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We study the problem of optimal portfolio selection under stochastic volatility within a continuous time reinforcement learning framework with portfolio constraints. Exploration is modeled through entropy-regularized relaxed controls, where…

数理金融 · 定量金融 2026-04-27 Thai Nguyen , Pertiny Nkuize

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

Classical mean-variance portfolio theory tells us how to construct a portfolio of assets which has the greatest expected return for a given level of return volatility. Utility theory then allows an investor to choose the point along this…

投资组合管理 · 定量金融 2009-09-21 Alex Dannenberg

This paper investigates portfolio selection within a continuous-time financial market with regime-switching and beliefs-dependent utilities. The market coefficients and the investor's utility function both depend on the market regime, which…

最优化与控制 · 数学 2024-10-23 Xiaochen Chen , Guohui Guan , Zongxia Liang

In this paper, we consider the portfolio optimization problem in a financial market where the underlying stochastic volatility model is driven by n-dimensional Brownian motions. At first, we derive a Hamilton-Jacobi-Bellman equation…

数理金融 · 定量金融 2024-12-20 Minglian Lin , Indranil SenGupta

This study considers an optimal reinsurance, investment, and dividend strategy control problem for insurance companies in a regulated Markov regime-switching environment, intending to maximize long-run average reward. Unlike existing single…

最优化与控制 · 数学 2025-12-18 Lingjia Zeng , Manman Li

We consider an optimal investment and risk control problem for an insurer under the mean-variance (MV) criterion. By introducing a deterministic auxiliary process defined forward in time, we formulate an alternative time-consistent problem…

投资组合管理 · 定量金融 2021-01-12 Yang Shen , Bin Zou

We investigate discrete-time mean-variance portfolio selection problems viewed as a Markov decision process. We transform the problems into a new model with deterministic transition function for which the Bellman optimality equation holds.…

最优化与控制 · 数学 2025-09-23 Nicole Bäuerle , Anna Jaśkiewicz

Changes in market conditions present challenges for investors as they cause performance to deviate from the ranges predicted by long-term averages of means and covariances. The aim of conditional asset allocation strategies is to overcome…

综合金融 · 定量金融 2022-11-03 Reza Bradrania , Davood Pirayesh Neghab

We consider the problem of portfolio optimization in a simple incomplete market and under a general utility function. By working with the associated Hamilton-Jacobi-Bellman partial differential equation (HJB PDE), we obtain a closed-form…

概率论 · 数学 2018-02-22 Rohini Kumar , Hussein Nasralah

This study employs expected certainty equivalents to explore the reinsurance and investment issue pertaining to an insurer that aims to maximize the expected utility while being subject to random risk aversion. The insurer's surplus process…

最优化与控制 · 数学 2025-01-03 Jian-hao Kang , Zhun Gou , Nan-jing Huang

From the Hamilton-Jacobi-Bellman equation for the value function we derive a non-linear partial differential equation for the optimal portfolio strategy (the dynamic control). The equation is general in the sense that it does not depend on…

投资组合管理 · 定量金融 2013-11-20 Mads Nielsen

We investigate the optimal strategy over a finite time horizon for a portfolio of stock and bond and a derivative in an multiplicative Markovian market model with transaction costs (friction). The optimization problem is solved by a…

物理与社会 · 物理学 2011-06-24 Erik Aurell , Paolo Muratore-Ginanneschi

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

We study Markowitz's mean-variance portfolio selection problem in a continuous-time Black-Scholes market with different borrowing and saving rates. The associated Hamilton-Jacobi-Bellman equation is fully nonlinear. Using a delicate partial…

数理金融 · 定量金融 2023-05-31 Chonghu Guan , Xiaomin Shi , Zuo Quan Xu

Recent studies have shown that online portfolio selection strategies that exploit the mean reversion property can achieve excess return from equity markets. This paper empirically investigates the performance of state-of-the-art mean…

投资组合管理 · 定量金融 2019-09-11 Seung-Hyun Moon , Yong-Hyuk Kim , Byung-Ro Moon

We introduce a dynamic credit portfolio framework where optimal investment strategies are robust against misspecifications of the reference credit model. The risk-averse investor models his fear of credit risk misspecification by…

投资组合管理 · 定量金融 2016-03-29 Agostino Capponi , Lijun Bo

We present a continuous-time portfolio selection framework that reflects goal-based investment principles and mental accounting behavior. In this framework, an investor with multiple investment goals constructs separate portfolios, each…

投资组合管理 · 定量金融 2026-05-12 Erhan Bayraktar , Bingyan Han

We empirically test predictability on asset price by using stock selection rules based on maximum drawdown and its consecutive recovery. In various equity markets, monthly momentum- and weekly contrarian-style portfolios constructed from…

综合金融 · 定量金融 2024-05-24 Jaehyung Choi

With the recent advancements in machine learning (ML), artificial neural networks (ANN) are starting to play an increasingly important role in quantitative finance. Dynamic portfolio optimization is among many problems that have…

投资组合管理 · 定量金融 2024-11-18 Yaacov Kopeliovich , Michael Pokojovy