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Related papers: Data-driven Multiperiod Robust Mean-Variance Optim…

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Given multiple source domains, domain generalization aims at learning a universal model that performs well on any unseen but related target domain. In this work, we focus on the domain generalization scenario where domain shifts occur among…

Machine Learning · Computer Science 2021-09-09 Jingge Wang , Yang Li , Liyan Xie , Yao Xie

Distributionally robust optimization (DRO) is an effective approach for data-driven decision-making in the presence of uncertainty. Geometric uncertainty due to sampling or localized perturbations of data points is captured by Wasserstein…

Machine Learning · Statistics 2023-11-10 Sloan Nietert , Ziv Goldfeld , Soroosh Shafiee

We consider data-driven approaches that integrate a machine learning prediction model within distributionally robust optimization (DRO) given limited joint observations of uncertain parameters and covariates. Our framework is flexible in…

Optimization and Control · Mathematics 2022-05-26 Rohit Kannan , Güzin Bayraksan , James R. Luedtke

This paper considers mean-variance optimization under uncertainty, specifically when one desires a sparsified set of optimal portfolio weights. From the standpoint of a Bayesian investor, our approach produces a small portfolio from many…

Statistical Finance · Quantitative Finance 2016-10-05 David Puelz , P. Richard Hahn , Carlos M. Carvalho

This paper is concerned with portfolio optimization models for creating high-quality lists of recommended items to balance the accuracy and diversity of recommendations. However, the statistics (i.e., expectation and covariance of ratings)…

Information Retrieval · Computer Science 2024-10-01 Tomoya Yanagi , Shunnosuke Ikeda , Yuichi Takano

A robust clustering method for probabilities in Wasserstein space is introduced. This new "trimmed $k$-barycenters" approach relies on recent results on barycenters in Wasserstein space that allow intensive computation, as required by…

Methodology · Statistics 2019-02-06 E. del Barrio , J. A. Cuesta-Albertos , C. Matrán , A. Mayo-Íscar

Using statistical learning methods to analyze stochastic simulation outputs can significantly enhance decision-making by uncovering relationships between different simulated systems and between a system's inputs and outputs. We focus on…

Methodology · Statistics 2026-05-28 Mohammadmahdi Ghasemloo , David J. Eckman

We propose a novel approach to the problem of multilevel clustering, which aims to simultaneously partition data in each group and discover grouping patterns among groups in a potentially large hierarchically structured corpus of data. Our…

Machine Learning · Statistics 2017-06-14 Nhat Ho , XuanLong Nguyen , Mikhail Yurochkin , Hung Hai Bui , Viet Huynh , Dinh Phung

We propose a novel approach to the problem of multilevel clustering, which aims to simultaneously partition data in each group and discover grouping patterns among groups in a potentially large hierarchically structured corpus of data. Our…

Machine Learning · Statistics 2021-05-26 Viet Huynh , Nhat Ho , Nhan Dam , XuanLong Nguyen , Mikhail Yurochkin , Hung Bui , and Dinh Phung

In this paper, we focus on a data-driven risk-averse multistage stochastic programming (RMSP) model considering distributional robustness. We optimize the RMSP over the worst-case distribution within an ambiguity set of probability…

Optimization and Control · Mathematics 2017-08-29 Jianqiu Huang , Kezhuo Zhou , Yongpei Guan

There is a great number of factors to take into account when building and managing an investment portfolio. It is widely believed that a proper set-up of the portfolio combined with a good, robust management strategy is the key to…

Portfolio Management · Quantitative Finance 2021-04-28 Jarosław Gruszka , Janusz Szwabiński

Multi-period mean-variance optimization is a long-standing problem, caused by the failure of dynamic programming principle. This paper studies the mean-variance optimization in a setting of finite-horizon discrete-time Markov decision…

Optimization and Control · Mathematics 2025-07-31 Li Xia , Zhihui Yu

We develop a theory of finite-dimensional polyhedral subsets over the Wasserstein space and optimization of functionals over them via first-order methods. Our main application is to the problem of mean-field variational inference, which…

Statistics Theory · Mathematics 2025-06-02 Yiheng Jiang , Sinho Chewi , Aram-Alexandre Pooladian

We employ model predictive control for a multi-period portfolio optimization problem. In addition to the mean-variance objective, we construct a portfolio whose allocation is given by model predictive control with a risk-parity objective,…

Portfolio Management · Quantitative Finance 2021-03-22 Xiaoyue Li , A. Sinem Uysal , John M. Mulvey

The Wasserstein metric is introduced as a probabilistic method to enable quantitative evaluations of LES combustion models. The Wasserstein metric can directly be evaluated from scatter data or statistical results using probabilistic…

Data Analysis, Statistics and Probability · Physics 2017-06-06 Ross Johnson , Hao Wu , Matthias Ihme

In this paper, we propose a data-driven robust safety verification framework for stochastic dynamical systems modeled as Markov decision processes with time-varying and uncertain transition probabilities. Rather than assuming access to the…

Systems and Control · Electrical Eng. & Systems 2025-12-09 Abhijit Mazumdar , Manuela L. Bujorianu , Rafal Wisniewski

Distributional ambiguity sets provide quantifiable ways to characterize the uncertainty about the true probability distribution of random variables of interest. This makes them a key element in data-driven robust optimization by exploiting…

Optimization and Control · Mathematics 2019-09-26 Dimitris Boskos , Jorge Cortés , Sonia Martínez

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

We study a distributionally robust optimization formulation (i.e., a min-max game) for two representative problems in Bayesian nonparametric estimation: Gaussian process regression and, more generally, linear inverse problems. Our…

Optimization and Control · Mathematics 2025-01-14 Xuhui Zhang , Jose Blanchet , Youssef Marzouk , Viet Anh Nguyen , Sven Wang

This brief note aims to introduce the recent paradigm of distributional robustness in the field of shape and topology optimization. Acknowledging that the probability law of uncertain physical data is rarely known beyond a rough…

Optimization and Control · Mathematics 2023-01-13 Charles Dapogny , Franck Iutzeler , Andrea Meda , Boris Thibert