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In this paper we consider the strategic asset allocation of an insurance company. This task can be seen as a special case of portfolio optimization. In the 1950s, Markowitz proposed to formulate portfolio optimization as a bicriteria…

Computational Engineering, Finance, and Science · Computer Science 2021-03-23 Kerstin Dächert , Ria Grindel , Elisabeth Leoff , Jonas Mahnkopp , Florian Schirra , Jörg Wenzel

This paper proposes the Proximal Iteratively REweighted (PIRE) algorithm for solving a general problem, which involves a large body of nonconvex sparse and structured sparse related problems. Comparing with previous iterative solvers for…

Numerical Analysis · Computer Science 2014-04-29 Canyi Lu , Yunchao Wei , Zhouchen Lin , Shuicheng Yan

The input to the Multiway Cut problem is a weighted undirected graph, with nonnegative edge weights, and $k$ designated terminals. The goal is to partition the vertices of the graph into $k$ parts, each containing exactly one of the…

Data Structures and Algorithms · Computer Science 2026-03-31 Joshua Brakensiek , Neng Huang , Aaron Potechin , Uri Zwick

We investigate the optimal portfolio deleveraging (OPD) problem with permanent and temporary price impacts, where the objective is to maximize equity while meeting a prescribed debt/equity requirement. We take the real situation with cross…

Optimization and Control · Mathematics 2021-01-18 Hezhi Luo , Yuanyuan Chen , Xianye Zhang , Duan Li , Huixian Wu

Multi-objective portfolio optimisation is a critical problem researched across various fields of study as it achieves the objective of maximising the expected return while minimising the risk of a given portfolio at the same time. However,…

Machine Learning · Computer Science 2023-04-14 Sonia Bullah , Terence L. van Zyl

Considering the shortcomings of the traditional sample covariance matrix estimation, this paper proposes an improved global minimum variance portfolio model and named spectral corrected and regularized global minimum variance portfolio…

Applications · Statistics 2023-08-30 Hua Li , Jiafu Huang

Optimization problems involving mixed variables (i.e., variables of numerical and categorical nature) can be challenging to solve, especially in the presence of mixed-variable constraints. Moreover, when the objective function is the result…

Optimization and Control · Mathematics 2024-12-12 Mengjia Zhu , Alberto Bemporad

Turnpike theorems state that if an investor's utility is asymptotically equivalent to a power utility, then the optimal investment strategy converges to the CRRA strategy as the investment horizon tends to infinity. This paper aims to…

Portfolio Management · Quantitative Finance 2025-12-02 Hiroki Yamamichi

Successful implementations of quantum technologies require protocols and algorithms that use as few quantum resources as possible. However, many important quantum operations, such as continuous rotation gates in quantum computing or…

Quantum Physics · Physics 2025-01-09 Bálint Koczor

In this paper, we consider a class of structured fractional programs, where the numerator part is the sum of a block-separable (possibly nonsmooth nonconvex) function and a locally Lipschitz differentiable (possibly nonconvex) function,…

Optimization and Control · Mathematics 2024-03-26 Junpeng Zhou , Na Zhang , Qia Li

A drawdown constraint forces the current wealth to remain above a given function of its maximum to date. We consider the portfolio optimisation problem of maximising the long-term growth rate of the expected utility of wealth subject to a…

Portfolio Management · Quantitative Finance 2013-04-23 Vladimir Cherny , Jan Obloj

In this paper, we consider a broad class of nonsmooth and nonconvex fractional programs, where the numerator can be written as the sum of a continuously differentiable convex function whose gradient is Lipschitz continuous and a proper…

Optimization and Control · Mathematics 2022-01-19 Radu Ioan Boţ , Minh N. Dao , Guoyin Li

The Maximum Common Subgraph is a computationally challenging problem with countless practical applications. Even if it has been long proven NP-hard, its importance still motivates searching for exact solutions. This work starts by…

Data Structures and Algorithms · Computer Science 2020-11-09 Andrea Marcelli , Stefano Quer , Giovanni Squillero

In this paper, we consider a class of single-ratio fractional minimization problems, where both the numerator and denominator of the objective are convex functions satisfying positive homogeneity. Many nonsmooth optimization problems on the…

Optimization and Control · Mathematics 2025-10-23 Anna Qi , Jianfeng Huang , Lihua Yang , Chao Huang

In this paper we show how to implement in a simple way some complex real-life constraints on the portfolio optimization problem, so that it becomes amenable to quantum optimization algorithms. Specifically, first we explain how to obtain…

Portfolio Management · Quantitative Finance 2021-08-23 Samuel Palmer , Serkan Sahin , Rodrigo Hernandez , Samuel Mugel , Roman Orus

We solve the (weighted) sum-rate maximization problem over the set of achievable rates characterized by a nonlinear spectral radius function. This set has been recently shown to be convex in some practically relevant settings in modern…

Optimization and Control · Mathematics 2026-02-26 Hiroki Kuroda , Renato Luis Garrido Cavalcante

We consider the following multi-component sparse PCA problem: given a set of data points, we seek to extract a small number of sparse components with disjoint supports that jointly capture the maximum possible variance. These components can…

Modern large scale machine learning applications require stochastic optimization algorithms to be implemented on distributed computational architectures. A key bottleneck is the communication overhead for exchanging information such as…

Machine Learning · Computer Science 2017-10-31 Jianqiao Wangni , Jialei Wang , Ji Liu , Tong Zhang

This paper presents a new variable selection approach integrated with Gaussian process (GP) regression. We consider a sparse projection of input variables and a general stationary covariance model that depends on the Euclidean distance…

Machine Learning · Computer Science 2020-08-26 Chiwoo Park , David J. Borth , Nicholas S. Wilson , Chad N. Hunter

We provide analytical results for a static portfolio optimization problem with two coherent risk measures. The use of two risk measures is motivated by joint decision-making for portfolio selection where the risk perception of the portfolio…

Portfolio Management · Quantitative Finance 2021-01-19 Tahsin Deniz Aktürk , Çağın Ararat