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A Short Note on a Flexible Cholesky Parameterization of Correlation Matrices

A Short Note on a Flexible Cholesky Parameterization of Correlation Matrices

We propose a Cholesky factor parameterization of correlation matrices that facilitates a priori restrictions on the correlation matrix. It is a smooth and differentiable transform that allows additional boundary constraints on the correlation values. Our particular motivation is random sampling under positivity constraints on the space of correlation matrices using …