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The performance of a cross-sectional currency strategy depends crucially on accurately ranking instruments prior to portfolio construction. While this ranking step is traditionally performed using heuristics, or by sorting the outputs…

Portfolio Management · Quantitative Finance 2022-01-31 Daniel Poh , Bryan Lim , Stefan Zohren , Stephen Roberts

Portfolio management issues have been extensively studied in the field of artificial intelligence in recent years, but existing deep learning-based quantitative trading methods have some areas where they could be improved. First of all, the…

Computational Finance · Quantitative Finance 2024-02-27 Qishuo Cheng , Le Yang , Jiajian Zheng , Miao Tian , Duan Xin

An investment portfolio consists of $n$ algorithmic trading strategies, which generate vectors of positions in trading assets. Sign opposite trades (buy/sell) cross each other as strategies are combined in a portfolio. Then portfolio…

Portfolio Management · Quantitative Finance 2024-12-05 A. V. Kuliga , I. N. Shnurnikov

Complex statistical machine learning models are increasingly being used or considered for use in high-stakes decision-making pipelines in domains such as financial services, health care, criminal justice and human services. These models are…

Applications · Statistics 2017-07-04 Alexandra Chouldechova , Max G'Sell

The common purpose of applying reinforcement learning (RL) to asset management is the maximization of profit. The extrinsic reward function used to learn an optimal strategy typically does not take into account any other preferences or…

Machine Learning · Computer Science 2022-09-16 Charl Maree , Christian W. Omlin

This paper is concerned with portfolio optimization models for creating high-quality lists of recommended items to balance the accuracy and diversity of recommendations. However, the statistics (i.e., expectation and covariance of ratings)…

Information Retrieval · Computer Science 2024-10-01 Tomoya Yanagi , Shunnosuke Ikeda , Yuichi Takano

In the seminal work [9], several macroscopic market observables have been introduced, in an attempt to find characteristics capturing the diversity of a financial market. Despite the crucial importance of such observables for investment…

Probability · Mathematics 2018-02-13 Sergio A. Almada Monter , Mykhaylo Shkolnikov , Jiacheng Zhang

The variance measures the portfolio risks the investors are taking. The investor, who holds his portfolio and doesn't trade his shares, at the current time can use the time series of the market trades that were made during the averaging…

General Economics · Economics 2025-07-08 Victor Olkhov

A researcher allocates a budget of informative tests across multiple unknown attributes to influence a decision-maker. We derive the researcher's equilibrium learning strategy by solving an auxiliary single-player problem. The attribute…

Theoretical Economics · Economics 2025-11-27 Jean-Michel Benkert , Ludmila Matyskova , Egor Starkov

Risk and uncertainty will always be a matter of experience, luck, skills, and modelling. Leverage is another concept, which is critical for the investor decisions and results. Adaptive skills and quantitative probabilistic methods need to…

Risk Management · Quantitative Finance 2016-12-22 Mihail Turlakov

Bayesian optimization is a powerful tool for fine-tuning the hyper-parameters of a wide variety of machine learning models. The success of machine learning has led practitioners in diverse real-world settings to learn classifiers for…

Machine Learning · Statistics 2015-02-24 Matt J. Kusner , Jacob R. Gardner , Roman Garnett , Kilian Q. Weinberger

Recommendation algorithms typically build models based on historical user-item interactions (e.g., clicks, likes, or ratings) to provide a personalized ranked list of items. These interactions are often distributed unevenly over different…

Information Retrieval · Computer Science 2021-03-16 Ziwei Zhu , Jianling Wang , James Caverlee

We study continuous-time portfolio choice with nonlinear payoffs under smooth ambiguity and Bayesian learning. We develop a general framework for dynamic, non-concave asset allocation that accommodates nonlinear payoffs, broad utility…

Portfolio Management · Quantitative Finance 2026-03-10 Emanuele Borgonovo , An Chen , Massimo Marinacci , Shihao Zhu

Deep Bayesian neural network has aroused a great attention in recent years since it combines the benefits of deep neural network and probability theory. Because of this, the network can make predictions and quantify the uncertainty of the…

Machine Learning · Computer Science 2019-03-25 Yikuan Li , Yajie Zhu

I describe a method for estimating agents' perceived returns to investments that relies on cross-sectional data containing binary choices and prices, where prices may be imperfectly known to agents. This method identifies the scale of…

Econometrics · Economics 2021-01-27 Clint Harris

Optimizing portfolio performance is a fundamental challenge in financial modeling, requiring the integration of advanced clustering techniques and data-driven optimization strategies. This paper introduces a comparative backtesting approach…

Machine Learning · Computer Science 2025-01-23 Keon Vin Park

With ever-increasing available data, predicting individuals' preferences and helping them locate the most relevant information has become a pressing need. Understanding and predicting preferences is also important from a fundamental point…

Physics and Society · Physics 2012-10-05 Roger Guimera , Alejandro Llorente , Esteban Moro , Marta Sales-Pardo

Specifying complex task behaviours while ensuring good robot performance may be difficult for untrained users. We study a framework for users to specify rules for acceptable behaviour in a shared environment such as industrial facilities.…

Robotics · Computer Science 2019-07-25 Nils Wilde , Dana Kulic , Stephen L. Smith

Online portfolio selection is an integral componentof wealth management. The fundamental undertaking is tomaximise returns while minimising risk given investor con-straints. We aim to examine and improve modern strategiesto generate higher…

Computational Engineering, Finance, and Science · Computer Science 2021-09-29 Matthew Kruger , Terence L. van Zyl , Andrew Paskaramoorthy

This paper introduces a novel stochastic control framework to enhance the capabilities of automated investment managers, or robo-advisors, by accurately inferring clients' investment preferences from past activities. Our approach leverages…

Optimization and Control · Mathematics 2024-06-05 Haoyang Cao , Zhengqi Wu , Renyuan Xu