Approximate function by localized eigenvectors of density matrix

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Trivia:

Lets have arbitrary function $\rho$ and set of $N$ orthonormal basis-functions $\{\chi_i\}$

We can approximated $\rho$ (i.e. minimize mean square error) by

$\tilde \rho = \sum_i \tilde \rho_i = \sum_i \lambda_i \psi_i^2 $

$\psi_i = \sum_j \mathrm{U}_{ij} \chi_j$

where $\lambda_i$ are eigenvalues and $\mathrm{U}\equiv\{u_i\}$ matrix of eigenvectors to density matrix

$D_{ij} = \int_i{\rho} \chi_i \chi_j $


The problem:

Assume $\rho$ is sum of $m>N$ spatially localized components (aka peaks) $\{\rho_k\}$ ( $\rho = \sum_k \rho_k$ ). I know $\rho_k$ exactly, but I want to compress them using small number of $\psi_i$.

I want to modify procedure above so that not only $\sum_k \rho_k \approx \sum_i \lambda_i \psi_i^2 $ but also $\rho_k \approx \lambda_i \psi_i^2 $ for first few dominant components $\rho_k$.

In other words I want $\psi_i^2$ to be more localized each on single peak.


Illustration

Consider for simplicity 1D example $\rho \in R^1$ with 3 basisfunctions ($N$=3) e.g.

$\{\chi_0,\chi_1,\chi_2\} = \{ 1, \sin(x),\cos(x)\}$

and

$\rho_k = a_k (cos(x-x_k)-1)^2$

where $a_k$ is random amplitude and $x_k$ random shift

decomposition of $\rho$ to $\rho_k$ looks like this. Main peaks can be attributed to individual dominant components $\rho_k$. graphic representation of <span class=$\rho = \sum_k \rho_k$ ">

Approximation of $\rho$ by $\lambda_i \psi_i^2$ looks like this. you can see that $\psi_i^2$ are very delocalized, the first $\psi_0$ tries to capture all peaks at once. I want something where each $\psi_i^2$ approximately corresponds to single peak. Resp $\rho_0 \approx \lambda_0 \psi_0^2$ and $\rho_1 \approx \lambda_1 \psi_1^2$

graphic representation of <span class=$\tilde \rho = \sum_i \tilde \rho_i = \sum_i \lambda_i \psi_i^2 $">


Background and motivation

It comes from computational chemistry. I'm trying to find somehow optimal representation of interaction between an atom $a$ ant $m>4$ other atoms $b$ expressed in $\{s,p_x,p_y,p_y\}$ basiset localized strictly on the atom $a$.