Rotation of principal components: choice of normalization constraints

Abstract

Following a principal component analysis, it is fairly common practice to rotate some of the components, often using orthogonal rotation. It is a frequent misconception that orthogonal rotation will produce rotated components which are pairwise uncorrelated, and/or whose loadings are orthogonal In fact, it is not possible, using the standard definition of rotation, to preserve both these properties. Which of the two properties is preserved depends on the normalization chosen for the loadings, prior to rotation. The usual ‘default’ normalization leads to rotated components which possess neither property.