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The fundamental principle in Modern Portfolio Theory (MPT) is based on the quantification of the portfolio's risk related to performance. Although MPT has made huge impacts on the investment world and prompted the success and prevalence of…

Portfolio Management · Quantitative Finance 2021-02-15 Shi Yu , Haoran Wang , Chaosheng Dong

We study a generalization of the multi-armed bandit problem with multiple plays where there is a cost associated with pulling each arm and the agent has a budget at each time that dictates how much she can expect to spend. We derive an…

Machine Learning · Statistics 2019-09-13 Alexander Luedtke , Emilie Kaufmann , Antoine Chambaz

We study the problem of online multi-task learning where the tasks are performed within similar but not necessarily identical multi-armed bandit environments. In particular, we study how a learner can improve its overall performance across…

Machine Learning · Computer Science 2022-06-20 Zhi Wang , Chicheng Zhang , Kamalika Chaudhuri

This work explores adaptations of successful multi-armed bandits policies to the online contextual bandits scenario with binary rewards using binary classification algorithms such as logistic regression as black-box oracles. Some of these…

Machine Learning · Computer Science 2019-11-26 David Cortes

Portfolio optimization has long been dominated by covariance-based strategies, such as the Markowitz Mean-Variance framework. However, these approaches often fail to ensure a balanced risk structure across assets, leading to concentration…

Portfolio Management · Quantitative Finance 2025-08-07 Biswarup Chakraborty

The stochastic multi-armed bandit has provided a framework for studying decision-making in unknown environments. We propose a variant of the stochastic multi-armed bandit where the rewards are sampled from a stochastic linear dynamical…

Machine Learning · Computer Science 2022-04-13 Jonathan Gornet , Mehdi Hosseinzadeh , Bruno Sinopoli

We consider a sequential subset selection problem under parameter uncertainty, where at each time step, the decision maker selects a subset of cardinality $K$ from $N$ possible items (arms), and observes a (bandit) feedback in the form of…

Machine Learning · Computer Science 2019-01-07 Shipra Agrawal , Vashist Avadhanula , Vineet Goyal , Assaf Zeevi

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

Portfolio methods represent a simple but efficient type of action abstraction which has shown to improve the performance of search-based agents in a range of strategy games. We first review existing portfolio techniques and propose a new…

Artificial Intelligence · Computer Science 2021-04-22 Alexander Dockhorn , Jorge Hurtado-Grueso , Dominik Jeurissen , Linjie Xu , Diego Perez-Liebana

Thompson sampling (TS) is widely used in sequential decision making due to its ease of use and appealing empirical performance. However, many existing analytical and empirical results for TS rely on restrictive assumptions on reward…

Machine Learning · Computer Science 2023-06-16 Amin Karbasi , Nikki Lijing Kuang , Yi-An Ma , Siddharth Mitra

Reinforcement learning studies how to balance exploration and exploitation in real-world systems, optimizing interactions with the world while simultaneously learning how the world operates. One general class of algorithms for such learning…

Machine Learning · Statistics 2018-08-10 Iñigo Urteaga , Chris H. Wiggins

The problem of two-sided matching markets has a wide range of real-world applications and has been extensively studied in the literature. A line of recent works have focused on the problem setting where the preferences of one-side market…

Machine Learning · Computer Science 2022-05-03 Fang Kong , Junming Yin , Shuai Li

In this paper, we solve the arms exponential exploding issue in multivariate Multi-Armed Bandit (Multivariate-MAB) problem when the arm dimension hierarchy is considered. We propose a framework called path planning (TS-PP) which utilizes…

Machine Learning · Computer Science 2022-08-19 Keyu Nie , Zezhong Zhang , Ted Tao Yuan , Rong Song , Pauline Berry Burke

We consider the problem of portfolio selection within the classical Markowitz mean-variance framework, reformulated as a constrained least-squares regression problem. We propose to add to the objective function a penalty proportional to the…

Portfolio Management · Quantitative Finance 2013-01-01 Joshua Brodie , Ingrid Daubechies , Christine De Mol , Domenico Giannone , Ignace Loris

Portfolio optimization is a task that investors use to determine the best allocations for their investments, and fund managers implement computational models to help guide their decisions. While one of the most common portfolio optimization…

Portfolio Management · Quantitative Finance 2023-08-23 Kapil Panda

Thompson Sampling has been widely used for contextual bandit problems due to the flexibility of its modeling power. However, a general theory for this class of methods in the frequentist setting is still lacking. In this paper, we present a…

Machine Learning · Computer Science 2021-10-05 Tong Zhang

The multi-armed bandit is a concise model for the problem of iterated decision-making under uncertainty. In each round, a gambler must pull one of $K$ arms of a slot machine, without any foreknowledge of their payouts, except that they are…

Data Structures and Algorithms · Computer Science 2007-05-23 Varsha Dani , Thomas P. Hayes

Sampling from the equilibrium distribution has always been a major problem in molecular simulations due to the very high dimensionality of conformational space. Over several decades, many approaches have been used to overcome the problem.…

Computational Physics · Physics 2020-03-02 Adrià Pérez , Pablo Herrera-Nieto , Stefan Doerr , Gianni De Fabritiis

Thompson sampling (TS) is widely used for stochastic multi-armed bandits, yet its inferential properties under adaptive data collection are subtle. Classical asymptotic theory for sample means can fail because arm-specific sample sizes are…

Machine Learning · Computer Science 2026-02-06 Shunxing Yan , Han Zhong

Recent studies stressed the fact that covariance matrices computed from empirical financial time series appear to contain a high amount of noise. This makes the classical Markowitz Mean-Variance Optimization model unable to correctly…

Optimization and Control · Mathematics 2021-03-03 Justo Puerto , Federica Ricca , Moisés Rodríguez-Madrena , Andrea Scozzari
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