RM-CVaR: Regularized Multiple β-CVaR Portfolio

Authors: Kei Nakagawa, Shuhei Noma, Masaya Abe

IJCAI 2020 | Conference PDF | Archive PDF | Plain Text | LLM Run Details

Reproducibility Variable Result LLM Response
Research Type Experimental We perform experiments on well-known benchmarks to evaluate the proposed portfolio.
Researcher Affiliation Industry Innovation Lab, Nomura Asset Management Co Ltd, Japan
Pseudocode Yes Algorithm 1 RM-CVa R Portfolio
Open Source Code No No explicit statement about releasing source code or a link to a code repository was found.
Open Datasets Yes In the experiments, we used well-known academic benchmarks called Fama and French (FF) datasets [Fama and French, 1992] to ensure the reproducibility of the experiment. This FF dataset is public and is readily available to anyone.
Dataset Splits Yes We used the first-half period, i.e., from January 1989 to December 2003, as the in-sample period in terms of deciding the hyper-parameters of each model. After that, we used the second half-period, i.e., from January 2004 to December 2018, as the out-of-sample period.
Hardware Specification No No specific hardware details (e.g., GPU/CPU models, memory) used for running experiments were mentioned.
Software Dependencies No No specific ancillary software details, such as library or solver names with version numbers, were provided.
Experiment Setup Yes We set combinations of two coefficients for regularization terms to λ1 = {0.001, 0.005, 0.01, 0.05} and λ2 = {0.001, 0.005, 0.01, 0.05}. We set n1 (number of resamples) = 50, n2 (size of each resample) = 5τ, τ (number of periods of return data) = 120, n3 (number of resampled subsets) = 50, n4 (size of each subset) = n0.7, where n is number of assets. We implemented five patterns of β = {0.95, 0.96, 0.97, 0.98, 0.99}. We set K = 5 (k = 1, ..., K) as five patterns of βk = {0.95, 0.96, 0.97, 0.98, 0.99} to calculate Cβk. We also set Q (number of sampling periods of return data) as {10 years (120 months), 7 years (84 months)}. For the coefficient of the regularization term, we implemented four patterns of λ = {0.001, 0.005, 0.01, 0.05}.