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This paper studies a robust portfolio optimization problem under the multi-factor volatility model introduced by Christoffersen et al. (2009). The optimal strategy is derived analytically under the worst-case scenario with or without…

Mathematical Finance · Quantitative Finance 2020-06-16 Ben-Zhang Yang , Xiaoping Lu , Guiyuan Ma , Song-Ping Zhu

A classical portfolio theory deals with finding the optimal proportion in which an agent invests a wealth in a risk-free asset and a probabilistic risky asset. Formulating and solving the problem depend on how the risk is represented and…

Portfolio Management · Quantitative Finance 2019-01-28 Irina Georgescu , Jani Kinnunen

We extend Relative Robust Portfolio Optimisation models to allow portfolios to optimise their distance to a set of benchmarks. Portfolio managers are also given the option of computing regret in a way which is more in line with market…

Portfolio Management · Quantitative Finance 2017-01-12 Gonçalo Simões , Mark McDonald , Stacy Williams , Daniel Fenn , Raphael Hauser

Personalized alignment aims to adapt large language models to heterogeneous user preferences, yet the precise theoretical conditions for its statistical efficiency have not been formally established. This paper characterizes the conditions…

Machine Learning · Computer Science 2026-05-12 Enoch Hyunwook Kang

Process mining is a technique that performs an automatic analysis of business processes from a log of events with the promise of understanding how processes are executed in an organisation. Several models have been proposed to address this…

Artificial Intelligence · Computer Science 2015-03-26 Catarina Moreira

When it comes to stock returns, any form of predictability can bolster risk-adjusted profitability. We develop a collaborative machine learning algorithm that optimizes portfolio weights so that the resulting synthetic security is maximally…

Econometrics · Economics 2024-04-08 Philippe Goulet Coulombe , Maximilian Goebel

Mutual funds aim to generate returns above market averages. While predicting their future portfolio allocations can bring economic advantages, the task remains challenging and largely unexplored. To fill that gap, this work frames mutual…

Portfolio Management · Quantitative Finance 2024-10-25 Guilherme Thomaz , Denis Maua

The field of portfolio selection is an active research topic, which combines elements and methodologies from various fields, such as optimization, decision analysis, risk management, data science, forecasting, etc. The modeling and…

Portfolio Management · Quantitative Finance 2020-10-28 A. Georgantas

This paper proposes a portfolio construction framework designed to remain robust under estimation error, non-stationarity, and realistic trading constraints. The methodology combines dynamic asset eligibility, deterministic rebalancing, and…

Optimization and Control · Mathematics 2026-01-12 Roberto Garrone

Recommender systems can be helpful for individuals to make well-informed decisions in complex financial markets. While many studies have focused on predicting stock prices, even advanced models fall short of accurately forecasting them.…

Statistical Finance · Quantitative Finance 2024-12-03 Youngbin Lee , Yejin Kim , Javier Sanz-Cruzado , Richard McCreadie , Yongjae Lee

Portfolio optimisation is essential in quantitative investing, but its implementation faces several practical difficulties. One particular challenge is converting optimal portfolio weights into real-life trades in the presence of realistic…

Portfolio Management · Quantitative Finance 2024-10-01 Cristiano Arbex Valle

Artificial Intelligence is being employed by humans to collaboratively solve complicated tasks for search and rescue, manufacturing, etc. Efficient teamwork can be achieved by understanding user preferences and recommending different…

Information Retrieval · Computer Science 2023-01-20 Lakshita Dodeja , Pradyumna Tambwekar , Erin Hedlund-Botti , Matthew Gombolay

Preference-based learning of reward functions, where the reward function is learned using comparison data, has been well studied for complex robotic tasks such as autonomous driving. Existing algorithms have focused on learning reward…

Robotics · Computer Science 2021-03-05 Sydney M. Katz , Amir Maleki , Erdem Bıyık , Mykel J. Kochenderfer

Stochastic portfolio theory aims at finding relative arbitrages, i.e. trading strategies which outperform the market with probability one. Functionally generated portfolios, which are deterministic functions of the market weights, are an…

Mathematical Finance · Quantitative Finance 2021-01-19 Patrick Mijatovic

The paper presents an advanced version of an adaptive market-making agent capable of performing experiential learning, exploiting a "try and fail" approach relying on a swarm of subordinate agents executed in a virtual environment to…

Computational Engineering, Finance, and Science · Computer Science 2023-03-07 Anton Kolonin , Alexey Glushchenko , Arseniy Fokin , Marcello Mari , Mario Casiraghi , Mukul Vishwas

We consider the problem of learning the preferences of a heterogeneous population by observing choices from an assortment of products, ads, or other offerings. Our observation model takes a form common in assortment planning applications:…

Machine Learning · Statistics 2016-06-09 Nathan Kallus , Madeleine Udell

Standard methods in preference learning involve estimating the parameters of discrete choice models from data of selections (choices) made by individuals from a discrete set of alternatives (the choice set). While there are many models for…

Machine Learning · Computer Science 2021-08-18 Kiran Tomlinson , Johan Ugander , Austin R. Benson

User preference learning is generally a hard problem. Individual preferences are typically unknown even to users themselves, while the space of choices is infinite. Here we study user preference learning from information-theoretic…

Machine Learning · Computer Science 2023-11-27 Tanya Ignatenko , Kirill Kondrashov , Marco Cox , Bert de Vries

In this work, we explore the possibility of utilizing transfer learning techniques to address the financial portfolio optimization problem. We introduce a novel concept called "transfer risk", within the optimization framework of transfer…

Portfolio Management · Quantitative Finance 2023-07-26 Haoyang Cao , Haotian Gu , Xin Guo , Mathieu Rosenbaum

The unpredictability and volatility of the stock market render it challenging to make a substantial profit using any generalised scheme. Many previous studies tried different techniques to build a machine learning model, which can make a…

Trading and Market Microstructure · Quantitative Finance 2023-08-14 A. K. M. Amanat Ullah , Fahim Imtiaz , Miftah Uddin Md Ihsan , Md. Golam Rabiul Alam , Mahbub Majumdar
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