Sort by
On the Regularity of the Two-Dimensional Navier-Stokes Equations
Hua-Shu Dou
Posted: 12 January 2026
Entropy, Annealing, and the Continuity of Agency in Human–AI
Systems
Pieter van Rooyen
Posted: 09 January 2026
Modified Lagrange-Jacobi Functions
Gaotsiwe Joel Rampho
Posted: 08 January 2026
A Color Image and Text Steganography Based on Multi-Wavelet Transform
Xiaohui Zhou
,Yongzeng Lai
Posted: 07 January 2026
Entropy-Based Portfolio Optimization in Cryptocurrency Markets: A Unified Maximum Entropy Framework
Silvia Dedu
,Florentin Șerban
Traditional mean–variance portfolio optimization proves inadequate for cryptocurrency markets, where extreme volatility, fat-tailed return distributions, and unstable correlation structures undermine the validity of variance as a comprehensive risk measure. To address these limitations, this paper proposes a unified entropy-based portfolio optimization framework grounded in the Maximum Entropy Principle (MaxEnt). Within this setting, Shannon entropy, Tsallis entropy, and Weighted Shannon Entropy (WSE) are formally derived as particular specifications of a common constrained optimization problem solved via the method of Lagrange multipliers, ensuring analytical coherence and mathematical transparency. Moreover, the proposed MaxEnt formulation provides an information-theoretic interpretation of portfolio diversification as an inference problem under uncertainty, where optimal allocations correspond to the least informative distributions consistent with prescribed moment constraints. In this perspective, entropy acts as a structural regularizer that governs the geometry of diversification rather than as a direct proxy for risk. This interpretation strengthens the conceptual link between entropy, uncertainty quantification, and decision-making in complex financial systems, offering a robust and distribution-free alternative to classical variance-based portfolio optimization. The proposed framework is empirically illustrated using a portfolio composed of major cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Binance Coin (BNB)—based on weekly return data. The results reveal systematic differences in the diversification behavior induced by each entropy measure: Shannon entropy favors near-uniform allocations, Tsallis entropy imposes stronger penalties on concentration and enhances robustness to tail risk, while WSE enables the incorporation of asset-specific informational weights reflecting heterogeneous market characteristics. From a theoretical perspective, the paper contributes a coherent MaxEnt formulation that unifies several entropy measures within a single information-theoretic optimization framework, clarifying the role of entropy as a structural regularizer of diversification. From an applied standpoint, the results indicate that entropy-based criteria yield stable and interpretable allocations across turbulent market regimes, offering a flexible alternative to classical risk-based portfolio construction. The framework naturally extends to dynamic multi-period settings and alternative entropy formulations, providing a foundation for future research on robust portfolio optimization under uncertainty.
Traditional mean–variance portfolio optimization proves inadequate for cryptocurrency markets, where extreme volatility, fat-tailed return distributions, and unstable correlation structures undermine the validity of variance as a comprehensive risk measure. To address these limitations, this paper proposes a unified entropy-based portfolio optimization framework grounded in the Maximum Entropy Principle (MaxEnt). Within this setting, Shannon entropy, Tsallis entropy, and Weighted Shannon Entropy (WSE) are formally derived as particular specifications of a common constrained optimization problem solved via the method of Lagrange multipliers, ensuring analytical coherence and mathematical transparency. Moreover, the proposed MaxEnt formulation provides an information-theoretic interpretation of portfolio diversification as an inference problem under uncertainty, where optimal allocations correspond to the least informative distributions consistent with prescribed moment constraints. In this perspective, entropy acts as a structural regularizer that governs the geometry of diversification rather than as a direct proxy for risk. This interpretation strengthens the conceptual link between entropy, uncertainty quantification, and decision-making in complex financial systems, offering a robust and distribution-free alternative to classical variance-based portfolio optimization. The proposed framework is empirically illustrated using a portfolio composed of major cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Binance Coin (BNB)—based on weekly return data. The results reveal systematic differences in the diversification behavior induced by each entropy measure: Shannon entropy favors near-uniform allocations, Tsallis entropy imposes stronger penalties on concentration and enhances robustness to tail risk, while WSE enables the incorporation of asset-specific informational weights reflecting heterogeneous market characteristics. From a theoretical perspective, the paper contributes a coherent MaxEnt formulation that unifies several entropy measures within a single information-theoretic optimization framework, clarifying the role of entropy as a structural regularizer of diversification. From an applied standpoint, the results indicate that entropy-based criteria yield stable and interpretable allocations across turbulent market regimes, offering a flexible alternative to classical risk-based portfolio construction. The framework naturally extends to dynamic multi-period settings and alternative entropy formulations, providing a foundation for future research on robust portfolio optimization under uncertainty.
Posted: 06 January 2026
Weakly Singular Wendroff-Type Integral Inequalities of Multiple Variables with Multiple Nonlinear Terms and Their Applications
Yongsheng Li
,Zizun Li
Posted: 05 January 2026
Generalized Dynamical Model for the Drag Coefficient of Fixed and Moving Cylindrical Bodies
Osama A. Marzouk
Posted: 05 January 2026
Is Weniger's Transformation Capable to Simulate Stieltjes Function Branch Cut?
Riccardo Borghi
Posted: 30 December 2025
MealMind: An AI Framework for Reducing Household Food Waste and Decision Fatigue Through Automated Inventory Management
Dinara Kubatbek kyzy
,Burul Shambetova
Posted: 30 December 2025
Stability Analysis of Echo Chambers: A Stochastic Compartmental Model of Information Diffusion in Scale-Free Networks
Bakhtiiar Tashbolotov
,Burul Shambetova
Posted: 30 December 2025
Review of Structured-Degree Uncertain Sets: Vector-, Matrix-, and Tensor-Valued Membership
Takaaki Fujita
Posted: 29 December 2025
Discrete-to-Continuum Limits of Graph-Regularized Energy Functionals on Irregular Domains
Dinara Mashaeva
,Burul Shambetova
Posted: 29 December 2025
The Effect of Numerical Differentiation Precision on Newton’s Method: When Can Finite Difference Derivatives Outperform Exact Derivatives?
Dinara Mashaeva
,Burul Shambetova
Posted: 29 December 2025
HyperLattice-Valued and SuperHyperLattice-Valued Uncertain Sets
Takaaki Fujita
Posted: 29 December 2025
Optimal Control of Impulsive Systems Under State, Control, and Terminal Constraints
Hugo Leiva
,Mozhgan Nora Entekhabi
Posted: 29 December 2025
Graph-Based Analysis and Optimization of Public Transport Headways
Malika Ashirbekova
,Burul Shambetova
Posted: 26 December 2025
Optimal Transport with Total Variation Regularization: Metric Properties and Limiting Behavior
Akylai Topoeva
,Burul Shambetova
Posted: 25 December 2025
A Numerical Comparison of the Bisection Method and Newton’s Method
Ayim Shaimbetova
,Burul Shambetova
Posted: 25 December 2025
An Explicit Radial Velocity Relation for Galaxy Rotation Curves
John Taylor
Posted: 24 December 2025
Trust as a Stochastic Phase on Hierarchical Networks: Social Learning, Degenerate Diffusion, and Noise-Induced Bistability
Dimitri Volchenkov
,Nuwanthika Karunathilaka
,Vichithra Amunugama Walawwe
,Fahad Mostafa
Posted: 24 December 2025
of 45