Universal switching and side information portfolios under transaction costs using factor graphs

Andrew J. Bean, Andrew C. Singer

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We consider the sequential portfolio investment problem. We demonstrate that the insights of Blum and Kalai's transaction costs algorithm may be used to construct more sophisticated algorithms. In particular, we show that transaction costs can be taken into account in Cover and Ordentlich's side information portfolio and Kozat and Singer's switching portfolio. For these, we present the corresponding universal (low regret) performance bounds for each of these portfolios. We then present factor graph representations of the algorithms and demonstrate that computationally efficient algorithms may be derived from the graphs. Finally, we present results of simulations of one of the derived algorithms and compare it to other portfolios.

Original languageEnglish (US)
Title of host publication2010 IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2010 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1986-1989
Number of pages4
ISBN (Print)9781424442966
DOIs
StatePublished - 2010
Event2010 IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2010 - Dallas, TX, United States
Duration: Mar 14 2010Mar 19 2010

Publication series

NameICASSP, IEEE International Conference on Acoustics, Speech and Signal Processing - Proceedings
ISSN (Print)1520-6149

Other

Other2010 IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2010
Country/TerritoryUnited States
CityDallas, TX
Period3/14/103/19/10

Keywords

  • Factor graph
  • Portfolio
  • Sum-product
  • Transaction costs
  • Universal

ASJC Scopus subject areas

  • Software
  • Signal Processing
  • Electrical and Electronic Engineering

Fingerprint

Dive into the research topics of 'Universal switching and side information portfolios under transaction costs using factor graphs'. Together they form a unique fingerprint.

Cite this