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The classical dynamic programming-based optimal stochastic control methods fail to cope with nonseparable dynamic optimization problems as the principle of optimality no longer applies in such situations. Among these notorious nonseparable…

Portfolio Management · Quantitative Finance 2013-03-06 Xiangyu Cui , Xun Li , Duan Li

Multi-agent systems (MAS) built on Large Language Models (LLMs) are being used to approach complex problems and can surpass single model inference. However, their success hinges on navigating a fundamental cognitive tension: the need to…

Artificial Intelligence · Computer Science 2025-11-11 Wei Yang , Jiacheng Pang , Shixuan Li , Paul Bogdan , Stephen Tu , Jesse Thomason

This paper presents the Firefighter Optimization (FFO) algorithm as a new hybrid metaheuristic for optimization problems. This algorithm stems inspiration from the collaborative strategies often deployed by firefighters in firefighting…

Neural and Evolutionary Computing · Computer Science 2024-06-04 M. Z. Naser , A. Z. Naser

Constrained maximization of submodular functions poses a central problem in combinatorial optimization. In many realistic scenarios, a number of agents need to maximize multiple submodular objectives over the same ground set. We study such…

Data Structures and Algorithms · Computer Science 2024-07-22 Georgios Amanatidis , Georgios Birmpas , Philip Lazos , Stefano Leonardi , Rebecca Reiffenhäuser

Coupled matrix and tensor factorizations (CMTF) are frequently used to jointly analyze data from multiple sources, also called data fusion. However, different characteristics of datasets stemming from multiple sources pose many challenges…

Machine Learning · Computer Science 2021-04-21 Carla Schenker , Jeremy E. Cohen , Evrim Acar

Consensus-based optimization (CBO) is a versatile multi-particle optimization method for performing nonconvex and nonsmooth global optimizations in high dimensions. Proofs of global convergence in probability have been achieved for a broad…

Optimization and Control · Mathematics 2026-01-13 Jonas Beddrich , Enis Chenchene , Massimo Fornasier , Hui Huang , Barbara Wohlmuth

Prediction models are traditionally optimized independently from their use in the asset allocation decision-making process. We address this shortcoming and present a framework for integrating regression prediction models in a mean-variance…

Portfolio Management · Quantitative Finance 2022-12-01 Andrew Butler , Roy H. Kwon

We study reinforcement learning in hybrid discrete-continuous action spaces, such as settings where the discrete component selects a regime (or index) and the continuous component optimizes within it -- a structure common in robotics,…

Machine Learning · Computer Science 2026-05-15 Matias Alvo , Daniel Russo , Yash Kanoria

We investigate an optimal investment problem with a general performance criterion which, in particular, includes discontinuous functions. Prices are modeled as diffusions and the market is incomplete. We find an explicit solution for the…

Probability · Mathematics 2008-12-02 Nikolai Dokuchaev , Ulrich Haussmann

We study quantum computing algorithms for solving certain constrained resource allocation problems we coin as Mission Covering Optimization (MCO). We compare formulations of constrained optimization problems using Quantum Annealing…

Quantum Physics · Physics 2022-05-05 Massimiliano Cutugno , Annarita Giani , Paul M. Alsing , Laura Wessing , Austars Schnore

Solving combinatorial optimization problems on near-term quantum devices has gained a lot of attraction in recent years. Currently, most works have focused on single-objective problems, whereas many real-world applications need to consider…

Quantum Physics · Physics 2025-06-06 Linus Ekstrom , Hao Wang , Sebastian Schmitt

There are no computationally feasible algorithms that provide solutions to the finite horizon Risk-sensitive Constrained Markov Decision Process (Risk-CMDP) problem, even for problems with moderate horizon. With an aim to design the same,…

Optimization and Control · Mathematics 2023-03-27 Vartika Singh , Veeraruna Kavitha

Financial portfolio management is one of the problems that are most frequently encountered in the investment industry. Nevertheless, it is not widely recognized that both Kelly Criterion and Risk Parity collapse into Mean Variance under…

Portfolio Management · Quantitative Finance 2019-06-11 Yoshiharu Sato

Finding optimal solutions of conflicting objectives is a daily matter in many industrial applications, with multi-objective optimization trying to find the best solutions to them. The advent of quantum computing has led to researchers…

Safe reinforcement learning (RL) focuses on training reward-maximizing agents subject to pre-defined safety constraints. Yet, learning versatile safe policies that can adapt to varying safety constraint requirements during deployment…

Machine Learning · Computer Science 2024-05-01 Yihang Yao , Zuxin Liu , Zhepeng Cen , Jiacheng Zhu , Wenhao Yu , Tingnan Zhang , Ding Zhao

Finding an optimal balance between risk and returns in investment portfolios is a central challenge in quantitative finance, often addressed through Markowitz portfolio theory (MPT). While traditional portfolio optimization is carried out…

Portfolio Management · Quantitative Finance 2024-04-18 Francesco Catalano , Laura Nasello , Daniel Guterding

We introduce a new agentic artificial intelligence (AI) platform for portfolio management. Our architecture consists of three layers. First, two large language model (LLM) agents are assigned specialized tasks: one agent screens for firms…

Portfolio Management · Quantitative Finance 2026-03-25 Mehmet Caner , Agostino Capponi , Nathan Sun , Jonathan Y. Tan

LLM-based multi-agent systems have demonstrated strong performance across complex real-world tasks, such as software engineering, predictive modeling, and retrieval-augmented generation. Yet automating their configuration remains a…

Computation and Language · Computer Science 2026-05-14 Tom Zehle

We consider the problem of the statistical uncertainty of the correlation matrix in the optimization of a financial portfolio. We show that the use of clustering algorithms can improve the reliability of the portfolio in terms of the ratio…

Physics and Society · Physics 2008-12-02 Vincenzo Tola , Fabrizio Lillo , Mauro Gallegati , Rosario N. Mantegna

Multi-Agent Path Finding (MAPF) focuses on determining conflict-free paths for multiple agents navigating through a shared space to reach specified goal locations. This problem becomes computationally challenging, particularly when handling…

Artificial Intelligence · Computer Science 2025-07-10 Thore Gerlach , Loong Kuan Lee , Frédéric Barbaresco , Nico Piatkowski
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