I am a 3rd year Undergrad who is looking at the effect of macroeconomic variables on forecasting profitability.
To do so, I have taken a set of 129 variables and conducted a PCA using exploratory.
Following the analysis, The weights given to each of the variables are very small (<0.1), and the principal components are highly correlated with one another. Is there any way I can remedy this?
Thanks in advance!
(I apologise if this is a silly question btw)