Home > Department of Statistics > Events > abstracts > Adjusting a Correlation Matrix: A Bayesian Approach

 

Adjusting a Correlation Matrix: A Bayesian Approach

When 3.00pm on Thursday 9th December 2010
Where B617, Leverhulme Library, Columbia House
Presentations  
Speaker Philip Yu
From University of Hong Kong 
Abstract

In financial risk management and asset pricing, adjusting a correlation matrix occurs when reflecting an alternative view on correlations among risk factors is required. However, adjusting a correlation matrix is not trivial exercise since arbitrary changes can lead to a negative definite matrix. In this talk, I will introduce a Bayesian approach to adjust a correlation matrix by taking into account the dependence structure among the correlations.

For further information Postgraduate Administrator Ext. 6879
Department of Statistics, Columbia House
Share:Facebook|Twitter|LinkedIn|