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The high sensitivity of optimized portfolios to estimation errors has prevented their practical application. To mitigate this sensitivity, we propose a new portfolio model called a Deeply Equal-Weighted Subset Portfolio (DEWSP). DEWSP is a…

Portfolio Management · Quantitative Finance 2020-06-26 Sang Il Lee

This paper presents an evolutionary algorithm with a new goal-sequence domination scheme for better decision support in multi-objective optimization. The approach allows the inclusion of advanced hard/soft priority and constraint…

Artificial Intelligence · Computer Science 2011-06-02 E. F. Khor , T. H. Lee , R. Sathikannan , K. C. Tan

In this paper we model benchmark beating with the increasing convex order (ICX order). The mean constraint in the mean-variance theory of portfolio selection can be regarded as beating a constant. We then investigate the problem of…

Portfolio Management · Quantitative Finance 2023-11-06 Jianming Xia

Two-stage stochastic optimization is a framework for modeling uncertainty, where we have a probability distribution over possible realizations of the data, called scenarios, and decisions are taken in two stages: we make first-stage…

Data Structures and Algorithms · Computer Science 2023-10-25 Andre Linhares , Chaitanya Swamy

Biased stochastic estimators, such as finite-differences for noisy gradient estimation, often contain parameters that need to be properly chosen to balance impacts from the bias and the variance. While the optimal order of these parameters…

Methodology · Statistics 2019-02-14 Henry Lam , Xinyu Zhang , Xuhui Zhang

Recent policy optimization approaches (Schulman et al., 2015a; 2017) have achieved substantial empirical successes by constructing new proxy optimization objectives. These proxy objectives allow stable and low variance policy learning, but…

Machine Learning · Computer Science 2020-02-24 Marcin B. Tomczak , Dongho Kim , Peter Vrancx , Kee-Eung Kim

We develop the method of stochastic modified equations (SME), in which stochastic gradient algorithms are approximated in the weak sense by continuous-time stochastic differential equations. We exploit the continuous formulation together…

Machine Learning · Computer Science 2017-06-21 Qianxiao Li , Cheng Tai , Weinan E

We consider parallel global optimization of derivative-free expensive-to-evaluate functions, and propose an efficient method based on stochastic approximation for implementing a conceptual Bayesian optimization algorithm proposed by…

Machine Learning · Statistics 2019-05-07 Jialei Wang , Scott C. Clark , Eric Liu , Peter I. Frazier

Recently, Stochastic Variational Inference (SVI) has been increasingly attractive thanks to its ability to find good posterior approximations of probabilistic models. It optimizes the variational objective with stochastic optimization,…

Machine Learning · Computer Science 2022-03-16 Minta Liu , Suliang Bu

In this paper, a novel stochastic extra-step quasi-Newton method is developed to solve a class of nonsmooth nonconvex composite optimization problems. We assume that the gradient of the smooth part of the objective function can only be…

Optimization and Control · Mathematics 2019-10-22 Minghan Yang , Andre Milzarek , Zaiwen Wen , Tong Zhang

Processing high-volume, streaming data is increasingly common in modern statistics and machine learning, where batch-mode algorithms are often impractical because they require repeated passes over the full dataset. This has motivated…

In this paper, we study the conditional stochastic optimization (CSO) problem which covers a variety of applications including portfolio selection, reinforcement learning, robust learning, causal inference, etc. The sample-averaged gradient…

Machine Learning · Computer Science 2023-12-05 Lie He , Shiva Prasad Kasiviswanathan

In the portfolio multiobjective optimization framework, we propose to compare and choose, among all feasible asset portfolios of a given market, the one that maximizes the product of the distances between its values of risk and gain and…

Optimization and Control · Mathematics 2018-01-16 Francesco Cesarone , Lorenzo Lampariello , Simone Sagratella

In real-world decision-making, uncertainty is important yet difficult to handle. Stochastic dominance provides a theoretically sound approach for comparing uncertain quantities, but optimization with stochastic dominance constraints is…

Machine Learning · Statistics 2023-02-28 Hanjun Dai , Yuan Xue , Niao He , Bethany Wang , Na Li , Dale Schuurmans , Bo Dai

Portfolio optimization involves determining the optimal allocation of portfolio assets in order to maximize a given investment objective. Traditionally, some form of mean-variance optimization is used with the aim of maximizing returns…

Artificial Intelligence · Computer Science 2024-03-26 Fernando Acero , Parisa Zehtabi , Nicolas Marchesotti , Michael Cashmore , Daniele Magazzeni , Manuela Veloso

Motivated by applications to multi-antenna wireless networks, we propose a distributed and asynchronous algorithm for stochastic semidefinite programming. This algorithm is a stochastic approximation of a continous- time matrix exponential…

Optimization and Control · Mathematics 2016-06-15 Bruno Gaujal , Panayotis Mertikopoulos

Motivated by recent work on monotone additive statistics and questions regarding optimal risk sharing for return-based risk measures, we investigate the existence, structure, and applications of Meyer risk measures. Those are monetary risk…

Mathematical Finance · Quantitative Finance 2025-09-30 Christian Laudagé , Felix-Benedikt Liebrich

Majorization-minimization schemes are a broad class of iterative methods targeting general optimization problems, including nonconvex, nonsmooth and stochastic. These algorithms minimize successively a sequence of upper bounds of the…

Optimization and Control · Mathematics 2024-01-11 Daniela Lupu , Ion Necoara

For min-max optimization and variational inequalities problems (VIP) encountered in diverse machine learning tasks, Stochastic Extragradient (SEG) and Stochastic Gradient Descent Ascent (SGDA) have emerged as preeminent algorithms. Constant…

Machine Learning · Statistics 2023-06-30 Emmanouil-Vasileios Vlatakis-Gkaragkounis , Angeliki Giannou , Yudong Chen , Qiaomin Xie

Sample average approximation (SAA), a popular method for tractably solving stochastic optimization problems, enjoys strong asymptotic performance guarantees in settings with independent training samples. However, these guarantees are not…

Optimization and Control · Mathematics 2021-12-13 Yafei Wang , Bo Pan , Wei Tu , Peng Liu , Bei Jiang , Chao Gao , Wei Lu , Shangling Jui , Linglong Kong
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