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We employ model predictive control for a multi-period portfolio optimization problem. In addition to the mean-variance objective, we construct a portfolio whose allocation is given by model predictive control with a risk-parity objective,…

Portfolio Management · Quantitative Finance 2021-03-22 Xiaoyue Li , A. Sinem Uysal , John M. Mulvey

We study the feasibility and noise sensitivity of portfolio optimization under some downside risk measures (Value-at-Risk, Expected Shortfall, and semivariance) when they are estimated by fitting a parametric distribution on a finite sample…

Risk Management · Quantitative Finance 2008-12-10 Istvan Varga-Haszonits , Imre Kondor

Calibrating blackbox machine learning models to achieve risk control is crucial to ensure reliable decision-making. A rich line of literature has been studying how to calibrate a model so that its predictions satisfy explicit finite-sample…

Machine Learning · Statistics 2025-06-02 Victor Li , Baiting Chen , Yuzhen Mao , Qi Lei , Zhun Deng

In this work, we explore the possibility of utilizing transfer learning techniques to address the financial portfolio optimization problem. We introduce a novel concept called "transfer risk", within the optimization framework of transfer…

Portfolio Management · Quantitative Finance 2023-07-26 Haoyang Cao , Haotian Gu , Xin Guo , Mathieu Rosenbaum

We address the statistical estimation of composite functionals which may be nonlinear in the probability measure. Our study is motivated by the need to estimate coherent measures of risk, which become increasingly popular in finance,…

Statistics Theory · Mathematics 2015-04-13 Darinka Dentcheva , Spiridon Penev , Andrzej Ruszczynski

In this paper, we consider the problem of optimization of a portfolio consisting of securities. An investor with an initial capital, is interested in constructing a portfolio of securities. If the prices of securities change, the investor…

Portfolio Management · Quantitative Finance 2017-12-05 Oleg Malafeyev , Achal Awasthi

In numerous applications across all science and engineering areas, there are optimization problems where both the objective function and the constraints have no closed-form expression or are too complex to be managed analytically, that they…

Optimization and Control · Mathematics 2022-02-24 Lorenzo Sabug , Fredy Ruiz , Lorenzo Fagiano

Adjustable hyperparameters of machine learning models typically impact various key trade-offs such as accuracy, fairness, robustness, or inference cost. Our goal in this paper is to find a configuration that adheres to user-specified limits…

Machine Learning · Computer Science 2023-12-05 Bracha Laufer-Goldshtein , Adam Fisch , Regina Barzilay , Tommi Jaakkola

Optimal portfolio allocation is often formulated as a constrained risk problem, where one aims to minimize a risk measure subject to some performance constraints. This paper presents new Bayesian Optimization algorithms for such constrained…

Portfolio Management · Quantitative Finance 2025-03-25 Robert Millar , Jinglai Li

We investigate statistical properties of the optimal value of the Sample Average Approximation of stochastic programs, continuing the study in Kr\"atschmer (2023). Central Limit Theorem type results are derived for the optimal value. As a…

Optimization and Control · Mathematics 2023-12-12 Volker Krätschmer

The distributed optimization problem is set up in a collection of nodes interconnected via a communication network. The goal is to find the minimizer of a global objective function formed by the addition of partial functions locally known…

Optimization and Control · Mathematics 2022-06-07 Damián Marelli , Yong Xu , Minyue Fu , Zenghong Huang

A framework is introduced for sequentially solving convex stochastic minimization problems, where the objective functions change slowly, in the sense that the distance between successive minimizers is bounded. The minimization problems are…

Optimization and Control · Mathematics 2018-03-12 Craig Wilson , Venugopal Veeravalli , Angelia Nedich

We study a general scalarization approach via utility functions in multi-objective optimization. It consists of maximizing utility which is obtained from the objectives' bargaining with regard to a disagreement reference point. The…

Optimization and Control · Mathematics 2024-01-26 Lorenzo Lampariello , Simone Sagratella , Valerio Giuseppe Sasso , Vladimir Shikhman

For general multi-objective optimization problems, we propose a novel performance metric called domination measure to measure the quality of a solution, which can be intuitively interpreted as the size of the portion of the solution space…

Optimization and Control · Mathematics 2016-12-26 Joshua Q Hale , Helin Zhu , Enlu Zhou

As generative AI systems are increasingly deployed in real-world applications, regulating multiple dimensions of model behavior has become essential. We focus on test-time filtering: a lightweight mechanism for behavior control that…

Machine Learning · Statistics 2026-01-01 Sunay Joshi , Yan Sun , Hamed Hassani , Edgar Dobriban

In planning problems, it is often challenging to fully model the desired specifications. In particular, in human-robot interaction, such difficulty may arise due to human's preferences that are either private or complex to model.…

Robotics · Computer Science 2021-01-01 Mahsa Ghasemi , Evan Scope Crafts , Bo Zhao , Ufuk Topcu

This paper describes valuation-based systems for representing and solving discrete optimization problems. In valuation-based systems, we represent information in an optimization problem using variables, sample spaces of variables, a set of…

Artificial Intelligence · Computer Science 2013-04-05 Prakash P. Shenoy , Glenn Shafer

We study a static portfolio optimization problem with two risk measures: a principle risk measure in the objective function and a secondary risk measure whose value is controlled in the constraints. This problem is of interest when it is…

Portfolio Management · Quantitative Finance 2020-12-14 Çağın Ararat

Production planning must account for uncertainty in a production system, arising from fluctuating demand forecasts. Therefore, this article focuses on the integration of updated customer demand into the rolling horizon planning cycle. We…

Econometrics · Economics 2024-09-27 Manuel Schlenkrich , Wolfgang Seiringer , Klaus Altendorfer , Sophie N. Parragh

We extend Robust Optimization to fractional programming, where both the objective and the constraints contain uncertain parameters. Earlier work did not consider uncertainty in both the objective and the constraints, or did not use Robust…

Optimization and Control · Mathematics 2015-08-21 Bram L. Gorissen
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