The Importance of Hierarchical Clustering in Quant Modeling

When would it make sense to group similar factors together into one factor in your model? For example, you might have some factors that all measure some variation of sentiment. The sure answer is yes That's something that might make a lot of sense to do and A few points that I wanted to bring up are so there's this notion of hierarchical clustering which is a common technique now in statistics and data science. At the end of the day like I don't think it necessarily changes what exposure Or or necessarily the behavior of your of your portfolio.