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Choosing a set of benchmark problems is often a key component of any empirical evaluation of iterative optimization heuristics. In continuous, single-objective optimization, several sets of problems have become widespread, including the…

Neural and Evolutionary Computing · Computer Science 2023-12-19 Diederick Vermetten , Furong Ye , Thomas Bäck , Carola Doerr

Portfolio optimization plays a central role in finance to obtain optimal portfolio allocations that aim to achieve certain investment goals. Over the years, many works have investigated different variants of portfolio optimization.…

Quantum Physics · Physics 2023-02-01 Debbie Lim , Patrick Rebentrost

Portfolio optimization is an important process in finance that consists in finding the optimal asset allocation that maximizes expected returns while minimizing risk. When assets are allocated in discrete units, this is a combinatorial…

Statistical Mechanics · Physics 2022-10-04 Álvaro Rubio-García , Juan José García-Ripoll , Diego Porras

We present a detailed study of portfolio optimization using different versions of the quantum approximate optimization algorithm (QAOA). For a given list of assets, the portfolio optimization problem is formulated as quadratic binary…

We construct the maximally predictable portfolio (MPP) of stocks using machine learning. Solving for the optimal constrained weights in the multi-asset MPP gives portfolios with a high monthly coefficient of determination, given the sample…

Computational Finance · Quantitative Finance 2023-11-06 Michael Pinelis , David Ruppert

This paper is concerned with a recently developed paradigm for population-based optimization, termed particle filter optimization (PFO). This paradigm is attractive in terms of coherence in theory and easiness in mathematical analysis and…

Machine Learning · Statistics 2018-11-26 Bin Liu , Yaochu Jin

Many robotics problems, from robot motion planning to object manipulation, can be modeled as mixed-integer convex programs (MICPs). However, state-of-the-art algorithms are still unable to solve MICPs for control problems quickly enough for…

Robotics · Computer Science 2021-07-20 A. Cauligi , P. Culbertson , E. Schmerling , M. Schwager , B. Stellato , M. Pavone

One of the problems in quantitative finance that has received the most attention is the portfolio optimization problem. Regarding its solving, this problem has been approached using different techniques, with those related to quantum…

Artificial Intelligence · Computer Science 2023-09-28 Eneko Osaba , Guillaume Gelabert , Esther Villar-Rodriguez , Antón Asla , Izaskun Oregi

With the advent of Web 2.0, various types of data are being produced every day. This has led to the revolution of big data. Huge amount of structured and unstructured data are produced in financial markets. Processing these data could help…

General Finance · Quantitative Finance 2018-11-27 Dhanya Jothimani , Ravi Shankar , Surendra S. Yadav

We present a novel black box optimization algorithm called Hessian Estimation Evolution Strategy. The algorithm updates the covariance matrix of its sampling distribution by directly estimating the curvature of the objective function. This…

Machine Learning · Computer Science 2020-06-11 Tobias Glasmachers , Oswin Krause

We introduce a variational quantum algorithm to solve unconstrained black box binary optimization problems, i.e., problems in which the objective function is given as black box. This is in contrast to the typical setting of quantum…

Mathematical optimization is a powerful tool for structured decision-making across domains such as resource allocation and planning. Formulating optimization models faithful to reality, though, remains a significant bottleneck as it…

Artificial Intelligence · Computer Science 2026-05-27 Eleni Straitouri , Cheol Woo Kim , Milind Tambe

Quantum Portfolios of quantum algorithms encoded on qbits have recently been reported. In this paper a discussion of the continuous variables version of quantum portfolios is presented. A risk neutral valuation model for options dependent…

General Finance · Quantitative Finance 2015-03-14 Fredrick Michael

The majority of standard approaches to financial portfolio optimization (PO) are based on the mean-variance (MV) framework. Given a risk aversion coefficient, the MV procedure yields a single portfolio that represents the optimal trade-off…

Portfolio Management · Quantitative Finance 2024-02-27 Bruno Gašperov , Marko Đurasević , Domagoj Jakobovic

Artificial intelligence is transforming financial investment decision-making frameworks, with deep reinforcement learning demonstrating substantial potential in robo-advisory applications. This paper addresses the limitations of traditional…

Portfolio Management · Quantitative Finance 2025-02-24 Gang Huang , Xiaohua Zhou , Qingyang Song

Portfolio diversification is one of the most effective ways to minimize investment risk. Individuals and fund managers aim to create a portfolio of assets that not only have high returns but are also uncorrelated. This goal can be achieved…

Computational Engineering, Finance, and Science · Computer Science 2021-12-17 Moein Owhadi-Kareshk , Pierre Boulanger

Bayesian optimization (BO) is a popular approach for sample-efficient optimization of black-box objective functions. While BO has been successfully applied to a wide range of scientific applications, traditional approaches to…

Machine Learning · Computer Science 2023-05-04 Natalie Maus , Kaiwen Wu , David Eriksson , Jacob Gardner

We present a quantum algorithm for portfolio optimization. We discuss the market data input, the processing of such data via quantum operations, and the output of financially relevant results. Given quantum access to the historical record…

Quantum Physics · Physics 2018-11-12 Patrick Rebentrost , Seth Lloyd

Recent approaches to training algorithm selectors in the black-box optimisation domain have advocated for the use of training data that is algorithm-centric in order to encapsulate information about how an algorithm performs on an instance,…

Machine Learning · Computer Science 2025-01-22 Quentin Renau , Emma Hart

Portfolio optimization is a primary component of the decision-making process in finance, aiming to tactfully allocate assets to achieve optimal returns while considering various constraints. Herein, we proposed a method that uses the…

Quantum Physics · Physics 2024-12-24 Chansreynich Huot , Kimleang Kea , Tae-Kyung Kim , Youngsun Han