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Due to their type of mathematical construction, the use of standard financial ratios in studies analysing the financial health of a group of firms leads to a series of statistical problems that can invalidate the results obtained. These…

Statistical Finance · Quantitative Finance 2025-05-28 Salvador Linares-Mustarós , Maria Àngels Farreras-Noguer , Núria Arimany-Serrat , Germà Coenders

Using standard financial ratios as variables in statistical analyses has been related to several serious problems, such as extreme outliers, asymmetry, non-normality, and non-linearity. The compositional-data methodology has been…

Statistical Finance · Quantitative Finance 2026-05-20 Fatemeh Keivani , Germà Coenders , Geòrgia Escaramís

Purpose: The article aims to visualise in a single graph fish and meat processing company groups in Spain with respect to long-term solvency, energy, waste and water intensity and gender employment gap. Design/methodology/approach: The…

Statistical Finance · Quantitative Finance 2026-02-02 Elena Rondós-Casas , Germà Coenders , Miquel Carreras-Simó , Núria Arimany-Serrat

Most empirical works that study the financing decisions of family businesses use financial ratios. These data present asymmetry, non-normality, non-linearity and even dependence on the results of the choice of which accounting figure goes…

Statistical Finance · Quantitative Finance 2025-01-29 Geòrgia Escaramís , Anna Arbussà

Compositional data represent a specific family of multivariate data, where the information of interest is contained in the ratios between parts rather than in absolute values of single parts. The analysis of such specific data is…

Statistical analysis on compositional data has gained a lot of attention due to their great potential of applications. A feature of these data is that they are multivariate vectors that lie in the simplex, that is, the components of each…

Compositional data analysis is concerned with multivariate data that have a constant sum, usually 1 or 100\%. These are data often found in biochemistry and geochemistry, but also in the social sciences, when relative values are of interest…

Methodology · Statistics 2021-10-26 Michael Greenacre

Compositional data are commonly known as multivariate observations carrying relative information. Even though the case of vector or even two-factorial compositional data (compositional tables) is already well described in the literature,…

Methodology · Statistics 2022-01-26 Kamila Fačevicová , Peter Filzmoser , Karel Hron

Traditional methods for the analysis of compositional data consider the log-ratios between all different pairs of variables with equal weight, typically in the form of aggregated contributions. This is not meaningful in contexts where it is…

Methodology · Statistics 2022-01-27 Christopher Rieser , Peter Filzmoser

Many scientific datasets are compositional in nature. Important biological examples include species abundances in ecology, cell-type compositions derived from single-cell sequencing data, and amplicon abundance data in microbiome research.…

Machine Learning · Computer Science 2024-05-29 Elisabeth Ailer , Christian L. Müller , Niki Kilbertus

Compositional data (i.e., data comprising random variables that sum up to a constant) arises in many applications including microbiome studies, chemical ecology, political science, and experimental designs. Yet when compositional data serve…

Methodology · Statistics 2025-01-03 Ritwik Bhaduri , Siyuan Ma , Lucas Janson

The study of immune cellular composition has been of great scientific interest in immunology because of the generation of multiple large-scale data. From the statistical point of view, such immune cellular data should be treated as…

Applications · Statistics 2022-04-22 Jinkyung Yoo , Zequn Sun , Michael Greenacre , Qin Ma , Dongjun Chung , Young Min Kim

In compositional data analysis an observation is a vector containing non-negative values, only the relative sizes of which are considered to be of interest. Without loss of generality, a compositional vector can be taken to be a vector of…

Methodology · Statistics 2015-06-18 Michail Tsagris , Simon Preston , Andrew T. A. Wood

Compositional data consist of known compositions vectors whose components are positive and defined in the interval (0,1) representing proportions or fractions of a "whole". The sum of these components must be equal to one. Compositional…

Applications · Statistics 2015-07-02 Taciana K. O. Shimizu , Francisco Louzada , Adriano K. Suzuki , Ricardo S. Ehlers

Compositional data are multivariate observations that carry only relative information between components. Applying standard multivariate statistical methodology directly to analyze compositional data can lead to paradoxes and…

Applications · Statistics 2022-01-03 Guojun Gan , Emiliano A. Valdez

The informational context is regularly questioned in a transitional economic regime like the one implemented in China or Vietnam. This article investigates this issue and the predictive power of fundamental analysis in such context and more…

General Finance · Quantitative Finance 2019-10-16 Lijuan Ma , Marcel Ausloos , Christophe Schinckus , H. L. Felicia Chong

One important problem in microbiome analysis is to identify the bacterial taxa that are associated with a response, where the microbiome data are summarized as the composition of the bacterial taxa at different taxonomic levels. This paper…

Applications · Statistics 2016-03-04 Pixu Shi , Anru Zhang , Hongzhe Li

Functional data analysis, which handles data arising from curves, surfaces, volumes, manifolds and beyond in a variety of scientific fields, is a rapidly developing area in modern statistics and data science in the recent decades. The…

Methodology · Statistics 2020-08-21 Xiaoke Zhang , Wu Xue , Qiyue Wang

Regression with compositional response or covariates, or even regression between parts of a composition, is frequently employed in social sciences. Among other possible applications, it may help to reveal interesting features in time…

Statistics Theory · Mathematics 2016-09-27 Ivo Muller , Karel Hron , Eva Fiserova , Jan Smahaj , Panajotis Cakirpaloglu , Jana Vancakova

Nowadays, financial data analysis is becoming increasingly important in the business market. As companies collect more and more data from daily operations, they expect to extract useful knowledge from existing collected data to help make…

Artificial Intelligence · Computer Science 2016-09-13 Fan Cai , Nhien-An Le-Khac , M-T. Kechadi
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