mosaicperm.factor.ols_residuals

mosaicperm.factor.ols_residuals(outcomes: array, exposures: array)[source]

Computes residuals via cross-sectional OLS.

Parameters:
outcomesnp.array

(n_obs, n_subjects) array of outcomes, e.g., asset returns. outcomes may contain nans to indicate missing values.

exposuresnp.array

(n_obs, n_subjects, n_factors) array of factor exposures OR (n_subjects, n_factors) array of factor exposures if the exposures do not change with time.

Returns:
residualsnp.array

(n_obs, n_subjects) array of residuals from OLS cross-sectional regressions.