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Managing insurance and financial risk when data is limited is a key task in the insurance industry. In this paper, we focus on cases where the risk distribution is modeled as a mixture with some components estimable to high precision or…

Optimization and Control · Mathematics 2026-03-03 N. D. Shyamalkumar , Tianrun Wang

We consider the problem of optimizing a portfolio of financial assets, where the number of assets can be much larger than the number of observations. The optimal portfolio weights require estimating the inverse covariance matrix of excess…

Portfolio Management · Quantitative Finance 2021-09-29 Anik Burman , Sayantan Banerjee

In portfolio risk minimization, the inverse covariance matrix of returns is often unknown and has to be estimated in practice. This inverse covariance matrix also prescribes the hedge trades in which a stock is hedged by all the other…

Portfolio Management · Quantitative Finance 2024-07-15 Lim Hao Shen Keith

We consider nonconvex optimization problem over simplex, and more generally, a product of simplices. We provide an algorithm, Langevin Multiplicative Weights Update (LMWU) for solving global optimization problems by adding a noise scaling…

Optimization and Control · Mathematics 2025-03-04 Yi Feng , Xiao Wang , Tian Xie

We provide theory for computing the lower semi-continuous convex envelope of functionals of the type f(x) plus an l2 misfit, and discuss applications to various non-convex optimization problems. The latter term is a data fit term whereas f…

Optimization and Control · Mathematics 2018-11-12 Marcus Carlsson

Given a sample covariance matrix, we examine the problem of maximizing the variance explained by a linear combination of the input variables while constraining the number of nonzero coefficients in this combination. This is known as sparse…

Optimization and Control · Mathematics 2010-12-24 Youwei Zhang , Alexandre d'Aspremont , Laurent El Ghaoui

We propose stochastic variance reduced algorithms for solving convex-concave saddle point problems, monotone variational inequalities, and monotone inclusions. Our framework applies to extragradient, forward-backward-forward, and…

Optimization and Control · Mathematics 2022-06-14 Ahmet Alacaoglu , Yura Malitsky

We prove weak duality between two recent convex relaxation methods for bounding the optimal value of a constrained variational problem in which the objective is an integral functional. The first approach, proposed by Valmorbida et al. (IEEE…

Optimization and Control · Mathematics 2019-07-01 Giovanni Fantuzzi

We propose a novel method to fit and segment multi-structural data via convex relaxation. Unlike greedy methods --which maximise the number of inliers-- this approach efficiently searches for a soft assignment of points to models by…

Computer Vision and Pattern Recognition · Computer Science 2017-06-07 Paul Amayo , Pedro Pinies , Lina M. Paz , Paul Newman

The problem of low-rank approximation with convex constraints, which appears in data analysis, system identification, model order reduction, low-order controller design and low-complexity modelling is considered. Given a matrix, the…

Optimization and Control · Mathematics 2018-11-12 Christian Grussler , Anders Rantzer , Pontus Giselsson

We study some methods of subgradient projections for solving a convex feasibility problem with general (not necessarily hyperplanes or half-spaces) convex sets in the inconsistent case and propose a strategy that controls the relaxation…

Optimization and Control · Mathematics 2010-09-21 Dan Butnariu , Yair Censor , Pini Gurfil , Ethan Hadar

In covariance matrix estimation, one of the challenges lies in finding a suitable model and an efficient estimation method. Two commonly used modelling approaches in the literature involve imposing linear restrictions on the covariance…

Statistics Theory · Mathematics 2024-05-09 Piotr Zwiernik

This article considers nonconvex global optimization problems subject to uncertainties described by continuous random variables. Such problems arise in chemical process design, renewable energy systems, stochastic model predictive control,…

Optimization and Control · Mathematics 2017-09-27 Yuanxun Shao , Joseph Kirk Scott

Multicriterion optimization and Pareto optimality are fundamental tools in economics. In this paper we propose a new relaxation method for solving multiple objective quadratic programming problems. Exploiting the technique of the linear…

Optimization and Control · Mathematics 2012-11-21 Yan-Qin Bai , Chuan-Hao Guo

Variable selection is a fundamental task in statistical data analysis. Sparsity-inducing regularization methods are a popular class of methods that simultaneously perform variable selection and model estimation. The central problem is a…

Machine Learning · Computer Science 2016-03-16 Hongbo Dong , Kun Chen , Jeff Linderoth

We study the total least squares (TLS) problem that generalizes least squares regression by allowing measurement errors in both dependent and independent variables. TLS is widely used in applied fields including computer vision, system…

Machine Learning · Statistics 2014-07-01 Dmitry Malioutov , Nikolai Slavov

The problem of joint feature selection across a group of related tasks has applications in many areas including biomedical informatics and computer vision. We consider the l2,1-norm regularized regression model for joint feature selection…

Machine Learning · Computer Science 2012-05-14 Jun Liu , Shuiwang Ji , Jieping Ye

The sparse portfolio selection problem is one of the most famous and frequently-studied problems in the optimization and financial economics literatures. In a universe of risky assets, the goal is to construct a portfolio with maximal…

Optimization and Control · Mathematics 2022-02-22 Dimitris Bertsimas , Ryan Cory-Wright

We consider regularized least-squares problems of the form $\min_{x} \frac{1}{2}\Vert Ax - b\Vert_2^2 + \mathcal{R}(Lx)$. Recently, Zheng et al., 2019, proposed an algorithm called Sparse Relaxed Regularized Regression (SR3) that employs a…

Numerical Analysis · Mathematics 2020-11-16 Nick Luiken , Tristan van Leeuwen

This two-part paper is concerned with the problem of minimizing a linear objective function subject to a bilinear matrix inequality (BMI) constraint. In this part, we first consider a family of convex relaxations which transform BMI…

Optimization and Control · Mathematics 2018-09-27 Mohsen Kheirandishfard , Fariba Zohrizadeh , Ramtin Madani