This note discusses some aspects of the paper by Hu and Tsay (2014), "Principal Volatility Component Analysis". The key issues are considered, and are also related to existing conditional covariance and correlation models. Some caveats are given about multivariate models of time-varying...

This paper reviews various treatments of non-metric variables in Partial Least Squares (PLS) and Principal Component Analysis (PCA) algorithms. The performance of different treatments is compared in the extensive simulation study under several typical data generating processes and...

Principal Component Analysis (PCA) is a common procedure for the analysis of financial market data, such as implied volatility smiles or interest rate curves. Recently, Pelsser and Lord [11] raised the question whether PCA results may not be 'facts but artefacts'. We extend this line of research...

Since the second half of the nineties the euro area has been subject to a considerable accumulation of temporary and idiosyncratic price shocks. Core inflation indicators for the euro area are thus of utmost interest. Based on euro area-wide data core inflation in this paper is analyzed by means...

Principal Component Analysis (PCA) is a common procedure for the analysis of financial market data, such as implied volatility smiles or interest rate curves. Recently, Pelsser and Lord [11] raised the question whether PCA results may not be 'facts but artefacts'. We extend this line of research...

Dimensionality reduction in large-scale image research plays an important role for their performance in different applications. In this paper, we explore Principal Component Analysis (PCA) as a dimensionality reduction method. For this purpose, first, the Scale Invariant Feature Transform (SIFT)...

The features extraction is the main step in a Brain-Computer Interface (BCI) design. Its goal is to create features easy to be interpreted in order to produce the most accurate control commands. For this end, these features must include all the original signal characteristics. The generated...

This article proposes an effective method for real-time banknote recognition, using digital image processing. The new Series 7 New Zealand banknotes are considered, as a case study, for intelligent real-time recognition. The composite feature of a banknote containing the elements of color and...