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We use pathwise It\^o calculus to prove two strictly pathwise versions of the master formula in Fernholz' stochastic portfolio theory. Our first version is set within the framework of F\"ollmer's pathwise It\^o calculus and works for…

投资组合管理 · 定量金融 2018-05-25 Alexander Schied , Leo Speiser , Iryna Voloshchenko

In this paper, we consider the portfolio optimization problem in a financial market under a general utility function. Empirical results suggest that if a significant market fluctuation occurs, invested wealth tends to have a notable change…

投资组合管理 · 定量金融 2022-01-26 Minglian Lin , Indranil SenGupta

The portfolio optimization problem is a basic problem of financial analysis. In the study, an optimization model for constructing an options portfolio with a certain payoff function has been proposed. The model is formulated as an integer…

证券定价 · 定量金融 2017-07-10 Margarita E. Fatyanova , Mikhail E. Semenov

We provide a simple and straightforward approach to a continuous-time version of Cover's universal portfolio strategies within the model-free context of F\"ollmer's pathwise It\^o calculus. We establish the existence of the universal…

数理金融 · 定量金融 2025-08-27 Xiyue Han , Alexander Schied

Solutions of stochastic Volterra (integral) equations are not Markov processes, and therefore classical methods, like dynamic programming, cannot be used to study optimal control problems for such equations. However, we show that by using…

最优化与控制 · 数学 2015-08-28 Nacira Agram , Bernt Øksendal

Insider information and model uncertainty are two unavoidable problems for the portfolio selection theory in reality. This paper studies the robust optimal portfolio strategy for an investor who owns general insider information under model…

数值分析 · 数学 2022-07-11 Chao Yu , Yuhan Cheng

Functional It^o calculus is based on an extension of the classical It^o calculus to functionals depending on the entire past evolution of the underlying paths and not only on its current value. The calculus builds on Follmer's…

概率论 · 数学 2025-02-11 Siboniso Confrence Nkosi , Farai Julius Mhlanga

This paper introduces a new functional optimization approach to portfolio optimization problems by treating the unknown weight vector as a function of past values instead of treating them as fixed unknown coefficients in the majority of…

投资组合管理 · 定量金融 2020-12-10 Ka Wai Tsang , Zhaoyi He

Financial portfolio optimization is a widely studied problem in mathematics, statistics, financial and computational literature. It adheres to determining an optimal combination of weights associated with financial assets held in a…

投资组合管理 · 定量金融 2013-01-21 Ankit Dangi

We consider optimal investment problems for a diffusion market model with non-observable random drifts that evolve as an Ito's process. Admissible strategies do not use direct observations of the market parameters, but rather use historical…

投资组合管理 · 定量金融 2008-12-02 Nikolai Dokuchaev

We investigate Wiener-transformable markets, where the driving process is given by an adapted transformation of a Wiener process. This includes processes with long memory, like fractional Brownian motion and related processes, and, in…

概率论 · 数学 2018-08-30 Elena Boguslavskaya , Yuliya Mishura , Georgiy Shevchenko

We consider portfolio optimization in futures markets. We model the entire futures price curve at once as a solution of a stochastic partial differential equation. The agents objective is to maximize her utility from the final wealth when…

投资组合管理 · 定量金融 2012-04-13 Fred Espen Benth , Jukka Lempa

Optimal execution of a portfolio have been a challenging problem for institutional investors. Traders face the trade-off between average trading price and uncertainty, and traditional methods suffer from the curse of dimensionality. Here,…

投资组合管理 · 定量金融 2023-06-16 Xiaoyue Li , John M. Mulvey

Integer variables allow the treatment of some portfolio optimization problems in a more realistic way and introduce the possibility of adding some natural features to the model. We propose an algebraic approach to maximize the expected…

最优化与控制 · 数学 2010-04-07 F. Castro , J. Gago , I. Hartillo , J. Puerto , J. M. Ucha

We study an optimal portfolio problem designed for an agent operating in intraday electricity markets. The investor is allowed to trade in a single risky asset modelling the continuously traded power and aims to maximize the expected…

投资组合管理 · 定量金融 2018-07-06 Marco Piccirilli , Tiziano Vargiolu

This paper studies a portfolio optimization problem in a discrete-time Markovian model of a financial market, in which asset price dynamics depend on an external process of economic factors. There are transaction costs with a structure that…

投资组合管理 · 定量金融 2008-12-02 Jan Palczewski , Lukasz Stettner

We investigate the optimal rate of convergence in the multidimensional normal approximation of vector-valued Wiener-Ito integrals of which components all belong to the same fixed Wiener chaos. Combining Malliavin calculus, Stein's method…

概率论 · 数学 2023-03-07 Huiping Chen

We consider the problem of optimal hedging in an incomplete market with an established pricing kernel. In such a market, prices are uniquely determined, but perfect hedges are usually not available. We work in the rather general setting of…

数理金融 · 定量金融 2020-09-02 George Bouzianis , Lane P. Hughston

We present a non-probabilistic, pathwise approach to continuous-time finance based on causal functional calculus. We introduce a definition of self-financing, free from any integration concept and show that the value of a self-financing…

数理金融 · 定量金融 2022-12-05 Henry Chiu , Rama Cont

We aim to construct a general framework for portfolio management in continuous time, encompassing both stocks and bonds. In these lecture notes we give an overview of the state of the art of optimal bond portfolios and we re-visit main…

最优化与控制 · 数学 2008-12-10 Ivar Ekeland , Erik Taflin
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