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We derive new results related to the portfolio choice problem for power and logarithmic utilities. Assuming that the portfolio returns follow an approximate log-normal distribution, the closed-form expressions of the optimal portfolio…

Portfolio Management · Quantitative Finance 2023-04-19 Taras Bodnar , Dmytro Ivasiuk , Nestor Parolya , Wofgang Schmid

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

Portfolio selection involves optimizing simultaneously financial goals such as risk, return and Sharpe ratio. This problem holds considerable importance in economics. However, little has been studied related to the nonconvexity of the…

Optimization and Control · Mathematics 2023-05-02 Vuong D. Nguyen , Nguyen Kim Duyen , Nguyen Minh Hai , Bui Khuong Duy

In noisy evolutionary optimization, sampling is a common strategy to deal with noise. By the sampling strategy, the fitness of a solution is evaluated multiple times (called \emph{sample size}) independently, and its true fitness is then…

Neural and Evolutionary Computing · Computer Science 2022-11-29 Chao Qian , Chao Bian , Yang Yu , Ke Tang , Xin Yao

We consider some computationally efficient and provably correct algorithms with near-optimal sample-complexity for the problem of noisy non-adaptive group testing. Group testing involves grouping arbitrary subsets of items into pools. Each…

Information Theory · Computer Science 2016-11-18 Chun Lam Chan , Sidharth Jaggi , Venkatesh Saligrama , Samar Agnihotri

Many multiobjective real-world problems, such as facility location and bus routing, become more complex when optimizing the priorities of multiple stakeholders. These are often modeled using infinite classes of objectives, e.g., $L_p$ norms…

Data Structures and Algorithms · Computer Science 2025-10-24 Swati Gupta , Jai Moondra , Mohit Singh

The minimization of convex functions which are only available through partial and noisy information is a key methodological problem in many disciplines. In this paper we consider convex optimization with noisy zero-th order information,…

Machine Learning · Computer Science 2016-05-27 Francis Bach , Vianney Perchet

When a computational task tolerates a relaxation of its specification or when an algorithm tolerates the effects of noise in its execution, hardware, programming languages, and system software can trade deviations from correct behavior for…

We present a framework for modeling asset and portfolio dynamics, incorporating this information into portfolio optimization. For this framework, we introduce the Commonality Principle, providing a solution for the optimal selection of…

Portfolio Management · Quantitative Finance 2023-09-07 Alejandro Rodriguez Dominguez

Bayesian optimization is a sample-efficient method for black-box global optimization. How- ever, the performance of a Bayesian optimization method very much depends on its exploration strategy, i.e. the choice of acquisition function, and…

Machine Learning · Statistics 2015-03-06 Bobak Shahriari , Ziyu Wang , Matthew W. Hoffman , Alexandre Bouchard-Côté , Nando de Freitas

This paper investigates the experimental performance of a discrete portfolio optimization problem relevant to the financial services industry on the gate-model of quantum computing. We implement and evaluate a portfolio rebalancing use case…

Quantum Physics · Physics 2019-11-14 Mark Hodson , Brendan Ruck , Hugh Ong , David Garvin , Stefan Dulman

We revisit random search for stochastic optimization, where only noisy function evaluations are available. We show that the method works under weaker smoothness assumptions than previously considered, and that stronger assumptions enable…

Optimization and Control · Mathematics 2025-12-19 El Mahdi Chayti , Taha El Bakkali El Kadi , Omar Saadi , Martin Jaggi

In this paper we present an evolutionary optimization approach to solve the risk parity portfolio selection problem. While there exist convex optimization approaches to solve this problem when long-only portfolios are considered, the…

Portfolio Management · Quantitative Finance 2015-04-14 Ronald Hochreiter

Portfolio optimization involves selecting asset weights to minimize a risk-reward objective, such as the portfolio variance in the classical minimum-variance framework. Sparse portfolio selection extends this by imposing a cardinality…

Machine Learning · Statistics 2025-05-16 Sarat Moka , Matias Quiroz , Vali Asimit , Samuel Muller

Portfolio Optimization (PO) is a financial problem aiming to maximize the net gains while minimizing the risks in a given investment portfolio. The novelty of Quantum algorithms lies in their acclaimed potential and capability to solve…

Quantum Physics · Physics 2024-07-30 Kamila Zaman , Alberto Marchisio , Muhammad Kashif , Muhammad Shafique

With the introduction of machine learning in high-stakes decision making, ensuring algorithmic fairness has become an increasingly important problem to solve. In response to this, many mathematical definitions of fairness have been…

Machine Learning · Computer Science 2024-06-04 Edward Small , Wei Shao , Zeliang Zhang , Peihan Liu , Jeffrey Chan , Kacper Sokol , Flora Salim

Iterative algorithms aimed at solving some problems are discussed. For certain problems, such as finding a common point in the intersection of a finite number of convex sets, there often exist iterative algorithms that impose very little…

Optimization and Control · Mathematics 2010-09-28 Y. Censor , R. Davidi , G. T. Herman

Traditional approaches to portfolio optimization, often rooted in Modern Portfolio Theory and solved via quadratic programming or evolutionary algorithms, struggle with scalability or flexibility, especially in scenarios involving complex…

Computational Engineering, Finance, and Science · Computer Science 2025-07-23 Christian Oliva , Pedro R. Ventura , Luis F. Lago-Fernández

Recent work on Bayesian optimization has shown its effectiveness in global optimization of difficult black-box objective functions. Many real-world optimization problems of interest also have constraints which are unknown a priori. In this…

Machine Learning · Statistics 2014-03-25 Michael A. Gelbart , Jasper Snoek , Ryan P. Adams

We introduce the smoothed analysis of algorithms, which is a hybrid of the worst-case and average-case analysis of algorithms. In smoothed analysis, we measure the maximum over inputs of the expected performance of an algorithm under small…

Data Structures and Algorithms · Computer Science 2009-09-25 Daniel A. Spielman , Shang-Hua Teng