arXiv Machine Learning By Xavier Fonseca

The Decision Geometry of Covariance Estimation for the Global Minimum-Variance Portfolio under Heavy Tails

Read the original on arXiv Machine Learning →

arXiv:2606. 27462v1 Announce Type: cross Abstract: The global minimum-variance portfolio (GMVP) is the canonical decision built from an estimated covariance matrix, yet covariance estimators are universally evaluated by matrix-norm loss, which is not the object the decision depends on.

Summary generated by The Flow from the publisher's feed. The full article lives at arXiv Machine Learning.

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arXiv:2607. 18866v1 Announce Type: cross Abstract: Building on the identity that expected regret equals the covariance between costs and decisions, this paper develops the complete derivative theory of the covariance regret functional.

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