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In this report we derive the strategic (deterministic) allocation to bonds and stocks resulting in the optimal mean-variance trade-off on a given investment horizon. The underlying capital market features a mean-reverting process for equity…

数理金融 · 定量金融 2022-01-17 Søren Fiig Jarner

We consider the mean-variance hedging problem under partial information in the case where the flow of observable events does not contain the full information on the underlying asset price process. We introduce a martingale equation of a new…

证券定价 · 定量金融 2008-12-02 M. Mania , R. Tevzadze , T. Toronjadze

The paper solves the problem of optimal portfolio choice when the parameters of the asset returns distribution, like the mean vector and the covariance matrix are unknown and have to be estimated by using historical data of the asset…

统计金融 · 定量金融 2023-04-19 David Bauder , Taras Bodnar , Nestor Parolya , Wolfgang Schmid

Mean-variance portfolio decisions that combine prediction and optimisation have been shown to have poor empirical performance. Here, we consider the performance of various shrinkage methods by their efficient frontiers under different…

投资组合管理 · 定量金融 2022-05-03 Andrew Paskaramoorthy , Tim Gebbie , Terence van Zyl

This paper is devoted to study the effects arising from imposing a value-at-risk (VaR) constraint in mean-variance portfolio selection problem for an investor who receives a stochastic cash flow which he/she must then invest in a…

投资组合管理 · 定量金融 2010-11-24 Jun Ye , Tiantian Li

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…

数理金融 · 定量金融 2022-11-03 Shaolin Ji , Hanqing Jin , Xiaomin Shi

This paper considers the mean variance portfolio management problem. We examine portfolios which contain both primary and derivative securities. The challenge in this context is due to portfolio's nonlinearities. The delta-gamma…

投资组合管理 · 定量金融 2011-11-08 Yang Li , Traian A Pirvu

Motivated by empirical evidence for rough volatility models, this paper investigates continuous-time mean-variance (MV) portfolio selection under the Volterra Heston model. Due to the non-Markovian and non-semimartingale nature of the…

投资组合管理 · 定量金融 2020-01-30 Bingyan Han , Hoi Ying Wong

This paper is concerned with an optimal reinsurance and investment problem for an insurance firm under the criterion of mean-variance. The driving Brownian motion and the rate in return of the risky asset price dynamic equation cannot be…

最优化与控制 · 数学 2020-06-04 Shihao Zhu , Jingtao Shi

We study dynamic optimal portfolio allocation for monotone mean--variance preferences in a general semimartingale model. Armed with new results in this area we revisit the work of Cui, Li, Wang and Zhu (2012, MAFI) and fully characterize…

数理金融 · 定量金融 2020-06-23 Aleš Černý

We derive new results related to the portfolio choice problem for power and logarithmic utilities. Assuming that the portfolio returns follow an approximate log-normal distribution, the closed-form expressions of the optimal portfolio…

投资组合管理 · 定量金融 2023-04-19 Taras Bodnar , Dmytro Ivasiuk , Nestor Parolya , Wofgang Schmid

This paper gives upper and lower bounds on the gap in Jensen's inequality, i.e., the difference between the expected value of a function of a random variable and the value of the function at the expected value of the random variable. The…

概率论 · 数学 2020-08-21 Xiang Gao , Meera Sitharam , Adrian E. Roitberg

In this paper, both dynamic mean-variance portfolio selection problems and dynamic variance hedging problems are discussed under non-Markovian framework. Explicit closed-loop equilibrium strategies of these problems are respectively…

最优化与控制 · 数学 2018-02-06 Tianxiao Wang

In this work, we study the problem of mean-variance hedging with a random horizon T ^ tau, where T is a deterministic constant and is a jump time of the underlying asset price process. We rst formulate this problem as a stochastic control…

最优化与控制 · 数学 2013-07-25 Idris Kharroubi , Thomas Lim , Armand Ngoupeyou

In this paper we study mean-variance hedging under the G-expectation framework. Our analysis is carried out by exploiting the G-martingale representation theorem and the related probabilistic tools, in a contin- uous financial market with…

数理金融 · 定量金融 2016-08-26 Francesca Biagini , Jacopo Mancin , Thilo Meyer Brandis

We consider the mean-variance hedging problem under partial Information. The underlying asset price process follows a continuous semimartingale and strategies have to be constructed when only part of the information in the market is…

概率论 · 数学 2008-12-10 M. Mania , R. Tevzadze , T. Toronjadze

The Heston stochastic volatility process, which is widely used as an asset price model in mathematical finance, is a paradigm for a degenerate diffusion process where the degeneracy in the diffusion coefficient is proportional to the square…

偏微分方程分析 · 数学 2016-03-10 Paul M. N. Feehan , Camelia A. Pop

In the paper, we consider three quadratic optimization problems which are frequently applied in portfolio theory, i.e, the Markowitz mean-variance problem as well as the problems based on the mean-variance utility function and the quadratic…

投资组合管理 · 定量金融 2013-05-13 Taras Bodnar , Nestor Parolya , Wolfgang Schmid

Finding the hedge ratios for a portfolio and risk compression is the same mathematical problem. Traditionally, regression is used for this purpose. However, regression has its own limitations. For example, in a regression model, we can't…

投资组合管理 · 定量金融 2023-05-09 Ali Shirazi , Fereshteh Sadeghi Naieni Fard

This work introduces a new, explicit bound on the Hellinger distance between a continuous random variable and a Gaussian with matching mean and variance. As example applications, we derive a quantitative Hellinger central limit theorem and…

概率论 · 数学 2025-09-23 Morgane Austern , Lester Mackey
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