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graphical_lasso

graphical lasso for financial data Repo to illustrate glasso application to identify the portfolio of correlated stocks.

How to get the pairs:

Simply execute the jupyter notebook

Results:

Precision Matrix across markets:

Trading Pairs:

Based on article from Jason X. Yang. I have added the entire data pipeline and preprocession along with some modifications so that you can simply execute the jupyter notebook and obtain the results in one single click.