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We study the design of portfolios under a minimum risk criterion. The performance of the optimized portfolio relies on the accuracy of the estimated covariance matrix of the portfolio asset returns. For large portfolios, the number of…

投资组合管理 · 定量金融 2016-01-20 Liusha Yang , Romain Couillet , Matthew R. McKay

This paper is concerned with portfolio optimization models for creating high-quality lists of recommended items to balance the accuracy and diversity of recommendations. However, the statistics (i.e., expectation and covariance of ratings)…

信息检索 · 计算机科学 2024-10-01 Tomoya Yanagi , Shunnosuke Ikeda , Yuichi Takano

The field of portfolio selection is an active research topic, which combines elements and methodologies from various fields, such as optimization, decision analysis, risk management, data science, forecasting, etc. The modeling and…

投资组合管理 · 定量金融 2020-10-28 A. Georgantas

According to recent findings [1,2], empirical covariance matrices deduced from financial return series contain such a high amount of noise that, apart from a few large eigenvalues and the corresponding eigenvectors, their structure can…

统计力学 · 物理学 2009-11-07 Szilard Pafka , Imre Kondor

This paper is concerned with optimizing the global minimum-variance portfolio's (GMVP) weights in high-dimensional settings where both observation and population dimensions grow at a bounded ratio. Optimizing the GMVP weights is highly…

信号处理 · 电气工程与系统科学 2022-04-13 Maaz Mahadi , Tarig Ballal , Muhammad Moinuddin , Tareq Y. Al-Naffouri , Ubaid Al-Saggaf

Recent studies stressed the fact that covariance matrices computed from empirical financial time series appear to contain a high amount of noise. This makes the classical Markowitz Mean-Variance Optimization model unable to correctly…

最优化与控制 · 数学 2021-03-03 Justo Puerto , Federica Ricca , Moisés Rodríguez-Madrena , Andrea Scozzari

We introduce a covariance matrix estimator that both takes into account the heteroskedasticity of financial returns (by using an exponentially weighted moving average) and reduces the effective dimensionality of the estimation (and hence…

统计力学 · 物理学 2008-12-02 Szilard Pafka , Marc Potters , Imre Kondor

We study empirical covariance matrices in finance. Due to the limited amount of available input information, these objects incorporate a huge amount of noise, so their naive use in optimization procedures, such as portfolio selection, may…

物理与社会 · 物理学 2008-12-02 Gabor Papp , Szilard Pafka , Maciej A. Nowak , Imre Kondor

This study first reviews fuzzy random Portfolio selection theory and describes the concept of portfolio optimization model as a useful instrument for helping finance practitioners and researchers. Second, this paper specifically aims at…

最优化与控制 · 数学 2014-02-18 Mir Ehsan Hesam Sadati , Ali Doniavi

In this paper, we document a novel machine learning based bottom-up approach for static and dynamic portfolio optimization on, potentially, a large number of assets. The methodology applies to general constrained optimization problems and…

数理金融 · 定量金融 2020-11-24 Qing Yang , Zhenning Hong , Ruyan Tian , Tingting Ye , Liangliang Zhang

The global minimum-variance portfolio is a typical choice for investors because of its simplicity and broad applicability. Although it requires only one input, namely the covariance matrix of asset returns, estimating the optimal solution…

投资组合管理 · 定量金融 2021-01-08 Sven Husmann , Antoniya Shivarova , Rick Steinert

Robust optimization provides a principled framework for decision-making under uncertainty, with broad applications in finance, engineering, and operations research. In portfolio optimization, uncertainty in expected returns and covariances…

统计金融 · 定量金融 2025-10-15 Daniel Cunha Oliveira , Grover Guzman , Nick Firoozye

We develop a rotation-invariant neural network that provides the global minimum-variance portfolio by jointly learning how to lag-transform historical returns and marginal volatilities and how to regularise the eigenvalues of large equity…

投资组合管理 · 定量金融 2026-04-22 Christian Bongiorno , Efstratios Manolakis , Rosario Nunzio Mantegna

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

Minimum-variance portfolio optimizations rely on accurate covariance estimator to obtain optimal portfolios. However, it usually suffers from large error from sample covariance matrix when the sample size $n$ is not significantly larger…

投资组合管理 · 定量金融 2022-04-04 JunTao Duan , Ionel Popescu

The use of improved covariance matrix estimators as an alternative to the sample estimator is considered an important approach for enhancing portfolio optimization. Here we empirically compare the performance of 9 improved covariance…

投资组合管理 · 定量金融 2010-04-27 Ester Pantaleo , Michele Tumminello , Fabrizio Lillo , Rosario N. Mantegna

We extend Relative Robust Portfolio Optimisation models to allow portfolios to optimise their distance to a set of benchmarks. Portfolio managers are also given the option of computing regret in a way which is more in line with market…

投资组合管理 · 定量金融 2017-01-12 Gonçalo Simões , Mark McDonald , Stacy Williams , Daniel Fenn , Raphael Hauser

The measure of portfolio risk is an important input of the Markowitz framework. In this study, we explored various methods to obtain a robust covariance estimators that are less susceptible to financial data noise. We evaluated the…

投资组合管理 · 定量金融 2024-06-04 Qiqin Zhou

This thesis investigates Merton's portfolio problem under two different rough Heston models, which have a non-Markovian structure. The motivation behind this choice of problem is due to the recent discovery and success of rough volatility…

数理金融 · 定量金融 2019-09-09 Benjamin James Duthie

One of the major challenges in multivariate analysis is the estimation of population covariance matrix from sample covariance matrix (SCM). Most recent covariance matrix estimators use either shrinkage transformations or asymptotic results…

统计方法学 · 统计学 2019-12-10 Samruddhi Deshmukh , Amartansh Dubey
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