Linear Shrinkage of Sample Covariance Matrix or Matrices Under Elliptical Distributions: A Review

dc.contributorAalto-yliopistofi
dc.contributorAalto Universityen
dc.contributor.authorOllila, Esa
dc.contributor.departmentDepartment of Information and Communications Engineeringen
dc.contributor.groupauthorEsa Ollila Groupen
dc.date.accessioned2025-05-14T08:37:30Z
dc.date.available2025-05-14T08:37:30Z
dc.date.embargoinfo:eu-repo/date/embargoEnd/2025-01-01
dc.date.issued2024-01-01
dc.descriptionPublisher Copyright: © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.
dc.description.abstractThis 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 linear shrinkage estimator is defined as a linear combination of the sample covariance matrix (SCM) with a scaled identity matrix. The optimal shrinkage coefficients minimizing the mean-squared error (MSE) under elliptical sampling are shown to be functions of few key parameters only, such as elliptical kurtosis and sphericity parameter. Similar results and estimators are derived for multiple population settings and applications of the studied shrinkage estimators are illustrated in portfolio optimization.en
dc.description.versionPeer revieweden
dc.format.extent31
dc.format.mimetypeapplication/pdf
dc.identifier.citationOllila, E 2024, Linear Shrinkage of Sample Covariance Matrix or Matrices Under Elliptical Distributions : A Review. in Elliptically Symmetric Distributions in Signal Processing and Machine Learning. Springer, pp. 79-109. https://doi.org/10.1007/978-3-031-52116-4_3en
dc.identifier.doi10.1007/978-3-031-52116-4_3
dc.identifier.isbn978-3-031-52115-7
dc.identifier.isbn978-3-031-52116-4
dc.identifier.otherPURE UUID: 645cc7d8-0d68-4991-8058-f37ff8b448d6
dc.identifier.otherPURE ITEMURL: https://research.aalto.fi/en/publications/645cc7d8-0d68-4991-8058-f37ff8b448d6
dc.identifier.otherPURE FILEURL: https://research.aalto.fi/files/181419836/Linear_Shrinkage_of_Sample_Covariance_Matrix_or_Matrices_Under_Elliptical_Distributions.pdf
dc.identifier.urihttps://aaltodoc.aalto.fi/handle/123456789/135372
dc.identifier.urnURN:NBN:fi:aalto-202505143646
dc.language.isoenen
dc.relation.ispartofElliptically Symmetric Distributions in Signal Processing and Machine Learningen
dc.relation.ispartofpp. 79-109en
dc.rightsopenAccessen
dc.titleLinear Shrinkage of Sample Covariance Matrix or Matrices Under Elliptical Distributions: A Reviewen
dc.typeA3 Kirjan tai muun kokoomateoksen osafi
dc.type.versionacceptedVersion

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