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Many cryptocurrency brokers nowadays offer a variety of derivative assets that allow traders to perform hedging or speculation. This paper proposes an effective algorithm based on neural networks to take advantage of these investment…

Machine Learning · Computer Science 2023-10-03 Quoc Minh Nguyen , Dat Thanh Tran , Juho Kanniainen , Alexandros Iosifidis , Moncef Gabbouj

This paper explores option portfolio optimization when the underlying returns are skew-elliptical t-distributed. We use the variance and value at risk (VaR) to measure portfolio risk. The novelty of our work is the departure from the…

Portfolio Management · Quantitative Finance 2026-05-01 Kyle Sung , Traian A. Pirvu

Stock return predictability is an important research theme as it reflects our economic and social organization, and significant efforts are made to explain the dynamism therein. Statistics of strong explanative power, called "factor" have…

Statistical Finance · Quantitative Finance 2020-11-26 Kei Nakagawa , Masaya Abe , Junpei Komiyama

It is widely recognized that when classical optimal strategies are applied with parameters estimated from data, the resulting portfolio weights are remarkably volatile and unstable over time. The predominant explanation for this is the…

Statistics Theory · Mathematics 2009-06-15 Carl Lindberg

This paper studies deep learning methodologies for portfolio optimization in the US equities market. We present a novel residual switching network that can automatically sense changes in market regimes and switch between momentum and…

Statistical Finance · Quantitative Finance 2019-10-18 Jifei Wang , Lingjing Wang

Statistical inference of the dependence between objects often relies on covariance matrices. Unless the number of features (e.g. data points) is much larger than the number of objects, covariance matrix cleaning is necessary to reduce…

Risk Management · Quantitative Finance 2021-06-09 Christian Bongiorno , Damien Challet

Recommender systems play an essential role in online services by providing personalized item lists to support users' decision-making processes. While collaborative filtering methods can achieve high accuracy, it is crucial to consider not…

Optimization and Control · Mathematics 2026-03-24 Tomoya Yanagi , Shunnosuke Ikeda , Ken Kobayashi , Yuichi Takano

In this research paper, we investigate into a paper named "A Deep Reinforcement Learning Framework for the Financial Portfolio Management Problem" [arXiv:1706.10059]. It is a portfolio management problem which is solved by deep learning…

Portfolio Management · Quantitative Finance 2024-09-16 Jinyang Li

Wireless Sensor Networks (WSNs) enable a wealth of new applications where remote estimation is essential. Individual sensors simultaneously sense a dynamic process and transmit measured information over a shared channel to a central fusion…

Optimization and Control · Mathematics 2016-11-18 Yilin Mo , Emanuele Garone , Alessandro Casavola , Bruno Sinopoli

Soft filter pruning~(SFP) has emerged as an effective pruning technique for allowing pruned filters to update and the opportunity for them to regrow to the network. However, this pruning strategy applies training and pruning in an…

Computer Vision and Pattern Recognition · Computer Science 2023-12-20 Jingyang Xiang , Zhuangzhi Chen , Jianbiao Mei , Siqi Li , Jun Chen , Yong Liu

Selecting the optimal Markowitz porfolio depends on estimating the covariance matrix of the returns of $N$ assets from $T$ periods of historical data. Problematically, $N$ is typically of the same order as $T$, which makes the sample…

Applications · Statistics 2020-12-29 Raj Agrawal , Uma Roy , Caroline Uhler

Mechanism design in resource allocation studies dividing limited resources among self-interested agents whose satisfaction with the allocation depends on privately held utilities. We consider the problem in a payment-free setting, with the…

Computer Science and Game Theory · Computer Science 2025-01-03 Sihan Zeng , Sujay Bhatt , Alec Koppel , Sumitra Ganesh

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

This thesis mainly focuses on two problems in capital structure and individual's life-cycle portfolio choice. In the first problem, we derive a stochastic control model to optimize banks' dividend and recapitalization policies and calibrate…

Mathematical Finance · Quantitative Finance 2021-07-07 Shan Huang

We propose a novel algorithm, TR-SVR, for solving unconstrained stochastic optimization problems. This method builds on the trust-region framework, which effectively balances local and global exploration in optimization tasks. TR-SVR…

Optimization and Control · Mathematics 2024-12-03 Xinshou Zheng

Portfolio optimization aims at constructing a realistic portfolio with significant out-of-sample performance, which is typically measured by the out-of-sample Sharpe ratio. However, due to in-sample optimism, it is inappropriate to use the…

Statistics Theory · Mathematics 2025-07-11 Xuran Meng , Yuan Cao , Weichen Wang

Stock portfolio optimization is the process of continuous reallocation of funds to a selection of stocks. This is a particularly well-suited problem for reinforcement learning, as daily rewards are compounding and objective functions may…

Portfolio Management · Quantitative Finance 2022-07-06 Charl Maree , Christian W. Omlin

Nowadays, the bulk of Internet traffic uses TCP protocol for reliable transmission. But the standard TCP's performance is very poor in High Speed Networks (HSN) and hence the core gigabytes links are usually underutilization. This problem…

Networking and Internet Architecture · Computer Science 2021-03-18 Shahram Jamali , Mir Mahmoud Talebi , Reza Fotohi

The increased temporal and spectral resolution of oversampled systems allows many sensor-signal analysis tasks to be performed (e.g. detection, classification and tracking) using a filterbank of low-pass digital differentiators. Such…

Systems and Control · Electrical Eng. & Systems 2021-10-04 Hugh L. Kennedy

Markowitz (1952, 1959) laid down the ground-breaking work on the mean-variance analysis. Under his framework, the theoretical optimal allocation vector can be very different from the estimated one for large portfolios due to the intrinsic…

Portfolio Management · Quantitative Finance 2008-12-16 Jianqing Fan , Jingjin Zhang , Ke Yu