Portfolio Blending via Thompson Sampling

Authors: Weiwei Shen, Jun Wang

IJCAI 2016 | Conference PDF | Archive PDF | Plain Text | LLM Run Details

Reproducibility Variable Result LLM Response
Research Type Experimental Our extensive empirical studies and comparisons of the two blended portfolios with seven competing strategies over five real-world market datasets conspicuously illustrate the superiority of the proposed Thompson sampling based blending algorithm.
Researcher Affiliation Collaboration Weiwei Shen , and Jun Wang School of Computer Science and Software Engineering East China Normal University, Shanghai, China GE Global Research Center, Niskayuna, NY, USA, realsww@gmail.com, wongjun@gmail.com
Pseudocode Yes Algorithm 1 Portfolio Blending via Thompson Sampling
Open Source Code No The paper does not contain any explicit statements about making the source code available or provide a link to a code repository.
Open Datasets Yes Fama and French datasets (FF) [Fama and French, 1992]: As standard evaluation protocols and oft-adopted testbeds in the finance community, the FF datasets are constructed portfolios of broad financial segments of the U.S. stock market. ... Real-world market datasets [Shen et al., 2015]: The real-world datasets including ETF139 and EQ181 are crawled from Yahoo! Finance on a weekly basis from 2008 to 2012.
Dataset Splits No The paper describes a rolling-horizon setup with training data sizes ('= 120 months or = 200 weeks') but does not explicitly mention distinct training, validation, and test splits with specific percentages or counts for reproduction in the standard sense.
Hardware Specification No The paper does not provide specific hardware details (e.g., GPU/CPU models, memory amounts) used for running its experiments.
Software Dependencies No The paper does not provide specific software dependencies with version numbers.
Experiment Setup Yes We employ the rolling-horizon settings suggested in [De Miguel et al., 2009]. Specifically, the sliding windows with the size of = 120 months or = 200 weeks of training data are used to construct portfolios for the subsequent month or week. ... We set a cost factor c equal to 50 basis points per transaction... we set H = 12 and H = 52 for monthly and weekly rebalances, respectively. ... we estimate the covariance matrix k by a factor model [Fan et al., 2008] based on the historical data in sliding windows with the size of training data.