Investigating how systemic risk originates and spreads across the financial system poses an inherently compositional question, i.e., a question concerning the joint distribution of relative risk share across several interdependent contributors. To address this question, we propose a weighted...

In this paper, we apply the Rank-Sparsity Matrix Decomposition to the planted Maximum Quasi-Clique Problem (MQCP). This problem has the planted Maximum Clique Problem (MCP) as a special case. The maximum clique problem is NP-hard. A Quasi-clique or γ-clique is a dense graph with the edge...