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We investigate the performance of the Deep Hedging framework under training paths beyond the (finite dimensional) Markovian setup. In particular we analyse the hedging performance of the original architecture under rough volatility models…

Computational Finance · Quantitative Finance 2021-02-04 Blanka Horvath , Josef Teichmann , Zan Zuric

Throughout the past five years, the susceptibility of neural networks to minimal adversarial perturbations has moved from a peculiar phenomenon to a core issue in Deep Learning. Despite much attention, however, progress towards more robust…

Machine Learning · Statistics 2019-12-13 Wieland Brendel , Jonas Rauber , Matthias Kümmerer , Ivan Ustyuzhaninov , Matthias Bethge

In an ever expanding set of research and application areas, deep neural networks (DNNs) set the bar for algorithm performance. However, depending upon additional constraints such as processing power and execution time limits, or…

Machine Learning · Computer Science 2021-06-22 Nathan Dahlin , Krishna Chaitanya Kalagarla , Nikhil Naik , Rahul Jain , Pierluigi Nuzzo

While researchers in the asset management industry have mostly focused on techniques based on financial and risk planning techniques like Markowitz efficient frontier, minimum variance, maximum diversification or equal risk parity, in…

Machine Learning · Computer Science 2020-10-20 Eric Benhamou , David Saltiel , Sandrine Ungari , Abhishek Mukhopadhyay

We develop a portfolio allocation framework that leverages deep learning techniques to address challenges arising from high-dimensional, non-stationary, and low-signal-to-noise market information. Our approach includes a dynamic embedding…

Portfolio Management · Quantitative Finance 2025-01-31 Jinghai He , Cheng Hua , Chunyang Zhou , Zeyu Zheng

Active learning frameworks offer efficient data annotation without remarkable accuracy degradation. In other words, active learning starts training the model with a small size of labeled data while exploring the space of unlabeled data in…

Machine Learning · Computer Science 2022-04-22 Salman Mohamadi , Hamidreza Amindavar

Recent developments in deep learning techniques have motivated intensive research in machine learning-aided stock trading strategies. However, since the financial market has a highly non-stationary nature hindering the application of…

Portfolio Management · Quantitative Finance 2020-12-15 Kentaro Imajo , Kentaro Minami , Katsuya Ito , Kei Nakagawa

Deep learning models have gained great success in many real-world applications. However, most existing networks are typically designed in heuristic manners, thus lack of rigorous mathematical principles and derivations. Several recent…

Computer Vision and Pattern Recognition · Computer Science 2017-12-18 Risheng Liu , Xin Fan , Shichao Cheng , Xiangyu Wang , Zhongxuan Luo

Uncertainty estimation bears the potential to make deep learning (DL) systems more reliable. Standard techniques for uncertainty estimation, however, come along with specific combinations of strengths and weaknesses, e.g., with respect to…

Machine Learning · Computer Science 2022-05-02 Joachim Sicking , Maram Akila , Jan David Schneider , Fabian Hüger , Peter Schlicht , Tim Wirtz , Stefan Wrobel

Deep Reinforcement Learning approaches to Online Portfolio Selection have grown in popularity in recent years. The sensitive nature of training Reinforcement Learning agents implies a need for extensive efforts in market representation,…

Machine Learning · Computer Science 2024-01-17 Marc Velay , Bich-Liên Doan , Arpad Rimmel , Fabrice Popineau , Fabrice Daniel

We study the implicit bias of optimization in robust empirical risk minimization (robust ERM) and its connection with robust generalization. In classification settings under adversarial perturbations with linear models, we study what type…

Machine Learning · Computer Science 2024-06-10 Nikolaos Tsilivis , Natalie Frank , Nathan Srebro , Julia Kempe

Ensuring fairness in machine learning is a critical and challenging task, as biased data representations often lead to unfair predictions. To address this, we propose Deep Fair Learning, a framework that integrates nonlinear sufficient…

Machine Learning · Statistics 2025-04-10 Enze Shi , Linglong Kong , Bei Jiang

While deep learning models and techniques have achieved great empirical success, our understanding of the source of success in many aspects remains very limited. In an attempt to bridge the gap, we investigate the decision boundary of a…

Neural and Evolutionary Computing · Computer Science 2019-01-03 Yu Li , Lizhong Ding , Xin Gao

Financial portfolio management investment policies computed quantitatively by modern portfolio theory techniques like the Markowitz model rely on a set on assumptions that are not supported by data in high volatility markets. Hence,…

Computational Engineering, Finance, and Science · Computer Science 2024-07-22 Alejandra de la Rica Escudero , Eduardo C. Garrido-Merchan , Maria Coronado-Vaca

Multilayer networks have seen a resurgence under the umbrella of deep learning. Current deep learning algorithms train the layers of the network sequentially, improving algorithmic performance as well as providing some regularization. We…

Machine Learning · Computer Science 2016-02-22 Ke Wu , Malik Magdon-Ismail

In machine learning, there is a fundamental trade-off between ease of optimization and expressive power. Neural Networks, in particular, have enormous expressive power and yet are notoriously challenging to train. The nature of that…

Machine Learning · Computer Science 2015-11-24 Diogo Almeida , Nate Sauder

We propose a new framework for image classification with deep neural networks. The framework introduces intermediate outputs to the computational graph of a network. This enables flexible control of the computational load and balances the…

Computer Vision and Pattern Recognition · Computer Science 2018-10-03 Yue Bai , Shuvra S. Bhattacharyya , Antti P. Happonen , Heikki Huttunen

Classical portfolio optimization often requires forecasting asset returns and their corresponding variances in spite of the low signal-to-noise ratio provided in the financial markets. Modern deep reinforcement learning (DRL) offers a…

Portfolio Management · Quantitative Finance 2023-05-19 Alessio Brini , Daniele Tantari

Building on our prior explorations of convolutional neural networks (CNNs) for financial data processing, this paper introduces two significant enhancements to refine our CNN model's predictive performance and robustness for financial…

Computational Finance · Quantitative Finance 2024-08-23 Sina Montazeri , Haseebullah Jumakhan , Sonia Abrasiabian , Amir Mirzaeinia

This work proposes a new framework for deep learning that has been particularly tailored for hyperspectral image classification. We learn multiple levels of dictionaries in a robust fashion. The last layer is discriminative that learns a…

Image and Video Processing · Electrical Eng. & Systems 2019-12-24 Vanika Singhal , Hemant K. Aggarwal , Snigdha Tariyal , Angshul Majumdar
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