Fun fact: this is only valid for domains that have a notion of "selfness", i.e. that there is such thing as an "identity matrix" for the quantities. Consider the following square matrix: TSLA APPL GOOG MSFT Alice | 100 5 0 1 Bob | 0 30 100 5 Carol | 2 2 2 2 Dan | 0 0 0 1000 An input vector of stock prices gives an output vector of net worths. However, that is about the only way you can use this matrix. You cannot tra…
For instance, you can normalize along the columns, and build a "recommender system" using matrix factorization.
With that, when a new person comes with a portfolio, the system will output a probability for this new person to acquire the other assets he doesn't have.
It's (the very basic) idea of how Netflix recommends movies.