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We explore a decomposition in which returns on a large class of portfolios relative to the market depend on a smooth non-negative drift and changes in the asset price distribution. This decomposition is obtained using general continuous…

Portfolio Management · Quantitative Finance 2018-10-31 Ricardo T. Fernholz , Caleb Stroup

Adaptive Fourier decomposition (AFD, precisely 1-D AFD or Core-AFD) was originated for the goal of positive frequency representations of signals. It achieved the goal and at the same time offered fast decompositions of signals. There then…

Numerical Analysis · Mathematics 2018-05-09 You Gao , Min Ku , Tao Qian

A new deconvolution algorithm based on orthogonal projections onto the epigraph set of a convex cost function is presented. In this algorithm, the dimension of the minimization problem is lifted by one and sets corresponding to the cost…

Data Structures and Algorithms · Computer Science 2014-02-25 Mohammad Tofighi , Alican Bozkurt , A. Enis Cetin

We propose a numerical algorithm for the reconstruction of a piecewise constant leading coefficient of an elliptic problem. The inverse problem is reduced to a shape reconstruction problem. The proposed algorithm is based on the…

Numerical Analysis · Mathematics 2020-09-02 Aleksandr E. Kolesov , Petr N. Vabishchevich

Online conformal prediction (OCP) seeks prediction intervals that achieve long-run $1-\alpha$ coverage for arbitrary (possibly adversarial) data streams, while remaining as informative as possible. Existing OCP methods often require manual…

Machine Learning · Statistics 2026-02-04 Tuo Liu , Edgar Dobriban , Francesco Orabona

Despite increasing accessibility to function data, effective methods for flexibly estimating underlying functional trend are still scarce. We thereby develop functional version of trend filtering for estimating trend of functional data…

Methodology · Statistics 2022-02-22 Tomoya Wakayama , Shonosuke Sugasawa

This paper develops an algorithm to reconstruct large weighted firm-to-firm networks using information about the size of the firms and sectoral input-output flows. Our algorithm is based on a four-step procedure. We first generate a matrix…

General Economics · Economics 2025-12-03 Ashwin Bhattathiripad , Vipin P Veetil

Online portfolio selection is an integral componentof wealth management. The fundamental undertaking is tomaximise returns while minimising risk given investor con-straints. We aim to examine and improve modern strategiesto generate higher…

Computational Engineering, Finance, and Science · Computer Science 2021-09-29 Matthew Kruger , Terence L. van Zyl , Andrew Paskaramoorthy

Fully observable non-deterministic (FOND) planning is becoming increasingly important as an approach for computing proper policies in probabilistic planning, extended temporal plans in LTL planning, and general plans in generalized…

Artificial Intelligence · Computer Science 2018-06-26 Tomas Geffner , Hector Geffner

This paper investigates asset allocation problems when returns are predictable. We introduce a market-timing Bayesian hierarchical (BH) approach that adopts heterogeneous time-varying coefficients driven by lagged fundamental…

Econometrics · Economics 2020-09-18 Guanhao Feng , Jingyu He

This study develops an inverse portfolio optimization framework for recovering latent investor preferences including risk aversion, transaction cost sensitivity, and ESG orientation from observed portfolio allocations. Using controlled…

General Finance · Quantitative Finance 2025-10-14 Jinho Cha , Long Pham , Thi Le Hoa Vo , Jaeyoung Cho , Jaejin Lee

A characteristic feature of functional data is the presence of phase variability in addition to amplitude variability. Existing functional regression methods do not handle time variability in an explicit and efficient way. In this paper we…

Methodology · Statistics 2014-04-22 Daniel Gervini

We present an algorithm producing a dynamic non-self-financing hedging strategy in an incomplete market corresponding to investor-relevant risk criterion. The optimization is a two stage process that first determines admissible model…

Statistics Theory · Mathematics 2008-12-10 N. Josephy , L. Kimball , A. Nagaev , M. Pasniewski , V. Steblovskaya

Fund models are statistical descriptions of markets where all asset returns are spanned by the returns of a lower-dimensional collection of funds, modulo orthogonal noise. Equivalently, they may be characterised as models where the global…

Portfolio Management · Quantitative Finance 2022-08-05 Constantinos Kardaras , Hyeng Keun Koo , Johannes Ruf

Finite mixtures of regression models offer a flexible framework for investigating heterogeneity in data with functional dependencies. These models can be conveniently used for unsupervised learning on data with clear regression…

Methodology · Statistics 2013-12-03 Utkarsh J. Dang , Paul D. McNicholas

In this paper, we propose a numerical method of computing an integral whose integrand is a slowly decaying oscillatory function. In the proposed method, we consider a complex analytic function in the upper-half complex plane, which is…

Numerical Analysis · Mathematics 2019-09-12 Hidenori Ogata

In a previous paper [1] it was discussed the viability of functional analysis using as a basis a couple of generic functions, and hence vectorial decomposition. Here we complete the paradigm exploiting one of the analysis methodologies…

Numerical Analysis · Computer Science 2013-11-26 Sossio Vergara

We consider the multi-period portfolio optimization problem with a single asset that can be held long or short. Due to the presence of transaction costs, maximizing the immediate reward at each period may prove detrimental, as frequent…

Optimization and Control · Mathematics 2025-02-07 Chutian Ma , Paul Smith

Risk budgeting is a portfolio strategy where each asset contributes a prespecified amount to the aggregate risk of the portfolio. In this work, we propose an efficient numerical framework that uses only simulations of returns for estimating…

Portfolio Management · Quantitative Finance 2023-02-03 Bernardo Freitas Paulo da Costa , Silvana M. Pesenti , Rodrigo S. Targino

In the present paper, we propose and analyze a novel method for estimating a univariate regression function of bounded variation. The underpinning idea is to combine two classical tools in nonparametric statistics, namely isotonic…

Statistics Theory · Mathematics 2012-11-20 Arnaud Guyader , Nicolas Jégou , Alexander B. Németh , Sándor Z. Németh