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The paper studies problem of continuous time optimal portfolio selection for a incom- plete market diffusion model. It is shown that, under some mild conditions, near optimal strategies for investors with different performance criteria can…

Portfolio Management · Quantitative Finance 2014-04-15 Nikolai Dokuchaev

We present a new probabilistic modelling framework based on the recent notion of normal factor graph (NFG). We show that the proposed NFG models and their transformations unify some existing models such as factor graphs, convolutional…

Information Theory · Computer Science 2012-09-17 Ali Al-Bashabsheh , Yongyi Mao

We propose a family of multivariate Gaussian process models for correlated outputs, based on assuming that the likelihood function takes the generic form of the multivariate exponential family distribution (EFD). We denote this model as a…

Machine Learning · Statistics 2013-11-05 Antoni B. Chan

One-parameter generalizations of the logarithmic and exponential functions have been obtained as well as algebraic operators to retrieve extensivity. Analytical expressions for the successive applications of the sum or product operators on…

We consider a general class of diffusion-based models and show that, even in the absence of an Equivalent Local Martingale Measure, the financial market may still be viable, in the sense that strong forms of arbitrage are excluded and…

Portfolio Management · Quantitative Finance 2013-02-12 Claudio Fontana , Wolfgang J. Runggaldier

Stock market returns are typically analyzed using standard regression, yet they reside on irregular domains which is a natural scenario for graph signal processing. To this end, we consider a market graph as an intuitive way to represent…

Portfolio Management · Quantitative Finance 2021-06-08 Alvaro Arroyo , Bruno Scalzo , Ljubisa Stankovic , Danilo P. Mandic

Recognizing the successes of treed Gaussian process (TGP) models as an interpretable and thrifty model for nonparametric regression, we seek to extend the model to classification. Both treed models and Gaussian processes (GPs) have,…

Methodology · Statistics 2010-09-28 Tamara Broderick , Robert B. Gramacy

This paper considers the constrained portfolio optimization in a generalized life-cycle model. The individual with a stochastic income manages a portfolio consisting of stocks, a bond, and life insurance to maximize his or her consumption…

Portfolio Management · Quantitative Finance 2024-10-29 Wenyuan Li , Pengyu Wei

Gaussian processes (GPs) are widely-used tools in spatial statistics and machine learning and the formulae for the mean function and covariance kernel of a GP $T u$ that is the image of another GP $u$ under a linear transformation $T$…

Probability · Mathematics 2024-10-08 Tadashi Matsumoto , T. J. Sullivan

We study a continuous-time financial market with continuous price processes under model uncertainty, modeled via a family $\mathcal{P}$ of possible physical measures. A robust notion ${\rm NA}_{1}(\mathcal{P})$ of no-arbitrage of the first…

Mathematical Finance · Quantitative Finance 2015-07-21 Sara Biagini , Bruno Bouchard , Constantinos Kardaras , Marcel Nutz

Surrogate modeling based on Gaussian processes (GPs) has received increasing attention in the analysis of complex problems in science and engineering. Despite extensive studies on GP modeling, the developments for functional inputs are…

Methodology · Statistics 2023-01-04 Chih-Li Sung , Wenjia Wang , Fioralba Cakoni , Isaac Harris , Ying Hung

Fine-Grained Domain Generalization (FGDG) presents greater challenges than conventional domain generalization due to the subtle inter-class differences and relatively pronounced intra-class variations inherent in fine-grained recognition…

Computer Vision and Pattern Recognition · Computer Science 2026-01-07 Zhen Wang , Jiaojiao Zhao , Qilong Wang , Yongfeng Dong , Wenlong Yu

We provide a general mathematical framework based on the theory of graphical models to study admixture graphs. Admixture graphs are used to describe the ancestral relationships between past and present populations, allowing for population…

Populations and Evolution · Quantitative Biology 2018-12-31 Samuele Soraggi , Carsten Wiuf

Predictable forward performance processes (PFPPs) are stochastic optimal control frameworks for an agent who controls a randomly evolving system but can only prescribe the system dynamics for a short period ahead. This is a common scenario…

Mathematical Finance · Quantitative Finance 2024-03-26 Bahman Angoshtari , Shida Duan

Financial structures such as securitisations, insurance contracts, and other hierarchical claims systems can be interpreted as deterministic allocation mechanisms acting on stochastic inflow processes. This paper develops a general…

Computational Finance · Quantitative Finance 2026-02-17 Antonio Scala

Graphical functions are single-valued complex functions which arise from Feynman amplitudes. We study their properties and use their connection to multiple polylogarithms to calculate Feynman periods. For the zig-zag and two more families…

Number Theory · Mathematics 2014-11-12 Oliver Schnetz

This paper investigates optimal portfolio strategies in a financial market where the drift of the stock returns is driven by an unobserved Gaussian mean reverting process. Information on this process is obtained from observing stock returns…

Portfolio Management · Quantitative Finance 2016-03-15 Abdelali Gabih , Hakam Kondakji , Jörn Sass , Ralf Wunderlich

Graphical models have been widely used in applications ranging from medical expert systems to natural language processing. Their popularity partly arises since they are intuitive representations of complex inter-dependencies among variables…

Artificial Intelligence · Computer Science 2020-07-31 Roland R. Ramsahai

The idea of generating integrals analogous to generating functions is first introduced in this paper. A new proof of the well-known Finite Harmonic Series Theorem in Analysis and Analytical Number Theory is then obtained by the method of…

Classical Analysis and ODEs · Mathematics 2007-05-23 S. C. Woon

Gambles are random variables that model possible changes in monetary wealth. Classic decision theory transforms money into utility through a utility function and defines the value of a gamble as the expectation value of utility changes.…

Economics · Quantitative Finance 2016-02-03 Ole Peters , Murray Gell-Mann