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Cosmological parameter inference from galaxy clustering relies critically on accurate estimates of the covariance and precision matrices. These are often obtained from a limited number of mock catalogs, introducing noise and bias in the…

Cosmology and Nongalactic Astrophysics · Physics 2026-04-16 Antonio Farina , Massimo Guidi , Alfonso Veropalumbo , Claudio Guida

This paper introduces a neural network-based nonlinear shrinkage estimator of covariance matrices for the purpose of minimum variance portfolio optimization. It is a hybrid approach that integrates statistical estimation with machine…

Machine Learning · Computer Science 2026-01-23 Liusha Yang , Siqi Zhao , Shuqi Chai

The problem of estimating sparse eigenvectors of a symmetric matrix attracts a lot of attention in many applications, especially those with high dimensional data set. While classical eigenvectors can be obtained as the solution of a…

Machine Learning · Statistics 2016-11-03 Konstantinos Benidis , Ying Sun , Prabhu Babu , Daniel P. Palomar

Many statistical applications require an estimate of a covariance matrix and/or its inverse. When the matrix dimension is large compared to the sample size, which happens frequently, the sample covariance matrix is known to perform poorly…

Statistics Theory · Mathematics 2012-07-24 Olivier Ledoit , Michael Wolf

Factor-based Structural Equation Modeling (SEM) relies on likelihood-based estimation assuming a nonsingular sample covariance matrix, which breaks down in small-sample settings with $p>n$. To address this, we propose a novel estimation…

Machine Learning · Computer Science 2026-04-21 Hiroki Hasegawa , Aoba Tamura , Yukihiko Okada

Covariance estimation for matrix-valued data has received an increasing interest in applications. Unlike previous works that rely heavily on matrix normal distribution assumption and the requirement of fixed matrix size, we propose a class…

Methodology · Statistics 2022-04-20 Yichi Zhang , Weining Shen , Dehan Kong

We address the curse of dimensionality in dynamic covariance estimation by modeling the underlying co-volatility dynamics of a time series vector through latent time-varying stochastic factors. The use of a global-local shrinkage prior for…

Methodology · Statistics 2019-08-07 Gregor Kastner

We show that in a common high-dimensional covariance model, the choice of loss function has a profound effect on optimal estimation. In an asymptotic framework based on the Spiked Covariance model and use of orthogonally invariant…

Statistics Theory · Mathematics 2017-06-06 David L. Donoho , Matan Gavish , Iain M. Johnstone

The determination of the covariance matrix and its inverse, the precision matrix, is critical in the statistical analysis of cosmological measurements. The covariance matrix is typically estimated with a limited number of simulations at…

Cosmology and Nongalactic Astrophysics · Physics 2025-01-22 Marnix J. Looijmans , Mike Shengbo Wang , Florian Beutler

Linear shrinkage estimators of a covariance matrix --- defined by a weighted average of the sample covariance matrix and a pre-specified shrinkage target matrix --- are popular when analysing high-throughput molecular data. However, their…

Methodology · Statistics 2018-09-24 Harry Gray , Gwenaël G. R. Leday , Catalina A. Vallejos , Sylvia Richardson

In this paper, we obtain a property of the expectation of the inverse of compound Wishart matrices which results from their orthogonal invariance. Using this property as well as results from random matrix theory (RMT), we derive the…

Risk Management · Quantitative Finance 2013-06-25 Benoît Collins , David McDonald , Nadia Saad

High dimensionality comparable to sample size is common in many statistical problems. We examine covariance matrix estimation in the asymptotic framework that the dimensionality $p$ tends to $\infty$ as the sample size $n$ increases.…

Statistics Theory · Mathematics 2007-06-13 Jianqing Fan , Yingying Fan , Jinchi Lv

This paper introduces a subspace method for the estimation of an array covariance matrix. It is shown that when the received signals are uncorrelated, the true array covariance matrices lie in a specific subspace whose dimension is…

Numerical Analysis · Computer Science 2014-11-04 Mostafa Rahmani , George Atia

This chapter reviews methods for linear shrinkage of the sample covariance matrix (SCM) and matrices (SCM-s) under elliptical distributions in single and multiple populations settings, respectively. In the single sample setting a popular…

Methodology · Statistics 2023-08-10 Esa Ollila

The class of algorithms called Hessian Estimation Evolution Strategies (HE-ESs) update the covariance matrix of their sampling distribution by directly estimating the curvature of the objective function. The approach is practically…

Optimization and Control · Mathematics 2021-06-16 Tobias Glasmachers , Oswin Krause

We study the consistency of sample mean-variance portfolios of arbitrarily high dimension that are based on Bayesian or shrinkage estimation of the input parameters as well as weighted sampling. In an asymptotic setting where the number of…

Portfolio Management · Quantitative Finance 2015-05-30 Francisco Rubio , Xavier Mestre , Daniel P. Palomar

The variance--covariance matrix plays a central role in the inferential theories of high-dimensional factor models in finance and economics. Popular regularization methods of directly exploiting sparsity are not directly applicable to many…

Methodology · Statistics 2012-03-15 Jianqing Fan , Yuan Liao , Martina Mincheva

High dimensional covariance estimation and graphical models is a contemporary topic in statistics and machine learning having widespread applications. An important line of research in this regard is to shrink the extreme spectrum of the…

Methodology · Statistics 2016-06-28 Sang-Yun Oh , Bala Rajaratnam , Joong-Ho Won

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

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