{"id":8743,"date":"2024-11-04T04:56:08","date_gmt":"2024-11-04T02:56:08","guid":{"rendered":"https:\/\/anale.steconomiceuoradea.ro\/en\/?p=8743"},"modified":"2024-11-04T04:56:08","modified_gmt":"2024-11-04T02:56:08","slug":"bridging-tradition-and-innovation-a-literature-review-on-portfolio-optimization","status":"publish","type":"post","link":"https:\/\/anale.steconomiceuoradea.ro\/en\/2024\/11\/04\/bridging-tradition-and-innovation-a-literature-review-on-portfolio-optimization\/","title":{"rendered":"BRIDGING TRADITION AND INNOVATION: A LITERATURE REVIEW ON PORTFOLIO OPTIMIZATION"},"content":{"rendered":"<h2>\u0218tefan RUSU, Marcel BOLO\u0218<\/h2>\n<p><em>University of Oradea, Oradea, Romania<\/em><\/p>\n<p><a href=\"mailto:stefan.rusu.d@gmail.com\"><em>stefan.rusu.d@gmail.com<\/em><\/a><\/p>\n<p><a href=\"mailto:marcel_bolos@yahoo.com\"><em>marcel_bolos@yahoo.com<\/em><\/a><\/p>\n<p><strong>&nbsp;<\/strong><strong>Abstract:<\/strong> <em>Portfolio optimization plays a crucial role in investment decision-making by balancing risk and return objectives. With the aim of improving portfolio performance, while enhancing risk management, this literature review explores traditional and artificial intelligence-powered approaches for portfolio optimization. From the traditional methods of portfolio optimization, methods such as random matrix theory, shrinkage estimators, correlation asymmetries and partial correlation networks are presented. While, from the artificial intelligence realm, techniques such as machine learning efficient frontiers, performance-based regularization, neural network predictors and deep learning models for direct optimization of portfolio Sharpe ratio are highlighted. Intertwining the traditional methods, with artificial intelligence techniques, this review highlights relevant portfolio optimization research useful for academics and practitioners alike.<\/em><\/p>\n<p><em>&nbsp;<\/em><strong>Keywords:<\/strong> <em>artificial intelligence<\/em><em>; <\/em><em>machine learning; portfolio optimization; finance; investing; financial markets<\/em><\/p>\n<p><a href=\"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-content\/uploads\/2024\/11\/AUOES.July_.2024.34.pdf\" target=\"_blank\" rel=\"noopener\">VIEW\/DOWNLOAD ARTICLE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u0218tefan RUSU, Marcel BOLO\u0218 University of Oradea, Oradea, Romania stefan.rusu.d@gmail.com marcel_bolos@yahoo.com &nbsp;Abstract: Portfolio optimization plays a crucial role in investment decision-making by balancing risk and return objectives. With the aim of improving portfolio performance, while enhancing risk management, this literature review explores traditional and artificial intelligence-powered approaches for portfolio optimization. From the traditional methods of [&hellip;]<\/p>\n","protected":false},"author":123463,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p3c4cf-2h1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/posts\/8743"}],"collection":[{"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/users\/123463"}],"replies":[{"embeddable":true,"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/comments?post=8743"}],"version-history":[{"count":1,"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/posts\/8743\/revisions"}],"predecessor-version":[{"id":8747,"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/posts\/8743\/revisions\/8747"}],"wp:attachment":[{"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/media?parent=8743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/categories?post=8743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anale.steconomiceuoradea.ro\/en\/wp-json\/wp\/v2\/tags?post=8743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}