An enhanced distributed differential evolution algorithm for portfolio optimization problems

The population structure of differential evolution (DE) algorithm cannot maintain the diversity of the population to the greatest extent and help the population avoid to fall into the local optima in time. In this paper, a co-evolutionary multi-swarm adaptive differential evolution algorithm, namely...

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Veröffentlicht in:Engineering applications of artificial intelligence Jg. 121; S. 106004
Hauptverfasser: Song, Yingjie, Zhao, Gaoyang, Zhang, Bin, Chen, Huayue, Deng, Wuquan, Deng, Wu
Format: Journal Article
Sprache:Englisch
Veröffentlicht: Elsevier Ltd 01.05.2023
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ISSN:0952-1976, 1873-6769
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Abstract The population structure of differential evolution (DE) algorithm cannot maintain the diversity of the population to the greatest extent and help the population avoid to fall into the local optima in time. In this paper, a co-evolutionary multi-swarm adaptive differential evolution algorithm, namely ECMADE is proposed to solve the premature convergence and search stagnation. First of all, in terms of population structure, based on the parallel distributed framework, ECMADE randomly and evenly divides the population into exploration subpopulation, development subpopulation, and auxiliary subpopulation, and introduces an adaptive information exchange mechanism so that subpopulations can escape local optima in time. Then, a multi-operator parallel search strategy is proposed to keep population diversity and meet the optimization needs of different problems. Finally, an adaptive adjustment mechanism of control parameters is developed, through recent elite parameter archive and weight distribution to fully mine successful parameter information, and generate control parameters with a high success rate for the current evolutionary stage. In order to prove the effectiveness of the ECMADE, 10 test functions and portfolio optimization problem are selected in here. The experiment results show that the ECMADE can effectively solve these test functions, the accuracy and efficiency is superior to those of two classical DE algorithms. The actual application results show that the ECMADE can significantly improve the ability of portfolio to resist extreme losses, which proves the effectiveness and feasibility of the ECMADE once again. The ECMADE has better optimization performance by comparing with some well-known algorithms in term of the solution quality, robustness and space distribution. It provides a new algorithm for solving complex optimization problems.
AbstractList The population structure of differential evolution (DE) algorithm cannot maintain the diversity of the population to the greatest extent and help the population avoid to fall into the local optima in time. In this paper, a co-evolutionary multi-swarm adaptive differential evolution algorithm, namely ECMADE is proposed to solve the premature convergence and search stagnation. First of all, in terms of population structure, based on the parallel distributed framework, ECMADE randomly and evenly divides the population into exploration subpopulation, development subpopulation, and auxiliary subpopulation, and introduces an adaptive information exchange mechanism so that subpopulations can escape local optima in time. Then, a multi-operator parallel search strategy is proposed to keep population diversity and meet the optimization needs of different problems. Finally, an adaptive adjustment mechanism of control parameters is developed, through recent elite parameter archive and weight distribution to fully mine successful parameter information, and generate control parameters with a high success rate for the current evolutionary stage. In order to prove the effectiveness of the ECMADE, 10 test functions and portfolio optimization problem are selected in here. The experiment results show that the ECMADE can effectively solve these test functions, the accuracy and efficiency is superior to those of two classical DE algorithms. The actual application results show that the ECMADE can significantly improve the ability of portfolio to resist extreme losses, which proves the effectiveness and feasibility of the ECMADE once again. The ECMADE has better optimization performance by comparing with some well-known algorithms in term of the solution quality, robustness and space distribution. It provides a new algorithm for solving complex optimization problems.
ArticleNumber 106004
Author Chen, Huayue
Zhang, Bin
Song, Yingjie
Deng, Wuquan
Deng, Wu
Zhao, Gaoyang
Author_xml – sequence: 1
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  surname: Song
  fullname: Song, Yingjie
  organization: School of Computer Science and Technology, Shandong Technology and Business University, Yantai 264005, China
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  givenname: Gaoyang
  surname: Zhao
  fullname: Zhao, Gaoyang
  organization: School of Statistics, Shandong Technology and Business University, Yantai 264005, China
– sequence: 3
  givenname: Bin
  surname: Zhang
  fullname: Zhang, Bin
  organization: School of Computer Science and Technology, Shandong Technology and Business University, Yantai 264005, China
– sequence: 4
  givenname: Huayue
  surname: Chen
  fullname: Chen, Huayue
  email: sunnyxiaoyue20@cwnu.edu.cn
  organization: School of Computer Science, China West Normal University, Nanchong 637002, China
– sequence: 5
  givenname: Wuquan
  surname: Deng
  fullname: Deng, Wuquan
  email: wuquandeng@cqu.edu.cn
  organization: Department of Endocrinology, Chongqing University Central Hospital, Key Laboratory for Biorheological Science and Technology of Ministry of Education, Chongqing University, Chongqing 400014, China
– sequence: 6
  givenname: Wu
  surname: Deng
  fullname: Deng, Wu
  email: dw7689@163.com
  organization: College of Electronic Information and Automation, Civil Aviation University of China, Tianjin 300300, China
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Keywords Portfolio optimization
Adaptive differential evolution algorithm
Fuzzy c-means clustering algorithm
Parallel search
Multi-population parallel distribution structure
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Snippet The population structure of differential evolution (DE) algorithm cannot maintain the diversity of the population to the greatest extent and help the...
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StartPage 106004
SubjectTerms Adaptive differential evolution algorithm
Fuzzy c-means clustering algorithm
Multi-population parallel distribution structure
Parallel search
Portfolio optimization
Title An enhanced distributed differential evolution algorithm for portfolio optimization problems
URI https://dx.doi.org/10.1016/j.engappai.2023.106004
Volume 121
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