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I. Halperin

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Jul 2026

Observable Matrix Dynamics of Stocks

The Observable Matrix Dynamics (OMD) approach monitors the time development of complex non-linear systems through the trajectory of a fixed-size distance matrix and its spectrum. We apply it to the S\&P 500 cross section over three crisis decades, the 2001 dot-com bust, the 2007--2008 financial crisis, and the 2020 Cov...

I. Halperin · 2 citations
Jul 2026

SciPhy Reinforcement Learning for Portfolio Optimization

The results demonstrate that the proposed framework successfully translates known signal quality into a robust, multi-period, and cost-aware allocation mechanism with strictly controlled volatility and turnover.

I. Halperin, A. Itkin · 0 citations
Preprint Jul 2026

Are Three Matrices All You Need To Beat the Market? Observable Matrix Dynamics for Portfolio Optimization

We present a simple framework for dynamic portfolio management that uses nothing but daily prices, trading volumes, and market capitalizations. Its state is three fixed-size matrices built from the price history: the distance matrix of the return correlations and the transition matrices of two Markov chains that rank t...

I. Halperin · 1 citation

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