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Two-stage stochastic programming is a popular framework for optimization under uncertainty, where decision variables are split between first-stage decisions, and second-stage (or recourse) decisions, with the latter being adjusted after…

Optimization and Control · Mathematics 2024-03-19 Antonio Alcántara , Carlos Ruiz , Calvin Tsay

In this paper, a tractable methodology is proposed to approximate stochastic optimal feedback treatment in the context of mixed immuno-chemo therapy of cancer. The method uses a fixed-point value iteration that approximately solves a…

Systems and Control · Computer Science 2020-10-26 Mazen Alamir

This article describes two Monte Carlo methods for calculating confidence intervals on cumulative density function (CDF) based multivariate normal quantiles that allows for controlling the tail regions of a multivariate distribution where…

Methodology · Statistics 2024-04-11 Adam Watts , Thomas Thompson , Dustin Harvey

We develop a simulation scheme for a class of spatial stochastic processes called volatility modulated moving averages. A characteristic feature of this model is that the behaviour of the moving average kernel at zero governs the roughness…

Computation · Statistics 2021-01-06 Claudio Heinrich , Mikko S. Pakkanen , Almut E. D. Veraart

Genomic data are subject to various sources of confounding, such as demographic variables, biological heterogeneity, and batch effects. To identify genomic features associated with a variable of interest in the presence of confounders, the…

Methodology · Statistics 2025-12-08 Asmita Roy , Jun Chen , Xianyang Zhang

We consider the problem of inferring the interaction kernel of stochastic interacting particle systems from observations of a single particle. We adopt a semi-parametric approach and represent the interaction kernel in terms of a…

Statistics Theory · Mathematics 2025-10-31 Grigorios A. Pavliotis , Andrea Zanoni

The theme of the present paper is numerical integration of $C^r$ functions using randomized methods. We consider variance reduction methods that consist in two steps. First the initial interval is partitioned into subintervals and the…

Numerical Analysis · Mathematics 2023-06-21 Leszek Plaskota , Paweł Przybyłowicz , Łukasz Stępień

We propose novel methods for Conditional Value-at-Risk (CVaR) estimation for nonlinear systems under high-dimensional dependent random inputs. We develop a novel DD-GPCE-Kriging surrogate that merges dimensionally decomposed generalized…

Numerical Analysis · Mathematics 2023-03-14 Dongjin Lee , Boris Kramer

This paper studies the continuous time mean-variance portfolio selection problem with one kind of non-linear wealth dynamics. To deal the expectation constraint, an auxiliary stochastic control problem is firstly solved by two new…

Mathematical Finance · Quantitative Finance 2022-11-03 Shaolin Ji , Hanqing Jin , Xiaomin Shi

We propose and analyze a mixed finite element method for the spatial approximation of a time-fractional Fokker--Planck equation in a convex polyhedral domain, where the given driving force is a function of space. Taking into account the…

Numerical Analysis · Mathematics 2024-03-26 Samir Karaa , Kassem Mustapha , Naveed Ahmed

We present a numerically efficient approach for learning a risk-neutral measure for paths of simulated spot and option prices up to a finite horizon under convex transaction costs and convex trading constraints. This approach can then be…

Computational Finance · Quantitative Finance 2021-07-15 Hans Buehler , Phillip Murray , Mikko S. Pakkanen , Ben Wood

In this paper, we investigate and analyze numerical solutions for the Volterra integrodifferential equations with tempered multi-term kernels. Firstly we derive some regularity estimates of the exact solution. Then a temporal-discrete…

Numerical Analysis · Mathematics 2023-05-03 Wenlin Qiu

Risk management in dynamic decision problems is a primary concern in many fields, including financial investment, autonomous driving, and healthcare. The mean-variance function is one of the most widely used objective functions in risk…

Machine Learning · Computer Science 2018-11-05 Bo Liu , Tengyang Xie , Yangyang Xu , Mohammad Ghavamzadeh , Yinlam Chow , Daoming Lyu , Daesub Yoon

We introduce a numerical algorithm to stochastically sample the dual fermion perturbation series around the dynamical mean field theory, generating all topologies of two-particle interaction vertices. We show results in the weak and strong…

Strongly Correlated Electrons · Physics 2016-07-07 Sergei Iskakov , Andrey E. Antipov , Emanuel Gull

We present a method to compute the stochastic reachability safety probabilities for high-dimensional stochastic dynamical systems. Our approach takes advantage of a nonparametric learning technique known as conditional distribution…

Systems and Control · Electrical Eng. & Systems 2020-10-19 Adam J. Thorpe , Vignesh Sivaramakrishnan , Meeko M. K. Oishi

In high-stakes machine learning applications, it is crucial to not only perform well on average, but also when restricted to difficult examples. To address this, we consider the problem of training models in a risk-averse manner. We propose…

Machine Learning · Computer Science 2020-11-09 Sebastian Curi , Kfir. Y. Levy , Stefanie Jegelka , Andreas Krause

A stochastic Forward-Backward algorithm with a constant step is studied. At each time step, this algorithm involves an independent copy of a couple of random maximal monotone operators. Defining a mean operator as a selection integral, the…

Optimization and Control · Mathematics 2018-04-05 Pascal Bianchi , Walid Hachem , Adil Salim

This paper is concerned with the maximum principle and dynamic programming principle for mean-variance portfolio selection of jump diffusions and their relationship. First, the optimal portfolio and efficient frontier of the problem are…

Portfolio Management · Quantitative Finance 2025-08-05 Qiyue Zhang , Jingtao Shi

The second in a two-part series, this paper extends the 3rd-order Spectral Representation Method for simulation of ergodic multi-variate stochastic processes according to a prescribed cross power spectral density and cross bispectral…

Statistics Theory · Mathematics 2019-11-26 Lohit Vandanapu , Michael D. Shields

This paper uses simulation-based portfolio optimization to mitigate the left tail risk of the portfolio. The contribution is twofold. (i) We propose the Markov regime-switching GARCH model with multivariate normal tempered stable innovation…

Risk Management · Quantitative Finance 2023-02-03 Cheng Peng , Young Shin Kim , Stefan Mittnik