MétaCan
Menu
Back to cohort
Record W3093094698 · doi:10.1016/j.ejor.2023.02.014

Portfolio selection: A target-distribution approach

2023· article· en· W3093094698 on OpenAlex
Nathan Lassance, Frédéric Vrins

Why this work is in the frame

A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.

affAt least one author lists a Canadian institution in the pinned OpenAlex snapshot.

Bibliographic record

VenueEuropean Journal of Operational Research · 2023
Typearticle
Languageen
FieldDecision Sciences
TopicRisk and Portfolio Optimization
Canadian institutionsHEC Montréal
FundersBelgian Federal Science Policy OfficeFonds De La Recherche Scientifique - FNRS
KeywordsEfficient frontierPortfolioPortfolio optimizationVariance (accounting)Selection (genetic algorithm)EconometricsComputer scienceModern portfolio theoryAsset (computer security)GaussianRate of return on a portfolioPost-modern portfolio theoryMathematical optimizationInvestment strategyMathematicsEconomicsReplicating portfolioFinanceMarket liquidityArtificial intelligence

Abstract

fetched live from OpenAlex

We introduce a novel framework for the portfolio selection problem in which investors aim to target a return distribution , and the optimal portfolio has a return distribution as close as possible to the targeted one. The proposed framework can be applied to a variety of investment objectives. In this paper, we focus on improving the higher moments of mean-variance-efficient portfolios by designing the target so that its first two moments match those of the chosen efficient portfolio but has more desirable higher moments. We show theoretically that the optimal portfolio is in general different from the mean-variance portfolio, but remains mean-variance efficient when asset returns are Gaussian. Otherwise, it can move away from the efficient frontier to better match the higher moments of the target distribution. An extensive empirical analysis using three characteristic-sorted datasets and a dataset of 100 individual stocks indicates that the proposed framework delivers a satisfying compromise between mean-variance efficiency and improved higher moments.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.035
metaresearch head score (Gemma)0.006
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMetaresearch, Insufficient payload (model declined to judge)
Consensus categoriesInsufficient payload (model declined to judge)
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: Not applicable
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.680
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0350.006
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0010.004
Science and technology studies0.0010.000
Scholarly communication0.0010.001
Open science0.0010.000
Research integrity0.0000.001
Insufficient payload (model declined to judge)0.0010.002

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.254
GPT teacher head0.455
Teacher spread0.202 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it