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Related papers: Predictable Forward Performance Processes: The Bin…

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We study discrete-time predictable forward processes when trading times do not coincide with performance evaluation times in a binomial tree model for the financial market. The key step in the construction of these processes is to solve a…

Mathematical Finance · Quantitative Finance 2023-12-05 Gechun Liang , Moris S. Strub , Yuwei Wang

We establish existence of Predictable Forward Performance Processes (PFPPs) in complete markets, which has been previously shown only in the binomial setting. Our market model can be a discrete-time or a continuous-time model, and the…

Portfolio Management · Quantitative Finance 2022-09-22 Bahman Angoshtari

We introduce the concept of forward rank-dependent performance processes, extending the original notion to forward criteria that incorporate probability distortions. A fundamental challenge is how to reconcile the time-consistent nature of…

Mathematical Finance · Quantitative Finance 2019-04-04 Xue Dong He , Moris S. Strub , Thaleia Zariphopoulou

We introduce predictable relative forward performance processes (PRFPP) as a new framework for studying portfolio management within a competitive and incomplete market environment. Each agent trades a distinct stock following a binomial…

Mathematical Finance · Quantitative Finance 2026-05-08 Gechun Liang , Moris S. Strub , Yuwei Wang

A characteristic of existing predictive process monitoring techniques is to first construct a predictive model based on past process executions, and then use it to predict the future of new ongoing cases, without the possibility of updating…

Artificial Intelligence · Computer Science 2023-10-26 Chiara Di Francescomarino , Chiara Ghidini , Fabrizio Maria Maggi , Williams Rizzi , Cosimo Damiano Persia

We consider the problem of optimal portfolio selection under forward investment performance criteria in an incomplete market. The dynamics of the prices of the traded assets depend on a pair of stochastic factors, namely, a slow factor…

Mathematical Finance · Quantitative Finance 2015-09-25 Mykhaylo Shkolnikov , Ronnie Sircar , Thaleia Zariphopoulou

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

We consider the forward investment problem in market models where the stock prices are continuous semimartingales adapted to a Brownian filtration. We construct a broad class of forward performance processes with initial conditions of power…

Mathematical Finance · Quantitative Finance 2020-12-22 Levon Avanesyan , Ronnie Sircar

We consider the problem of optimal portfolio selection under forward investment performance criteria in an incomplete market. Given multiple traded assets, the prices of which depend on multiple observable stochastic factors, we construct a…

Mathematical Finance · Quantitative Finance 2018-05-15 Levon Avanesyan , Mykhaylo Shkolnikov , Ronnie Sircar

Existing well investigated Predictive Process Monitoring techniques typically construct a predictive model based on past process executions, and then use it to predict the future of new ongoing cases, without the possibility of updating it…

Machine Learning · Computer Science 2023-10-26 Williams Rizzi , Chiara Di Francescomarino , Chiara Ghidini , Fabrizio Maria Maggi

This article constructs a forward exponential utility in a market with multiple defaultable risks. Using the Jacod-Pham decomposition for random fields, we first characterize forward performance processes in a defaultable market under the…

Mathematical Finance · Quantitative Finance 2026-01-06 Wing Fung Chong , Roxana Dumitrescu , Gechun Liang , Kenneth Tsz Hin Ng

Predictive business process monitoring refers to the act of making predictions about the future state of ongoing cases of a business process, based on their incomplete execution traces and logs of historical (completed) traces. Motivated by…

Artificial Intelligence · Computer Science 2018-10-24 Irene Teinemaa , Marlon Dumas , Marcello La Rosa , Fabrizio Maria Maggi

This paper considers binomial approximation of continuous time stochastic processes. It is shown that, under some mild integrability conditions, a process can be approximated in mean square sense and in other strong metrics by binomial…

Computational Finance · Quantitative Finance 2015-02-09 Nikolai Dokuchaev

When machine learning systems meet real world applications, accuracy is only one of several requirements. In this paper, we assay a complementary perspective originating from the increasing availability of pre-trained and regularly…

Within the context of the binomial model, we analyse sequences of values that are almost-uniform and we discuss a prediction method called the frequent outcome approach, in which the outcome that has occurred the most in the observed trials…

Statistics Theory · Mathematics 2022-09-29 Ben O'Neill

When observations are curves over some natural time interval, the field of functional data analysis comes into play. Functional linear processes account for temporal dependence in the data. The prediction problem for functional linear…

Methodology · Statistics 2023-12-12 Johannes Klepsch , Claudia Klüppelberg

Progressive Hedging is a popular decomposition algorithm for solving multi-stage stochastic optimization problems. A computational bottleneck of this algorithm is that all scenario subproblems have to be solved at each iteration. In this…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-09-28 Gilles Bareilles , Yassine Laguel , Dmitry Grishchenko , Franck Iutzeler , Jérôme Malick

Intermittent demand, where demand occurrences appear sporadically in time, is a common and challenging problem in forecasting. In this paper, we first make the connections between renewal processes, and a collection of current models used…

Machine Learning · Computer Science 2019-11-26 Ali Caner Turkmen , Yuyang Wang , Tim Januschowski

Process monitoring and control requires detection of structural changes in a data stream in real time. This article introduces an efficient sequential Monte Carlo algorithm designed for learning unknown changepoints in continuous time. The…

Applications · Statistics 2015-09-29 Melissa J. M. Turcotte , Nicholas A. Heard

Multi-period portfolio optimization is important for real portfolio management, as it accounts for transaction costs, path-dependent risks, and the intertemporal structure of trading decisions that single-period models cannot capture.…

Computational Engineering, Finance, and Science · Computer Science 2025-12-16 Yuxuan Linghu , Zhiyuan Liu , Qi Deng
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