Study on the Algorithms of Principal Component Analysis and Related Techniques

With the rapid development of the computer technology, new algorithms are put forward to deal with the large datasets. As a result, the algorithm of principal component analysis becomes one of the most popular algorithms used for this purpose. The algorithm is well-known applied for the dimensionality reduction at the least cost of information loss. This paper starts with the introduction of basic theoretical algorithm of principal component analysis, and then the use and interpretation the algorithms for principal component analysis is elaborated in the applied research of financial performance evaluation. Results confirm the algorithm of principal component analysis is important instrument to obtain the accurate evaluation and prediction.