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This paper concerns the numerical solution of a fully nonlinear parabolic double obstacle problem arising from a finite portfolio selection with proportional transaction costs. We consider the optimal allocation of wealth among multiple…

Portfolio Management · Quantitative Finance 2017-11-06 Arash Fahim , Wan-Yu Tsai

This paper presents a new combinatorial optimisation task, the Subset Sum Matching Problem (SSMP), which is an abstraction of common financial applications such as trades reconciliation. We present three algorithms, two suboptimal and one…

Artificial Intelligence · Computer Science 2025-08-27 Yufei Wu , Manuel R. Torres , Parisa Zehtabi , Alberto Pozanco Lancho , Michael Cashmore , Daniel Borrajo , Manuela Veloso

This study demonstrates whether financial text is useful for tactical asset allocation using stocks by using natural language processing to create polarity indexes in financial news. In this study, we performed clustering of the created…

Computational Engineering, Finance, and Science · Computer Science 2024-08-14 Rei Taguchi , Hiroki Sakaji , Kiyoshi Izumi

This paper considers a problem where multiple users make repeated decisions based on their own observed events. The events and decisions at each time step determine the values of a utility function and a collection of penalty functions. The…

Optimization and Control · Mathematics 2013-05-13 Michael J. Neely

A constant rebalanced portfolio is an asset allocation algorithm which keeps the same distribution of wealth among a set of assets along a period of time. Recently, there has been work on on-line portfolio selection algorithms which are…

Portfolio Management · Quantitative Finance 2013-02-01 Yoram Singer

In natural perception, different items (objects) in a scene are rarely equally relevant to the observer. The brain improves performance by directing attention to the most relevant items, for example the ones most likely to be probed. For a…

Neurons and Cognition · Quantitative Biology 2018-02-20 Nuwan de Silva , Wei Ji Ma

In the classical facility location problem we consider a graph $G$ with fixed weights on the edges of $G$. The goal is then to find an optimal positioning for a set of facilities on the graph with respect to some objective function. We…

Data Structures and Algorithms · Computer Science 2014-06-10 Boaz Ben-Moshe , Michael Elkin , Lee-Ad Gottlieb , Eran Omri

Over the past a few years, research and development has made significant progresses on big data analytics. A fundamental issue for big data analytics is the efficiency. If the optimal solution is unable to attain or not required or has a…

Databases · Computer Science 2019-01-03 Shuai Ma , Jinpeng Huai

Rough stochastic volatility models have attracted a lot of attentions recently, in particular for the linear option pricing problem. In this paper, starting with power utilities, we propose to use a martingale distortion representation of…

Mathematical Finance · Quantitative Finance 2017-12-12 Jean-Pierre Fouque , Ruimeng Hu

This work presents a decentralized allocation algorithm of safety-critical application on parallel computing architectures, where individual Computational Units can be affected by faults. The described method consists in representing the…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-11-20 Thanakorn Khamvilai , Louis Sutter , Eric Feron , Philippe Baufreton , Francois Neumann

We report a new optimal resolution for the statistical stratification problem under proportional sampling allocation among strata. Consider a finite population of N units, a random sample of n units selected from this population and a…

Machine Learning · Computer Science 2009-02-24 Jose Brito , Mauricio Lila , Flavio Montenegro , Nelson Maculan

In this paper, we provide some general convergence results for adaptive designs for treatment comparison, both in the absence and presence of covariates. In particular, we demonstrate the almost sure convergence of the treatment allocation…

Methodology · Statistics 2015-06-01 Alessandro Baldi Antognini , Maroussa Zagoraiou

Financial portfolio optimization is a widely studied problem in mathematics, statistics, financial and computational literature. It adheres to determining an optimal combination of weights associated with financial assets held in a…

Portfolio Management · Quantitative Finance 2013-01-21 Ankit Dangi

Probabilistic graphical models have emerged as a powerful modeling tool for several real-world scenarios where one needs to reason under uncertainty. A graphical model's partition function is a central quantity of interest, and its…

Artificial Intelligence · Computer Science 2021-05-25 Durgesh Agrawal , Yash Pote , Kuldeep S Meel

We present prior robust algorithms for a large class of resource allocation problems where requests arrive one-by-one (online), drawn independently from an unknown distribution at every step. We design a single algorithm that, for every…

Data Structures and Algorithms · Computer Science 2019-03-12 Nikhil R. Devanur , Kamal Jain , Balasubramanian Sivan , Christopher A. Wilkens

Traditional approaches to financial asset allocation start with returns forecasting followed by an optimization stage that decides the optimal asset weights. Any errors made during the forecasting step reduce the accuracy of the asset…

Portfolio Management · Quantitative Finance 2022-06-08 Damian Kisiel , Denise Gorse

This work initiates research into the problem of determining an optimal investment strategy for investors with different attitudes towards the trade-offs of risk and profit. The probability distribution of the return values of the stocks…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Ming-Yang Kao , Andreas Nolte , Stephen R. Tate

We present new algorithms and fast implementations to find efficient approximations for modelling stochastic processes. For many numerical computations it is essential to develop finite approximations for stochastic processes. While the…

Optimization and Control · Mathematics 2020-12-03 Kipngeno Benard Kirui , Georg Ch. Pflug , Alois Pichler

We investigate the existence of approximation algorithms for maximization of submodular functions, that run in fixed parameter tractable (FPT) time. Given a non-decreasing submodular set function $v: 2^X \to \mathbb{R}$ the goal is to…

Data Structures and Algorithms · Computer Science 2021-04-21 Piotr Skowron

We study the problem of designing optimal auctions under restrictions on the set of permissible allocations. In addition to allowing us to restrict to deterministic mechanisms, we can also indirectly model non-additive valuations. We prove…

Computer Science and Game Theory · Computer Science 2016-06-07 Ian Kash , Rafael Frongillo
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