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We use an optimization procedure based on simulated bifurcation (SB) to solve the integer portfolio and trading trajectory problem with an unprecedented computational speed. The underlying algorithm is based on a classical description of…

Computational Finance · Quantitative Finance 2020-09-18 Kyle Steinhauer , Takahisa Fukadai , Sho Yoshida

Distributed optimization for resource allocation problems is investigated and a sub-optimal continuous-time algorithm is proposed. Our algorithm has lower order dynamics than others to reduce burdens of computation and communication, and is…

Optimization and Control · Mathematics 2020-02-13 Shu Liang , Xianlin Zeng , Guanpu Chen , Yiguang Hong

We study optimal investment in a financial market having a finite number of assets from a signal processing perspective. We investigate how an investor should distribute capital over these assets and when he should reallocate the…

Portfolio Management · Quantitative Finance 2015-06-04 Sait Tunc , Suleyman S. Kozat

The main contribution of the paper is to employ the financial market network as a useful tool to improve the portfolio selection process, where nodes indicate securities and edges capture the dependence structure of the system. Three…

Portfolio Management · Quantitative Finance 2019-01-15 Gian Paolo Clemente , Rosanna Grassi , Asmerilda Hitaj

Asset management attempts to keep the power system in working conditions. It requires much coordination between multiple entities and long term planning often months in advance. In this work we introduce a mid-term asset management…

Systems and Control · Computer Science 2016-11-18 Gal Dalal , Elad Gilboa , Shie Mannor

Strategic asset allocation requires an investor to select stocks from a given basket of assets. The perspective of our investor is to maximize risk-adjusted alpha returns relative to a benchmark index. Historical returns are used to provide…

Applications · Statistics 2019-12-03 Vadim Sokolov , Michael Polson

We consider the problem of online allocation (matching and assortments) of reusable resources where customers arrive sequentially in an adversarial fashion and allocated resources are used or rented for a stochastic duration that is drawn…

Data Structures and Algorithms · Computer Science 2022-07-20 Vineet Goyal , Garud Iyengar , Rajan Udwani

This article studies and solves the problem of optimal portfolio allocation with CV@R penalty when dealing with imperfectly simulated financial assets. We use a Stochastic biased Mirror Descent to find optimal resource allocation for a…

Optimization and Control · Mathematics 2024-02-20 Manon Costa , Sébastien Gadat , Lorick Huang

With accelerating urbanization and worsening traffic congestion, optimizing traffic signal systems to improve road throughput and alleviate congestion has become a critical issue. This study proposes a short-term traffic prediction model…

Physics and Society · Physics 2025-02-19 Shengda Zhao , Zhekun Liu , Jiaxin Yu , Bocheng Ju , Liang Wang , Xiaodong Zhang , Xinghua Zhang

The portfolio optimization problem in which the variances of the return rates of assets are not identical is analyzed in this paper using the methodology of statistical mechanical informatics, specifically, replica analysis. We define two…

Portfolio Management · Quantitative Finance 2016-12-15 Takashi Shinzato

We consider the optimization problem of a multi-resource, multi-unit VCG auction that produces an optimal, i.e., non-approximated, social welfare. We present an algorithm that solves this optimization problem with pseudo-polynomial…

Computer Science and Game Theory · Computer Science 2019-05-23 Liran Funaro , Orna Agmon Ben-Yehuda , Assaf Schuster

Advancements in quantum computing are fuelling emerging applications across disciplines, including finance, where quantum and quantum-inspired algorithms can now make market predictions, detect fraud, and optimize portfolios. Expanding this…

Quantum Physics · Physics 2023-01-06 Anna G. Hughes , Jack S. Baker , Santosh Kumar Radha

In this paper, we consider distributed optimization design for resource allocation problems over weight-balanced graphs. With the help of singular perturbation analysis, we propose a simple sub-optimal continuous-time optimization…

Optimization and Control · Mathematics 2022-06-14 Shu Liang , Xianlin Zeng , Yiguang Hong

Portfolio optimization is an important process in finance that consists in finding the optimal asset allocation that maximizes expected returns while minimizing risk. When assets are allocated in discrete units, this is a combinatorial…

Statistical Mechanics · Physics 2022-10-04 Álvaro Rubio-García , Juan José García-Ripoll , Diego Porras

In this paper, we consider the optimal coordination of automated vehicles at intersections under fixed crossing orders. We formulate the problem using direct optimal control and exploit the structure to construct a semi-distributed…

Systems and Control · Electrical Eng. & Systems 2021-11-22 Robert Hult , Mario Zanon , Sebastien Gros , Paolo Falcone

The paper presents complexity results and performance guaranties for a family of approximation algorithms for an optimisation problem arising in software testing and manufacturing. The problem is formulated as a partitioning of a set where…

Data Structures and Algorithms · Computer Science 2022-12-13 Yakov Zinder , Bertrand M. T. Lin , Joanna Berlińska

We propose a data-driven Neural Network (NN) optimization framework to determine the optimal multi-period dynamic asset allocation strategy for outperforming a general stochastic target. We formulate the problem as an optimal stochastic…

Computational Finance · Quantitative Finance 2020-06-30 Chendi Ni , Yuying Li , Peter Forsyth , Ray Carroll

In this paper we consider multiple constrained resource allocation problems, where the constraints can be specified by formulating activity dependency restrictions or by using game-theoretic models. All the problems are focused on generic…

Data Structures and Algorithms · Computer Science 2009-06-19 Mugurel Ionut Andreica , Madalina Ecaterina Andreica , Costel Visan

An actively managed portfolio almost never beats the market in the long term. Thus, many investors often resort to passively managed portfolios whose aim is to follow a certain financial index. The task of building such passive portfolios…

In this paper, we propose a stratified sampling algorithm in which the random drawings made in the strata to compute the expectation of interest are also used to adaptively modify the proportion of further drawings in each stratum. These…

Methodology · Statistics 2007-12-04 Pierre Etore , Benjamin Jourdain
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