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In this paper, we discuss portfolio selection strategies for Enhanced Indexation (EI), which are based on stochastic dominance relations. The goal is to select portfolios that stochastically dominate a given benchmark but that, at the same…

Portfolio Management · Quantitative Finance 2024-01-24 Francesco Cesarone , Justo Puerto

We construct the maximally predictable portfolio (MPP) of stocks using machine learning. Solving for the optimal constrained weights in the multi-asset MPP gives portfolios with a high monthly coefficient of determination, given the sample…

Computational Finance · Quantitative Finance 2023-11-06 Michael Pinelis , David Ruppert

Portfolio optimization is a critical task in investment. Most existing portfolio optimization methods require information on the distribution of returns of the assets that make up the portfolio. However, such distribution information is…

Econometrics · Economics 2025-10-09 Masahiro Kato , Kentaro Baba , Hibiki Kaibuchi , Ryo Inokuchi

Neural networks excel at pattern recognition but struggle with constraint reasoning -- determining whether configurations satisfy logical or physical constraints. We introduce Differentiable Symbolic Planning (DSP), a neural architecture…

Machine Learning · Computer Science 2026-04-06 Venkatakrishna Reddy Oruganti

We propose a two-level, learning-based portfolio method (RL-BHRP) that spreads risk across sectors and stocks, and adjusts exposures as market conditions change. Using U.S. Equities from 2012 to mid-2025, we design the model using 2012 to…

Portfolio Management · Quantitative Finance 2025-08-19 Shaofeng Kang , Zeying Tian

This paper introduces a novel methodology for index return forecasting, blending highly correlated stock prices, advanced deep learning techniques, and intricate factor integration. Departing from conventional cap-weighted approaches, our…

General Finance · Quantitative Finance 2024-05-06 Tian Tian , Ricky Cooper , Jiahao Deng , Qingquan Zhang

Portfolio optimization is essential for balancing risk and return in financial decision-making. Deep Reinforcement Learning (DRL) has stood out as a cutting-edge tool for portfolio optimization that learns dynamic asset allocation using…

Machine Learning · Computer Science 2025-09-16 Himanshu Choudhary , Arishi Orra , Manoj Thakur

Deep Neural Networks (DNNs) are computationally and memory intensive, which makes their hardware implementation a challenging task especially for resource constrained devices such as IoT nodes. To address this challenge, this paper…

Computer Vision and Pattern Recognition · Computer Science 2021-05-10 Mohammed F. Tolba , Huruy Tekle Tesfai , Hani Saleh , Baker Mohammad , Mahmoud Al-Qutayri

In this work, we propose an approach to generalize denoising diffusion probabilistic models for stock market predictions and portfolio management. Present works have demonstrated the efficacy of modeling interstock relations for market…

Machine Learning · Computer Science 2024-03-22 Divyanshu Daiya , Monika Yadav , Harshit Singh Rao

The paper introduces the weighted convolution, a novel approach to the convolution for signals defined on regular grids (e.g., 2D images) through the application of an optimal density function to scale the contribution of neighbouring…

Computer Vision and Pattern Recognition · Computer Science 2025-06-02 Simone Cammarasana , Giuseppe Patanè

The problem of portfolio management represents an important and challenging class of dynamic decision making problems, where rebalancing decisions need to be made over time with the consideration of many factors such as investors…

Portfolio Management · Quantitative Finance 2021-09-29 Saeed Marzban , Erick Delage , Jonathan Yumeng Li , Jeremie Desgagne-Bouchard , Carl Dussault

Supervised training of deep neural networks for classification typically relies on hard targets, which promote overconfidence and can limit calibration, generalization, and robustness. Self-distillation methods aim to mitigate this by…

Computer Vision and Pattern Recognition · Computer Science 2026-02-06 Anton Adelöw , Matteo Gamba , Atsuto Maki

This article introduces a novel hybrid regime identification-forecasting framework designed to enhance multi-asset portfolio construction by integrating asset-specific regime forecasts. Unlike traditional approaches that focus on broad…

Portfolio Management · Quantitative Finance 2024-08-19 Yizhan Shu , Chenyu Yu , John M. Mulvey

Recognizing that asset markets generally exhibit shared informational characteristics, we develop a portfolio strategy based on transfer learning that leverages cross-market information to enhance the investment performance in the market of…

Portfolio Management · Quantitative Finance 2025-11-27 Kexin Wang , Xiaomeng Zhang , Xinyu Zhang

Deep hedging represents a cutting-edge approach to risk management for financial derivatives by leveraging the power of deep learning. However, existing methods often face challenges related to computational inefficiency, sensitivity to…

Machine Learning · Computer Science 2025-02-26 Lei Zhao , Lin Cai

We present a new method to approximate posterior probabilities of Bayesian Network using Deep Neural Network. Experiment results on several public Bayesian Network datasets shows that Deep Neural Network is capable of learning joint…

Machine Learning · Computer Science 2018-01-12 Jie Jia , Honggang Zhou , Yunchun Li

The performance of deep neural networks scales with dataset size and label quality, rendering the efficient mitigation of low-quality data annotations crucial for building robust and cost-effective systems. Existing strategies to address…

Computer Vision and Pattern Recognition · Computer Science 2025-04-15 Francesco Di Salvo , Sebastian Doerrich , Ines Rieger , Christian Ledig

Deep reinforcement learning (DRL) has been widely studied in the portfolio management task. However, it is challenging to understand a DRL-based trading strategy because of the black-box nature of deep neural networks. In this paper, we…

Portfolio Management · Quantitative Finance 2021-12-21 Mao Guan , Xiao-Yang Liu

Dense subgraph discovery methods are routinely used in a variety of applications including the identification of a team of skilled individuals for collaboration from a social network. However, when the network's node set is associated with…

Social and Information Networks · Computer Science 2023-06-06 Atsushi Miyauchi , Tianyi Chen , Konstantinos Sotiropoulos , Charalampos E. Tsourakakis

Making consistently profitable financial decisions in a continuously evolving and volatile stock market has always been a difficult task. Professionals from different disciplines have developed foundational theories to anticipate price…

Machine Learning · Computer Science 2025-11-11 Ruoyu Guo , Haochen Qiu , Xuelun Hou
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