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Lassoed Boosting and Linear Prediction in the Equities Market

Xiao Huang

arXiv 16 Dec 2021 · Econometrics

arXiv:2112.08934 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We consider a two-stage estimation method for linear regression. First, it uses the lasso in Tibshirani (1996) to screen variables and, second, re-estimates the coefficients using the least-squares boosting method in Friedman (2001) on every set of selected variables. Based on the large-scale simulation experiment in Hastie et al. (2020), lassoed boosting performs as well as the relaxed lasso in Meinshausen (2007) and, under certain scenarios, can yield a sparser model. Applied to predicting equity returns, lassoed boosting gives the smallest mean-squared prediction error compared to several other methods.

Citation extraction

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
hastie2017extendedunmatched citation key hastie2017extended1.00084100%
meinshausen2007relaxedunmatched citation key meinshausen2007relaxed1.00054100%
hastie2015slsparcityunmatched citation key hastie2015slsparcity0.8435360%
Greenetal2017stockreturnsunmatched citation key Greenetal2017stockreturns0.8115280%
buhlmann2011highdimenstatsunmatched citation key buhlmann2011highdimenstats0.7948350%
friedman2001gbmunmatched citation key friedman2001gbm0.64422100%
hurvich1998smoothingunmatched citation key hurvich1998smoothing0.64422100%
tibshirani1996lassounmatched citation key tibshirani1996lasso0.64422100%
bertsimas2016bestsubsetunmatched citation key bertsimas2016bestsubset0.58531100%
freundetal2017boostingunmatched citation key freundetal2017boosting0.5112250%

Showing the top 10 of 23 scored citations. 10 of these could not be matched to a bibliography entry, so only the citation key is shown.