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Learning to sample from complex unnormalized distributions is a fundamental challenge in computational physics and machine learning. While score-based and variational methods have achieved success in continuous domains, extending them to…

Machine Learning · Statistics 2026-03-11 Lei Li , Zhen Wang , Lishuo Zhang

Optimal portfolio selection problems are determined by the (unknown) parameters of the data generating process. If an investor wants to realise the position suggested by the optimal portfolios, he/she needs to estimate the unknown…

Portfolio Management · Quantitative Finance 2023-04-19 Taras Bodnar , Holger Dette , Nestor Parolya , Erik Thorsén

As the cornerstone of modern portfolio theory, Markowitz's mean-variance optimization is considered a major model adopted in portfolio management. However, due to the difficulty of estimating its parameters, it cannot be applied to all…

Machine Learning · Computer Science 2019-11-15 Mengying Zhu , Xiaolin Zheng , Yan Wang , Yuyuan Li , Qianqiao Liang

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

This paper proposes a supervised training algorithm for learning stochastic resource allocation policies with generative diffusion models (GDMs). We formulate the allocation problem as the maximization of an ergodic utility function subject…

Machine Learning · Computer Science 2025-09-23 Yigit Berkay Uslu , Samar Hadou , Shirin Saeedi Bidokhti , Alejandro Ribeiro

We propose a hybrid generative model for efficient sampling of high-dimensional, multimodal probability distributions for Bayesian inference. Traditional Monte Carlo methods, such as the Metropolis-Hastings and Langevin Monte Carlo sampling…

Machine Learning · Statistics 2025-05-14 Hoang Tran , Zezhong Zhang , Feng Bao , Dan Lu , Guannan Zhang

Diffusion models have become a standard approach for generative modeling in continuous domains, yet their application to discrete data remains challenging. We investigate why Gaussian diffusion models with the DDPM solver struggle to sample…

Computation and Language · Computer Science 2026-05-28 Alexander Shabalin , Simon Elistratov , Viacheslav Meshchaninov , Ildus Sadrtdinov , Dmitry Vetrov

In this paper we tackle the problem of dynamic portfolio optimization, i.e., determining the optimal trading trajectory for an investment portfolio of assets over a period of time, taking into account transaction costs and other possible…

In this paper we consider a generalization of the Markowitz's Mean-Variance model under linear transaction costs and cardinality constraints. The cardinality constraints are used to limit the number of assets in the optimal portfolio. The…

Computational Engineering, Finance, and Science · Computer Science 2014-04-15 Mahdi Moeini

In matter of Portfolio selection, we consider a generalization of the Markowitz Mean-Variance model which includes buy-in threshold constraints. These constraints limit the amount of capital to be invested in each asset and prevent very…

Computational Engineering, Finance, and Science · Computer Science 2016-11-18 Hoai An Le Thi , Mahdi Moeini

Diffusion has emerged as a powerful framework for generative modeling, achieving remarkable success in applications such as image and audio synthesis. Enlightened by this progress, we propose a novel diffusion-based approach for symbolic…

Machine Learning · Computer Science 2025-06-02 Zachary Bastiani , Robert M. Kirby , Jacob Hochhalter , Shandian Zhe

The portfolio optimisation problem, first raised by Harry Markowitz in 1952, has been a fundamental and central topic to understanding the stock market and making decisions. There has been plenty of works contributing to development of the…

Portfolio Management · Quantitative Finance 2019-07-09 Xiang Meng

Geophysical inverse problems are often ill-posed and admit multiple solutions. Conventional discriminative methods typically yield a single deterministic solution, which fails to model the posterior distribution, cannot generate diverse…

Diffusion-based generative models have achieved remarkable performance across various domains, yet their practical deployment is often limited by high sampling costs. While prior work focuses on training objectives or individual solvers,…

Machine Learning · Computer Science 2026-02-16 Sangwoo Jo , Sungjoon Choi

These lecture notes introduce the statistical analysis of continuous-time generative models built from Markov dynamics. We begin with the stochastic-calculus foundations of score-based diffusion models, including time reversal, score…

Statistics Theory · Mathematics 2026-04-27 Eddie Aamari , Arthur Stéphanovitch

The paper solves the problem of optimal portfolio choice when the parameters of the asset returns distribution, like the mean vector and the covariance matrix are unknown and have to be estimated by using historical data of the asset…

Statistical Finance · Quantitative Finance 2023-04-19 David Bauder , Taras Bodnar , Nestor Parolya , Wolfgang Schmid

Dynamic contingency screening is a challenging task in dynamic security assessment, when traditional numerical approaches are computationally intensive and often not able to repeatedly solve full AC power flow for all possible contingencies…

Systems and Control · Electrical Eng. & Systems 2026-04-29 Quan Tran , Suresh S. Muknahallipatna , Dongliang Duan , Nga Nguyen

We study the consistency of sample mean-variance portfolios of arbitrarily high dimension that are based on Bayesian or shrinkage estimation of the input parameters as well as weighted sampling. In an asymptotic setting where the number of…

Portfolio Management · Quantitative Finance 2015-05-30 Francisco Rubio , Xavier Mestre , Daniel P. Palomar

Drawing from the theory of stochastic differential equations, we introduce a novel sampling method for known distributions and a new algorithm for diffusion generative models with unknown distributions. Our approach is inspired by the…

Statistics Theory · Mathematics 2024-07-12 Xicheng Zhang

We present a parsimonious neural network approach, which does not rely on dynamic programming techniques, to solve dynamic portfolio optimization problems subject to multiple investment constraints. The number of parameters of the…

Computational Finance · Quantitative Finance 2023-03-17 Pieter M. van Staden , Peter A. Forsyth , Yuying Li