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Factorization-based models have gained popularity since the Netflix challenge {(2007)}. Since that, various factorization-based models have been developed and these models have been proven to be efficient in predicting users' ratings…

Artificial Intelligence · Computer Science 2024-05-15 Jinfeng Zhong , Elsa Negre

Financial scenario simulation is essential for risk management and portfolio optimization, yet it remains challenging especially in high-dimensional and small data settings common in finance. We propose a diffusion factor model that…

Statistical Finance · Quantitative Finance 2026-01-13 Minshuo Chen , Renyuan Xu , Yumin Xu , Ruixun Zhang

Factor models have become a common and valued tool for understanding the risks associated with an investing strategy. In this report we describe Exabel's factor model, we quantify the fraction of the variability of the returns explained by…

Applications · Statistics 2022-03-24 Øyvind Grotmol , Michael Scheuerer , Kjersti Aas , Martin Jullum

Factor modeling is a powerful statistical technique that permits to capture the common dynamics in a large panel of data with a few latent variables, or factors, thus alleviating the curse of dimensionality. Despite its popularity and…

Econometrics · Economics 2021-03-03 Varlam Kutateladze

We consider change-point latent factor models for high-dimensional time series, where a structural break may exist in the underlying factor structure. In particular, we propose consistent estimators for factor loading spaces before and…

Methodology · Statistics 2019-07-24 Xialu Liu , Ting Zhang

Psychiatry research seeks to understand the manifestations of psychopathology in behavior, as measured in questionnaire data, by identifying a small number of latent factors that explain them. While factor analysis is the traditional tool…

Machine Learning · Computer Science 2026-03-18 Ka Chun Lam , Bridget W Mahony , Armin Raznahan , Francisco Pereira

Hierarchical model fitting has become commonplace for case-control studies of cognition and behaviour in mental health. However, these techniques require us to formalise assumptions about the data-generating process at the group level,…

Computers and Society · Computer Science 2020-11-04 Vincent Valton , Toby Wise , Oliver J. Robinson

Matrix-variate data of high dimensions are frequently observed in finance and economics, spanning extended time periods, such as the long-term data on international trade flows among numerous countries. To address potential structural…

Methodology · Statistics 2024-04-03 Bin Chen , Elynn Y. Chen , Stevenson Bolivar , Rong Chen

In many longitudinal settings, economic theory does not guide practitioners on the type of restrictions that must be imposed to solve the rotational indeterminacy of factor-augmented linear models. We study this problem and offer several…

Econometrics · Economics 2022-03-08 Matthew Harding , Carlos Lamarche , Chris Muris

We tackle the challenges of modeling high-dimensional data sets, particularly those with latent low-dimensional structures hidden within complex, non-linear, and noisy relationships. Our approach enables a seamless integration of concepts…

Machine Learning · Statistics 2025-03-17 Zichuan Guo , Mihai Cucuringu , Alexander Y. Shestopaloff

Recommender systems are essential tools in the digital era, providing personalized content to users in areas like e-commerce, entertainment, and social media. Among the many approaches developed to create these systems, latent factor models…

Information Retrieval · Computer Science 2025-01-06 Hind I. Alshbanat , Hafida Benhidour , Said Kerrache

Ever since the seminal work of R. A. Fisher and F. Yates, factorial designs have been an important experimental tool to simultaneously estimate the effects of multiple treatment factors. In factorial designs, the number of treatment…

Methodology · Statistics 2024-03-21 Lei Shi , Jingshen Wang , Peng Ding

We propose a new modeling paradigm for large dimensional aggregates of stochastic systems by Generalized Factor Analysis (GFA) models. These models describe the data as the sum of a flocking plus an uncorrelated idiosyncratic component. The…

Systems and Control · Computer Science 2014-03-27 Giulio Bottegal , Giorgio Picci

Confirmatory factor analysis (CFA) is a statistical method for identifying and confirming the presence of latent factors among observed variables through the analysis of their covariance structure. Compared to alternative factor models, CFA…

Methodology · Statistics 2024-10-08 Yifan Yang , Tianzhou Ma , Chuan Bi , Shuo Chen

Volatilities, in high-dimensional panels of economic time series with a dynamic factor structure on the levels or returns, typically also admit a dynamic factor decomposition. We consider a two-stage dynamic factor model method recovering…

Econometrics · Economics 2022-02-03 Matteo Barigozzi , Marc Hallin

Cluster-weighted factor analyzers (CWFA) are a versatile class of mixture models designed to estimate the joint distribution of a random vector that includes a response variable along with a set of explanatory variables. They are…

Methodology · Statistics 2024-11-07 Xiaoke Qin , Francesca Martella , Sanjeena Subedi

We consider statistical inference in factor analysis for ergodic and non-ergodic diffusion processes from discrete observations. Factor model based on high frequency time series data has been mainly discussed in the field of high…

Statistics Theory · Mathematics 2022-02-04 Shogo Kusano , Masayuki Uchida

Factor analysis is over a century old, but it is still problematic to choose the number of factors for a given data set. The scree test is popular but subjective. The best performing objective methods are recommended on the basis of…

Methodology · Statistics 2015-11-12 A. B. Owen , J. Wang

We develop a new framework for constructing factors from firm characteristics that balances statistical efficiency and economic interpretability. Instead of using all characteristics equally, our method groups related characteristics and…

Pricing of Securities · Quantitative Finance 2025-08-05 Yuxiao Jiao , Guofu Zhou , Wu Zhu , Yingzi Zhu

Bayesian sparse factor models have proven useful for characterizing dependence in multivariate data, but scaling computation to large numbers of samples and dimensions is problematic. We propose expandable factor analysis for scalable…

Methodology · Statistics 2018-06-21 Sanvesh Srivastava , Barbara E. Engelhardt , David B. Dunson