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Portfolio management is an essential part of investment decision-making. However, traditional methods often fail to deliver reasonable performance. This problem stems from the inability of these methods to account for the unique…

Portfolio Management · Quantitative Finance 2023-08-17 Petr Sokerin , Kristian Kuznetsov , Elizaveta Makhneva , Alexey Zaytsev

Topological Data Analysis (TDA) is a recent approach to analyze data sets from the perspective of their topological structure. Its use for time series data has been limited. In this work, a system developed for a leading provider of cloud…

Machine Learning · Computer Science 2020-09-09 Rodrigo Rivera-Castro , Aleksandr Pletnev , Polina Pilyugina , Grecia Diaz , Ivan Nazarov , Wanyi Zhu , Evgeny Burnaev

Topological Data Analysis (TDA), an emerging field in investment sciences, harnesses mathematical methods to extract data features based on shape, offering a promising alternative to classical portfolio selection methodologies. We utilize…

Portfolio Management · Quantitative Finance 2026-01-08 Anubha Goel , Amita Sharma , Juho Kanniainen

Portfolio management is essential for any investment decision. Yet, traditional methods in the literature are ill-suited for the characteristics and dynamics of cryptocurrencies. This work presents a method to build an investment portfolio…

Portfolio Management · Quantitative Finance 2020-09-09 Rodrigo Rivera-Castro , Polina Pilyugina , Evgeny Burnaev

Stochastic Dominance (SD) theory provides a rigorous framework for selecting superior assets tailored to the asset allocation needs of investors with varying risk preferences (i.e., risk-averse, risk-seeking, and risk-neutral). However,…

Machine Learning · Statistics 2026-05-26 Hua Li , Xue Jia , Yilin Kang , Wing-Keung Wong

Topological data analysis (TDA) has emerged as one of the most promising techniques to reconstruct the unknown shapes of high-dimensional spaces from observed data samples. TDA, thus, yields key shape descriptors in the form of persistent…

Machine Learning · Statistics 2017-11-15 Wei Guo , Krithika Manohar , Steven L. Brunton , Ashis G. Banerjee

Topological Data Analysis (TDA) has recently gained significant attention in the field of financial prediction. However, the choice of point cloud construction methods, topological feature representations, and classification models has a…

Machine Learning · Computer Science 2024-11-22 Dazhi Huang , Pengcheng Xu , Xiaocheng Huang , Jiayi Chen

In this research, we introduce a novel methodology for the index tracking problem with sparse portfolios by leveraging topological data analysis (TDA). Utilizing persistence homology to measure the riskiness of assets, we introduce a…

Computational Engineering, Finance, and Science · Computer Science 2023-10-17 Anubha Goel , Puneet Pasricha , Juho Kanniainen

We aim to cluster financial assets in order to identify a small set of stocks to approximate the level of diversification of the whole universe of stocks. We develop a data-driven approach to clustering based on a correlation blockmodel in…

Portfolio Management · Quantitative Finance 2021-08-16 Wenpin Tang , Xiao Xu , Xun Yu Zhou

This study investigates whether Topological Data Analysis (TDA) can provide additional insights beyond traditional statistical methods in clustering currency behaviours. We focus on the foreign exchange (FX) market, which is a complex…

Machine Learning · Statistics 2025-10-23 Pattravadee de Favereau de Jeneret , Ioannis Diamantis

Topological Data Analysis (TDA) is an emergent field that aims to discover topological information hidden in a dataset. TDA tools have been commonly used to create filters and topological descriptors to improve Machine Learning (ML)…

Machine Learning · Computer Science 2021-02-09 Rolando Kindelan , José Frías , Mauricio Cerda , Nancy Hitschfeld

In this paper, we study asset selection methods to construct a sparse index tracking portfolio. For its advantage over full replication portfolio, the concept of sparse index tracking portfolio has significant attention in the field of…

Computational Engineering, Finance, and Science · Computer Science 2024-05-10 Yutaka Sakurai , Daiki Wakabayashi , Fumio Ishizaki

Topological Data Analysis (TDA) is an emergent field that aims to discover topological information hidden in a dataset. TDA tools have been commonly used to create filters and topological descriptors to improve Machine Learning (ML)…

Machine Learning · Computer Science 2022-02-07 Rolando Kindelan , José Frías , Mauricio Cerda , Nancy Hitschfeld

Topological data analysis (TDA) provides a growing body of tools for computing geometric and topological information about spaces from a finite sample of points. We present a new adaptive algorithm for finding provably dense samples of…

Algebraic Topology · Mathematics 2018-10-22 Emilie Dufresne , Parker B. Edwards , Heather A. Harrington , Jonathan D. Hauenstein

Topological Data Analysis (TDA) is a recent approach to analyze data sets from the perspective of their topological structure. Its use for time series data has been limited to the field of financial time series primarily and as a method for…

Machine Learning · Computer Science 2019-06-18 Rodrigo Rivera-Castro , Polina Pilyugina , Alexander Pletnev , Ivan Maksimov , Wanyi Wyz , Evgeny Burnaev

Topological Data Analysis (TDA) has emerged as a powerful framework for extracting robust and interpretable features from noisy high-dimensional data. In the context of Social Choice Theory, where preference profiles and collective…

Algebraic Topology · Mathematics 2025-07-22 Athanasios Andrikopoulos , Nikolaos Sampanis

Optimizing portfolio performance is a fundamental challenge in financial modeling, requiring the integration of advanced clustering techniques and data-driven optimization strategies. This paper introduces a comparative backtesting approach…

Machine Learning · Computer Science 2025-01-23 Keon Vin Park

Sparse index tracking is a prominent passive portfolio management strategy that constructs a sparse portfolio to track a financial index. A sparse portfolio is preferable to a full portfolio in terms of reducing transaction costs and…

Portfolio Management · Quantitative Finance 2024-03-19 Eisuke Yamagata , Shunsuke Ono

This paper examines the implementation of a statistical arbitrage trading strategy based on co-integration relationships where we discover candidate portfolios using multiple factors rather than just price data. The portfolio selection…

Portfolio Management · Quantitative Finance 2014-05-13 Wenbin Zhang , Zhen Dai , Bindu Pan , Milan Djabirov

Topological Data Analysis (TDA) is a modern approach to Data Analysis focusing on the topological features of data; it has been widely studied in recent years and used extensively in Biology, Physics, and many other areas. However,…

Mathematical Finance · Quantitative Finance 2023-07-11 Miguel A. Ruiz-Ortiz , José Carlos Gómez-Larrañaga , Jesús Rodríguez-Viorato
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