PCA meets RG (Q2401447)

There is an investigation on methods to find a lower-dimensional description for systems with many degrees of freedom. Actually this means to consider somehow a linear projection on a lower-dimensional space of higher-dimensional data. In this paper, the connection between two known concepts, the principal component analysis method (PAC), and the renormalization group method (RG), is largely discussed. After a theoretical description of the methods, the analysis of data in two practical examples from neural networks and financial systems are performed.