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In this paper we derive the exact solution of the multi-period portfolio choice problem for an exponential utility function under return predictability. It is assumed that the asset returns depend on predictable variables and that the joint…

Portfolio Management · Quantitative Finance 2023-04-19 Taras Bodnar , Nestor Parolya , Wolfgang Schmid

High dimensional Vector Autoregressions (VAR) have received a lot of interest recently due to novel applications in health, engineering, finance and the social sciences. Three issues arise when analyzing VAR's: (a) The high dimensional…

Statistics Theory · Mathematics 2022-11-15 Sagnik Halder , George Michailidis

In both observational data and randomized control trials, researchers select statistical models to articulate how the outcome of interest varies with combinations of observable covariates. Choosing a model that is too simple can obfuscate…

In this paper, we construct the wavelet eigenvalue regression methodology in high dimensions. We assume that possibly non-Gaussian, finite-variance $p$-variate measurements are made of a low-dimensional $r$-variate ($r \ll p$) fractional…

Statistics Theory · Mathematics 2022-08-01 Patrice Abry , B. Cooper Boniece , Gustavo Didier , Herwig Wendt

We consider adaptive estimation and statistical inference for high-dimensional graph-based linear models. In our model, the coordinates of regression coefficients correspond to an underlying undirected graph. Furthermore, the given graph…

Statistics Theory · Mathematics 2020-01-30 Duzhe Wang , Po-Ling Loh

Conformal predictive systems are sets of predictive distributions with theoretical out-of-sample calibration guarantees. The calibration guarantees are typically that the set of predictions contains a forecast distribution whose prediction…

Methodology · Statistics 2025-11-03 Sam Allen , Enrico Pescara , Johanna Ziegel

We investigate high-dimensional sparse regression when both the noise and the design matrix exhibit heavy-tailed behavior. Standard algorithms typically fail in this regime, as heavy-tailed covariates distort the empirical risk geometry. We…

Methodology · Statistics 2026-01-12 Kaiyuan Zhou , Xiaoyu Zhang , Wenyang Zhang , Di Wang

The matrix factor model has drawn growing attention for its advantage in achieving two-directional dimension reduction simultaneously for matrix-structured observations. In this paper, we propose a simple iterative least squares algorithm…

Methodology · Statistics 2023-08-02 Yong He , Ran Zhao , Wen-Xin Zhou

Predicting fund performance is beneficial to both investors and fund managers, and yet is a challenging task. In this paper, we have tested whether deep learning models can predict fund performance more accurately than traditional…

Statistical Finance · Quantitative Finance 2023-08-01 Nghia Chu , Binh Dao , Nga Pham , Huy Nguyen , Hien Tran

We study the problem of variable selection in convex nonparametric regression. Under the assumption that the true regression function is convex and sparse, we develop a screening procedure to select a subset of variables that contains the…

Statistics Theory · Mathematics 2014-11-19 Min Xu , Minhua Chen , John Lafferty

In the first part of this work, we develop a novel scheme for solving nonparametric regression problems. That is the approximation of possibly low regular and noised functions from the knowledge of their approximate values given at some…

Statistics Theory · Mathematics 2021-10-27 Asma Ben Saber , Abderrazek Karoui

We develop a method to generate prediction sets with a guaranteed coverage rate that is robust to corruptions in the training data, such as missing or noisy variables. Our approach builds on conformal prediction, a powerful framework to…

Machine Learning · Computer Science 2025-01-10 Shai Feldman , Yaniv Romano

Motivated by a wide variety of applications, ranging from stochastic optimization to dimension reduction through variable selection, the problem of estimating gradients accurately is of crucial importance in statistics and learning theory.…

Machine Learning · Computer Science 2020-06-29 Guillaume Ausset , Stephan Clémençon , François Portier

We study the problem of nonparametric regression when the regressor is endogenous, which is an important nonparametric instrumental variables (NPIV) regression in econometrics and a difficult ill-posed inverse problem with unknown operator…

Statistics Theory · Mathematics 2017-10-03 Xiaohong Chen , Timothy Christensen

Reliable inference for spatial regression remains challenging because it requires the correct specification of the spatial dependence structure, the mean trend, and the error distribution. Existing parametric testing methods rely on…

Methodology · Statistics 2026-05-12 Kanghyun Wi , Hyoeun Kim , Tomáš Mrkvička , Jorge Mateu , Jaewoo Park

While the traditional viewpoint in machine learning and statistics assumes training and testing samples come from the same population, practice belies this fiction. One strategy -- coming from robust statistics and optimization -- is thus…

Machine Learning · Statistics 2024-07-08 Maxime Cauchois , Suyash Gupta , Alnur Ali , John C. Duchi

Variance estimation in the linear model when $p > n$ is a difficult problem. Standard least squares estimation techniques do not apply. Several variance estimators have been proposed in the literature, all with accompanying asymptotic…

Methodology · Statistics 2014-01-30 Stephen Reid , Robert Tibshirani , Jerome Friedman

We study uniform consistency in nonparametric mixture models as well as closely related mixture of regression (also known as mixed regression) models, where the regression functions are allowed to be nonparametric and the error…

Statistics Theory · Mathematics 2022-12-29 Bryon Aragam , Ruiyi Yang

In this paper, we propose a market model with returns assumed to follow a multivariate normal tempered stable distribution defined by a mixture of the multivariate normal distribution and the tempered stable subordinator. This distribution…

Portfolio Management · Quantitative Finance 2020-09-22 Young Shin Kim

Constrained approaches to maximum likelihood estimation in the context of finite mixtures of normals have been presented in the literature. A fully data-dependent constrained method for maximum likelihood estimation of clusterwise linear…

Methodology · Statistics 2016-11-11 Roberto Di Mari , Roberto Rocci , Stefano Antonio Gattone