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Conditional Value-at-Risk (CVaR) is a widely used risk metric in applications such as finance. We derive concentration bounds for CVaR estimates, considering separately the cases of light-tailed and heavy-tailed distributions. In the…

Machine Learning · Computer Science 2019-08-27 Prashanth L. A. , Krishna Jagannathan , Ravi Kumar Kolla

High-dimensional financial time series often exhibit complex dependence relations driven by both common market structures and latent connections among assets. To capture these characteristics, this paper proposes Factor-Driven Network…

Methodology · Statistics 2025-11-27 Brendan Martin , Mihai Cucuringu , Alessandra Luati , Francesco Sanna Passino

In this study, we have developed a dynamic asset allocation investment strategy using reinforcement learning techniques. To begin with, we have addressed the crucial issue of incorporating non-stationarity of financial time series data into…

Portfolio Management · Quantitative Finance 2023-11-10 Yasuhiro Nakayama , Tomochika Sawaki

Purpose: This study introduces a novel framework for identifying and exploiting predictive lead-lag relationships in financial markets. We propose an integrated approach that combines advanced statistical methodologies with machine learning…

Statistical Finance · Quantitative Finance 2025-07-15 Ivan Letteri

This work provides a Deep Reinforcement Learning approach to solving a periodic review inventory control system with stochastic vendor lead times, lost sales, correlated demand, and price matching. While this dynamic program has…

Machine Learning · Computer Science 2022-11-30 Dhruv Madeka , Kari Torkkola , Carson Eisenach , Anna Luo , Dean P. Foster , Sham M. Kakade

We develop a portfolio allocation framework that leverages deep learning techniques to address challenges arising from high-dimensional, non-stationary, and low-signal-to-noise market information. Our approach includes a dynamic embedding…

Portfolio Management · Quantitative Finance 2025-01-31 Jinghai He , Cheng Hua , Chunyang Zhou , Zeyu Zheng

Time series momentum strategies are widely applied in the quantitative financial industry and its academic research has grown rapidly since the work of Moskowitz, Ooi and Pedersen (2012). However, trading signals are usually obtained via…

Statistical Finance · Quantitative Finance 2021-11-09 Bruno P. C. Levy , Hedibert F. Lopes

Accurate volatility forecasts are vital in modern finance for risk management, portfolio allocation, and strategic decision-making. However, existing methods face key limitations. Fully multivariate models, while comprehensive, are…

Statistical Finance · Quantitative Finance 2025-10-09 Duo Zhang , Jiayu Li , Junyi Mo , Elynn Chen

The real-world data distribution is essentially long-tailed, which poses great challenge to the deep model. In this work, we propose a new method, Gradual Balanced Loss and Adaptive Feature Generator (GLAG) to alleviate imbalance. GLAG…

Computer Vision and Pattern Recognition · Computer Science 2022-03-02 Zihan Zhang , Xiang Xiang

With the rapid development of artificial intelligence, data-driven methods effectively overcome limitations in traditional portfolio optimization. Conventional models primarily employ long-only mechanisms, excluding highly correlated assets…

Computational Finance · Quantitative Finance 2025-03-18 Gang Huang , Xiaohua Zhou , Qingyang Song

Financial portfolios are often optimized for maximum profit while subject to a constraint formulated in terms of the Conditional Value-at-Risk (CVaR). This amounts to solving a linear problem. However, in its original formulation this…

Optimization and Control · Mathematics 2014-08-13 Georg Hofmann

CVaR (Conditional Value at Risk) is a risk metric widely used in finance. However, dynamically optimizing CVaR is difficult since it is not a standard Markov decision process (MDP) and the principle of dynamic programming fails. In this…

Optimization and Control · Mathematics 2022-10-18 Li Xia , Peter W. Glynn

The popular systemic risk measure CoVaR (conditional Value-at-Risk) and its variants are widely used in economics and finance. In this article, we propose joint dynamic forecasting models for the Value-at-Risk (VaR) and CoVaR. The CoVaR…

Econometrics · Economics 2025-01-22 Timo Dimitriadis , Yannick Hoga

We propose a Gaussian-copula-based framework that learns deal-level dependence directly from observed joint success frequencies across founder, geography, and market attributes. Holding marginal deal success probabilities fixed, deal-level…

Portfolio Management · Quantitative Finance 2026-04-28 Yunqi Liang , Hasan Ugur Koyluoglu , Fuat Alican , Yigit Ihlamur

Motivated by applications such as cloud platforms allocating GPUs to users or governments deploying mobile health units across competing regions, we study the dynamic allocation of a reusable resource to strategic agents with private…

Computer Science and Game Theory · Computer Science 2025-07-15 Yan Dai , Negin Golrezaei , Patrick Jaillet

Conventional Reinforcement Learning (RL) algorithms, typically focused on estimating or maximizing expected returns, face challenges when refining offline pretrained models with online experiences. This paper introduces Generative Actor…

Machine Learning · Computer Science 2025-12-29 Aoyang Qin , Deqian Kong , Wei Wang , Ying Nian Wu , Song-Chun Zhu , Sirui Xie

Deep Reinforcement learning is a branch of unsupervised learning in which an agent learns to act based on environment state in order to maximize its total reward. Deep reinforcement learning provides good opportunity to model the complexity…

Statistical Finance · Quantitative Finance 2021-08-05 Zhaolu Dong , Shan Huang , Simiao Ma , Yining Qian

Data generation is a fundamental research problem in data management due to its diverse use cases, ranging from testing database engines to data-specific applications. However, real-world entities often involve complex interactions that…

Databases · Computer Science 2024-12-13 Fan Li , Xiaoyang Wang , Dawei Cheng , Cong Chen , Ying Zhang , Xuemin Lin

We present a data-efficient framework for solving visuomotor sequential decision-making problems which exploits the combination of reinforcement learning (RL) and latent variable generative models. Our framework trains deep visuomotor…

Robotics · Computer Science 2020-11-09 Ali Ghadirzadeh , Petra Poklukar , Ville Kyrki , Danica Kragic , Mårten Björkman

Optimizing Conditional Value-at-risk (CVaR) using policy gradient (a.k.a CVaR-PG) faces significant challenges of sample inefficiency. This inefficiency stems from the fact that it focuses on tail-end performance and overlooks many sampled…

Machine Learning · Computer Science 2026-02-06 Yudong Luo , Erick Delage