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This paper presents a sophisticated multi-day turnover quantitative trading algorithm that integrates advanced deep learning techniques with comprehensive cross-sectional stock prediction for the Chinese A-share market. Our framework…

Computational Engineering, Finance, and Science · Computer Science 2025-06-10 Yimin Du

There are inefficiencies in financial markets, with unexploited patterns in price, volume, and cross-sectional relationships. While many approaches use large-scale transformers, we take a domain-focused path: feed-forward and recurrent…

Portfolio Management · Quantitative Finance 2025-10-15 Sid Ghatak , Arman Khaledian , Navid Parvini , Nariman Khaledian

A common belief is that leveraged ETFs (LETFs) suffer long-term performance decay due to \emph{volatility drag}. We show that this view is incomplete: LETF performance depends fundamentally on return autocorrelation and return dynamics. In…

Statistical Finance · Quantitative Finance 2025-04-30 Chung-Han Hsieh , Jow-Ran Chang , Hui Hsiang Chen

This paper introduces a hybrid framework for portfolio optimization that fuses Long Short-Term Memory (LSTM) forecasting with a Proximal Policy Optimization (PPO) reinforcement learning strategy. The proposed system leverages the predictive…

Machine Learning · Computer Science 2025-11-25 Jun Kevin , Pujianto Yugopuspito

Minimum-variance portfolio optimizations rely on accurate covariance estimator to obtain optimal portfolios. However, it usually suffers from large error from sample covariance matrix when the sample size $n$ is not significantly larger…

Portfolio Management · Quantitative Finance 2022-04-04 JunTao Duan , Ionel Popescu

We propose a novel portfolio selection approach that manages to ease some of the problems that characterise standard expected utility maximisation. The optimal portfolio is no longer defined as the extremum of a suitably chosen utility…

Condensed Matter · Physics 2009-09-29 P. Rossi , M. Tavoni , F. Cocco , R. Marschinski

On-line portfolio selection has attracted increasing interests in machine learning and AI communities recently. Empirical evidences show that stock's high and low prices are temporary and stock price relatives are likely to follow the mean…

Computational Engineering, Finance, and Science · Computer Science 2012-06-22 Bin Li , Steven C. H. Hoi

We examine strategically incorporating broad stock market leveraged exchange-traded funds (LETFs) into investment portfolios. We demonstrate that easily understandable and implementable strategies can enhance the risk-return profile of a…

Computational Finance · Quantitative Finance 2025-06-25 Peter Forsyth , Pieter van Staden , Yuying Li

We introduce a financial portfolio optimization framework that allows us to automatically select the relevant assets and estimate their weights by relying on a sorted $\ell_1$-Norm penalization, henceforth SLOPE. Our approach is able to…

Portfolio Management · Quantitative Finance 2021-07-30 Philipp J. Kremer , Sangkyun Lee , Malgorzata Bogdan , Sandra Paterlini

Stock trading strategies play a critical role in investment. However, it is challenging to design a profitable strategy in a complex and dynamic stock market. In this paper, we propose an ensemble strategy that employs deep reinforcement…

Trading and Market Microstructure · Quantitative Finance 2025-11-18 Hongyang Yang , Xiao-Yang Liu , Shan Zhong , Anwar Walid

Applying a network analysis to stock return correlations, we study the dynamical properties of the network and how they correlate with the market return, finding meaningful variables that partially capture the complex dynamical processes of…

Statistical Finance · Quantitative Finance 2024-08-22 Ixandra Achitouv

This paper investigates the large sample properties of the variance, weights, and risk of high-dimensional portfolios where the inverse of the covariance matrix of excess asset returns is estimated using a technique called nodewise…

Statistics Theory · Mathematics 2019-10-16 Laurent Callot , Mehmet Caner , Esra Ulasan , A. Özlem Önder

The classical Langevin Monte Carlo method looks for samples from a target distribution by descending the samples along the gradient of the target distribution. The method enjoys a fast convergence rate. However, the numerical cost is…

Machine Learning · Statistics 2025-03-07 Zhiyan Ding , Qin Li

Traditional ETF stock selection methods and reinforcement learning models such as the Asynchronous Advantage Actor-Critic (A3C) often suffer from high-dimensional feature spaces and overfitting when applied to complex financial markets.…

Computational Engineering, Finance, and Science · Computer Science 2025-12-29 Yen-Ku Liu , Yun-Cheng Tsai , Samuel Yen-Chi Chen

In this paper we examine the relation between market returns and volatility measures through machine learning methods in a high-frequency environment. We implement a minute-by-minute rolling window intraday estimation method using two…

Econometrics · Economics 2022-01-03 Iuri H. Ferreira , Marcelo C. Medeiros

Evaluation the prediction of Efficiency index by DVH parameter for SRS treatment plans using Supervised Machine learning and the performance of predictive model algorithms of RapidMiner GO in the parameter prediction are investigated. Dose…

Quantitative Methods · Quantitative Biology 2022-01-20 Hossam Donya , Sheikh Othman , Alexis Dimitriadis

The popularity of modern portfolio theory has decreased among practitioners because of its unfavorable out-of-sample performance. Estimation errors tend to affect the optimal weight calculation noticeably, especially when a large number of…

Portfolio Management · Quantitative Finance 2019-10-28 Sven Husmann , Antoniya Shivarova , Rick Steinert

Accurate prediction of future prices of stocks is a difficult task to perform. Even more challenging is to design an optimized portfolio of stocks with the identification of proper weights of allocation to achieve the optimized values of…

Portfolio Management · Quantitative Finance 2022-03-04 Jaydip Sen , Sidra Mehtab , Abhishek Dutta , Saikat Mondal

This paper introduces StockGPT, an autoregressive ``number'' model trained and tested on 70 million daily U.S.\ stock returns over nearly 100 years. Treating each return series as a sequence of tokens, StockGPT automatically learns the…

Computational Finance · Quantitative Finance 2024-10-24 Dat Mai

This article aims to propose and apply a machine learning method to analyze the direction of returns from Exchange Traded Funds (ETFs) using the historical return data of its components, helping to make investment strategy decisions through…

Computational Finance · Quantitative Finance 2022-06-14 Raphael P. B. Piovezan , Pedro Paulo de Andrade Junior