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Principal Component Error in High-Dimensional Factor Models

This is a Lean formalization of the asymptotic error of the sample principal directions in a latent factor model, in the regime where the cross-section grows and the sample size stays fixed. The results are unconditional: the classical inputs the source cites are proved here rather than assumed.

Main Results

  • The error decomposition: the squared sine of the angle between the j-th sample principal direction and its target converges almost surely to an out-of-subspace error plus an in-subspace rotation error.
  • The out-of-subspace error is estimable: the observable ratio of the average bulk eigenvalue to the j-th dual Gram eigenvalue converges to it almost surely.
  • The rotation error is not estimable: with at least two factors, every value between the out-of-subspace floor and 1 is the limiting error of some admissible factor covariance.

See §Formal Challenge for a formal certificate.

Dependencies

This depends on Mathlib.

Formal Challenge

A formal challenge file certifying that this repository does formalize the results claimed above is located at Challenge/Basic.lean. This file only depends on Mathlib. It contains formal statements of §Main Results with sorry as proof.

This repository can be verified against the formal challenge with the Lean comparator on a Linux machine. First, follow the instructions in https://github.com/leanprover/comparator to install comparator. Then, run the following command:

lake env comparator Comparator/comparator.json

This repository has been locally verified with the comparator.

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