear restrictions on the covariance…

Statistics Theory · Mathematics 2024-05-09 Piotr Zwiernik

We consider the problem of subspace estimation in situations where the number of available snapshots and the observation dimension are comparable in magnitude. In this context, traditional subspace methods tend to fail because the…

Information Theory · Computer Science 2016-11-15 Pascal Vallet , Philippe Loubaton , Xavier Mestre

High-dimensional matrix regression has been studied in various aspects, such as statistical properties, computational efficiency and application to specific instances including multivariate regression, system identification and matrix…

Statistics Theory · Mathematics 2024-03-06 Xin Li , Dongya Wu

Covariance matrices are important tools for obtaining reliable parameter constraints. Advancements in cosmological surveys lead to larger data vectors and, consequently, increasingly complex covariance matrices, whose number of elements…

Cosmology and Nongalactic Astrophysics · Physics 2022-05-31 Tassia Ferreira , Valerio Marra

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

This paper studies the problem of estimating a covariance matrix from correlated sub-Gaussian samples. We consider using the correlated sample covariance matrix estimator to approximate the true covariance matrix. We establish…

Information Theory · Computer Science 2019-10-17 Xu Zhang , Wei Cui , Yulong Liu

A coprime array receiver processes a collection of received-signal snapshots to estimate the autocorrelation matrix of a larger (virtual) uniform linear array, known as coarray. By the received-signal model, this matrix has to be (i)…

Signal Processing · Electrical Eng. & Systems 2020-08-31 Dimitris G. Chachlakis , Panos P. Markopoulos

Missing data occur frequently in a wide range of applications. In this paper, we consider estimation of high-dimensional covariance matrices in the presence of missing observations under a general missing completely at random model in the…

Methodology · Statistics 2016-05-17 T. Tony Cai , Anru Zhang

The use of sparse precision (inverse covariance) matrices has become popular because they allow for efficient algorithms for joint inference in high-dimensional models. Many applications require the computation of certain elements of the…

Computation · Statistics 2017-12-06 Per Sidén , Finn Lindgren , David Bolin , Mattias Villani

We propose a novel estimation approach for the covariance matrix based on the $l_1$-regularized approximate factor model. Our sparse approximate factor (SAF) covariance estimator allows for the existence of weak factors and hence relaxes…

Econometrics · Economics 2019-06-14 Maurizio Daniele , Winfried Pohlmeier , Aygul Zagidullina

The covariance matrix plays a fundamental role in many modern exploratory and inferential statistical procedures, including dimensionality reduction, hypothesis testing, and regression. In low-dimensional regimes, where the number of…

Methodology · Statistics 2024-11-12 Philippe Boileau , Nima S. Hejazi , Mark J. van der Laan , Sandrine Dudoit

Localizing more sources than sensors with a sparse linear array (SLA) has long relied on minimizing a distance between two covariance matrices and recent algorithms often utilize semidefinite programming (SDP). Although deep neural network…

Signal Processing · Electrical Eng. & Systems 2025-03-11 Kuan-Lin Chen , Bhaskar D. Rao

The major sources of abundant data are constantly expanding with the available data collection methodologies in various applications - medical, insurance, scientific, bio-informatics and business. These data sets may be distributed…

Distributed, Parallel, and Cluster Computing · Computer Science 2016-06-24 Aruna Govada , Sanjay K. Sahay

This paper tackles the problem of robust covariance matrix estimation when the data is incomplete. Classical statistical estimation methodologies are usually built upon the Gaussian assumption, whereas existing robust estimation ones assume…

In this paper we consider estimation of sparse covariance matrices and propose a thresholding procedure which is adaptive to the variability of individual entries. The estimators are fully data driven and enjoy excellent performance both…

Methodology · Statistics 2011-02-14 Tony Cai , Weidong Liu

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

We offer a method to estimate a covariance matrix in the special case that \textit{both} the covariance matrix and the precision matrix are sparse --- a constraint we call double sparsity. The estimation method is maximum likelihood,…

Methodology · Statistics 2021-08-17 Shev Macnamara , Erik Schlögl , Zdravko I. Botev

This paper deals with the problem of estimating the covariance matrix of a series of independent multivariate observations, in the case where the dimension of each observation is of the same order as the number of observations. Although…

Information Theory · Computer Science 2015-06-03 Jianfeng Yao , Abla Kammoun , Jamal Najim