Principal component analysis on a correlation matrix
ID: principal-component-analysis-on-a-correlation-matrix
For positive marginal variances, standardizing each variable to variance one converts covariance-based PCA on into correlation-based PCA on . This makes the analysis insensitive to the original measurement units but changes the optimization criterion. Standardization gives small-variance variables the same marginal weight as large-variance variables; it is a modelling choice, not an automatic improvement.
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