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In the present paper, the primal-dual problem consisting of the investment risk minimization problem and the expected return maximization problem in the mean-variance model is discussed using replica analysis. As a natural extension of the…

Portfolio Management · Quantitative Finance 2016-12-20 Takashi Shinzato

We consider the problem of repetitive scenario design where one has to solve repeatedly a scenario design problem and can adjust the sample size (number of scenarios) to obtain a desired level of risk (constraint violation probability). We…

Optimization and Control · Mathematics 2025-09-08 Guillaume O. Berger , Raphaël M. Jungers

We investigate different randomizations for mirror descent method. We try to propose such a randomization that allows us to use sparsity of the problem as much as it possible. In the paper one can also find a generalization of randomizaed…

Optimization and Control · Mathematics 2016-12-12 Anton Anikin , Alexander Gasnikov , Alexander Gornov

From the sampling of data to the initialisation of parameters, randomness is ubiquitous in modern Machine Learning practice. Understanding the statistical fluctuations engendered by the different sources of randomness in prediction is…

Machine Learning · Statistics 2022-10-03 Bruno Loureiro , Cédric Gerbelot , Maria Refinetti , Gabriele Sicuro , Florent Krzakala

We study the set of solutions of random k-satisfiability formulae through the cavity method. It is known that, for an interval of the clause-to-variables ratio, this decomposes into an exponential number of pure states (clusters). We refine…

Disordered Systems and Neural Networks · Physics 2009-11-13 Andrea Montanari , Federico Ricci-Tersenghi , Guilhem Semerjian

With some transformations, we convert the problem of option pricing under state-dependent volatility into an initial value problem of the Fokker-Planck equation with a certain potential. By using the Lie symmetry analysis and similarity…

Pricing of Securities · Quantitative Finance 2013-11-19 Wenqing Bao , ChunLi Chen , Jin E. Zhang

Within a Kuhn-Tucker cavity method introduced in a former paper, we study optimal stability learning for situations, where in the replica formalism the replica symmetry may be broken, namely (i) the case of a simple perceptron above the…

Disordered Systems and Neural Networks · Physics 2009-10-28 F. Gerl , U. Krey

We study the probability distribution $P$ of the sum of a large number of non-identically distributed random variables $n_m$. Condensation of fluctuations, the phenomenon whereby one of such variables provides a macroscopic contribution to…

Statistical Mechanics · Physics 2016-04-29 Federico Corberi

We propose a method to calculate the large deviations of current fluctuations in a class of stochastic particle systems with history-dependent rates. Long-range temporal correlations are seen to alter the speed of the large deviation…

Statistical Mechanics · Physics 2009-08-07 R. J. Harris , H. Touchette

In thermally fluctuating long linear polymeric chain in solution, the ends come from time to time into a direct contact or a close vicinity of each other. At such an instance, the chain can be regarded as a closed one and thus will form a…

Biological Physics · Physics 2007-05-23 Akos Dobay , Pierre-Edouard Sottas , Jacques Dubochet , Andrzej Stasiak

A methodology to analyze the properties of the first (largest) eigenvalue and its eigenvector is developed for large symmetric random sparse matrices utilizing the cavity method of statistical mechanics. Under a tree approximation, which is…

Optimization and Control · Mathematics 2015-05-18 Yoshiyuki Kabashima , Hisanao Takahashi , Osamu Watanabe

The random assignment (or bipartite matching) problem studies the random total cost A_n of the optimal assignment of each of n jobs to each of n machines, where the costs of the n^2 possible job-machine matches has exponential (mean 1)…

Probability · Mathematics 2007-05-23 David J. Aldous

The growing amount of applications that generate vast amount of data in short time scales render the problem of partial monitoring, coupled with prediction, a rather fundamental one. We study the aforementioned canonical problem under the…

Data Structures and Algorithms · Computer Science 2016-08-02 Michalis Kallitsis , Stilian Stoev , George Michailidis

We study the impact of work cost fluctuations on optimal protocols for the creation of correlations in quantum systems. We analyze several notions of work fluctuations to show that even in the simplest case of two free qubits, protocols…

Quantum Physics · Physics 2018-10-08 Emma McKay , Nayeli A. Rodriguez-Briones , Eduardo Martin-Martinez

In this paper, as a first step in examining the properties of a feasible portfolio subset that is characterized by budget and risk constraints, we assess the maximum and minimum of the investment concentration using replica analysis. To do…

Portfolio Management · Quantitative Finance 2016-08-17 Takashi Shinzato

We prove large deviation principles for two versions of fractional Poisson processes. Firstly we consider the main version which is a renewal process; we also present large deviation estimates for the ruin probabilities of an insurance…

Probability · Mathematics 2016-11-26 Luisa Beghin , Claudio Macci

If the prior probability distributions of all possible hypothetical true means and all possible observed means of a continuous variable are conditional on the universal set of all numbers (i.e., before the nature of a study is known and a…

Methodology · Statistics 2025-06-05 Huw Llewelyn

In this paper, we study the problem of estimating uniformly well the mean values of several distributions given a finite budget of samples. If the variance of the distributions were known, one could design an optimal sampling strategy by…

Machine Learning · Computer Science 2015-07-17 Alexandra Carpentier , Alessandro Lazaric , Mohammad Ghavamzadeh , Rémi Munos , Peter Auer , András Antos

Stochastic programming models can lead to very large-scale optimization problems for which it may be impossible to enumerate all possible scenarios. In such cases, one adopts a sampling-based solution methodology in which case the…

Optimization and Control · Mathematics 2024-05-20 Shuotao Diao , Suvrajeet Sen

Stochastic local search algorithms are frequently used to numerically solve hard combinatorial optimization or decision problems. We give numerical and approximate analytical descriptions of the dynamics of such algorithms applied to random…

Statistical Mechanics · Physics 2009-11-10 Wolfgang Barthel , Alexander K. Hartmann , Martin Weigt