The ABC of PCA

Often, the costs associated with implementing advanced statistical models can outweigh the potential benefits. Brett Humphreys shows how to smooth and speed up choppy simulations using principal components analysis

Risk managers face the constant problem of determining when the benefits of new or more advanced statistical techniques outweigh the costs. Benefits of these techniques include greater accuracy in risk measures, faster calculation,or greater model flexibility. On the cost side, the risk manager must consider the calculation time required as well as the complexity of the proposed solution. Unfortunately, as solutions become more complex they become more difficult to explain, and the process

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here