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Modeling and characterizing multiple factors is perhaps the most important step in achieving excess returns over market benchmarks. Both academia and industry are striving to find new factors that have good explanatory power for future…

计算金融 · 定量金融 2022-10-31 Zikai Wei , Bo Dai , Dahua Lin

Factor analysis is a statistical technique employed to evaluate how observed variables correlate through common factors and unique variables. While it is often used to analyze price movement in the unstable stock market, it does not always…

统计金融 · 定量金融 2014-08-13 Angela Gu , Patrick Zeng

On a periodic basis, publicly traded companies are required to report fundamentals: financial data such as revenue, operating income, debt, among others. These data points provide some insight into the financial health of a company.…

机器学习 · 统计学 2018-04-27 John Alberg , Zachary C. Lipton

Factor analysis is a flexible technique for assessment of multivariate dependence and codependence. Besides being an exploratory tool used to reduce the dimensionality of multivariate data, it allows estimation of common factors that often…

统计方法学 · 统计学 2020-02-19 Kelly C. M. Gonçalves , Afonso C. B. Silva

The model-based investing using financial factors is evolving as a principal method for quantitative investment. The main challenge lies in the selection of effective factors towards excess market returns. Existing approaches, either…

人机交互 · 计算机科学 2021-04-26 Xuanwu Yue , Qiao Gu , Deyun Wang , Huamin Qu , Yong Wang

Motivated by practical applications, we explore the constrained multi-period mean-variance portfolio selection problem within a market characterized by a dynamic factor model. This model captures predictability in asset returns driven by…

投资组合管理 · 定量金融 2025-02-26 Jianjun Gao , Chengneng Jin , Yun Shi , Xiangyu Cui

On a periodic basis, publicly traded companies report fundamentals, financial data including revenue, earnings, debt, among others. Quantitative finance research has identified several factors, functions of the reported data that…

统计金融 · 定量金融 2020-07-16 Lakshay Chauhan , John Alberg , Zachary C. Lipton

Portfolio optimization is a fundamental challenge in quantitative finance, requiring robust computational tools that integrate statistical rigor with practical implementation. We present skfolio, an open-source Python library for portfolio…

机器学习 · 计算机科学 2025-07-09 Carlo Nicolini , Matteo Manzi , Hugo Delatte

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

Factor models have become a common and valued tool for understanding the risks associated with an investing strategy. In this report we describe Exabel's factor model, we quantify the fraction of the variability of the returns explained by…

应用统计 · 统计学 2022-03-24 Øyvind Grotmol , Michael Scheuerer , Kjersti Aas , Martin Jullum

Portfolio optimisation is essential in quantitative investing, but its implementation faces several practical difficulties. One particular challenge is converting optimal portfolio weights into real-life trades in the presence of realistic…

投资组合管理 · 定量金融 2024-10-01 Cristiano Arbex Valle

Income and risk coexist, yet investors are often so focused on chasing high returns that they overlook the potential risks that can lead to high losses. Therefore, risk forecasting and risk control is the cornerstone of investment. To…

应用统计 · 统计学 2023-11-14 Xinyuan Song

A simple, yet reasonably accurate, analytical technique is proposed for multi-factor structural credit portfolio models. The accuracy of the technique is demonstrated by benchmarking against Monte Carlo simulations. The approach presented…

风险管理 · 定量金融 2011-07-13 Mikhail Voropaev

Quantile is an important measure in finance and quality assessment in service industry. In this paper, we model the temporal and cross-sectional interactive effect of the quantiles of large-dimensional time series by a latent quantile…

统计方法学 · 统计学 2023-03-07 He Yong , Kong Xin-Bing , Yu Long , Zhao Peng

Portfolio optimization methods have evolved significantly since Markowitz introduced the mean-variance framework in 1952. While the theoretical appeal of this approach is undeniable, its practical implementation poses important challenges,…

投资组合管理 · 定量金融 2024-05-28 Adil Rengim Cetingoz , Olivier Guéant

Accurate transfer of information across multiple sectors to enhance model estimation is both significant and challenging in multi-sector portfolio optimization involving a large number of assets in different classes. Within the framework of…

统计方法学 · 统计学 2026-04-23 Qingliang Fan , Ruike Wu , Yanrong Yang

This report presents a systematic market-neutral, multi-factor investment strategy for New York Stock Exchange equities with the objective of delivering steady returns while minimizing correlation with the market. A robust feature set is…

交易与市场微观结构 · 定量金融 2024-12-18 Georgios M. Gkolemis , Adwin Richie Lee , Amine Roudani

Investment returns naturally reside on irregular domains, however, standard multivariate portfolio optimization methods are agnostic to data structure. To this end, we investigate ways for domain knowledge to be conveniently incorporated…

信号处理 · 电气工程与系统科学 2019-10-17 Bruno Scalzo Dees , Ljubisa Stankovic , Anthony G. Constantinides , Danilo P. Mandic

Graphical models are a powerful tool to estimate a high-dimensional inverse covariance (precision) matrix, which has been applied for a portfolio allocation problem. The assumption made by these models is a sparsity of the precision matrix.…

计量经济学 · 经济学 2023-04-04 Tae-Hwy Lee , Ekaterina Seregina

Predicting cross-sectional stock returns is challenging due to low signal-to-noise ratios and evolving market regimes. Classical factor models offer interpretability but limited flexibility, while deep learning models achieve strong…

机器学习 · 计算机科学 2026-05-14 Namhyoung Kim , Jae Wook Song
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