We propose a portfolio rebalance framework that integrates machine learning models into the mean-risk portfolios in multi-period settings with risk-aversion adjustment. In each period, the risk-aversion coefficient is adjusted automatically according to market trend movements predicted by machine learning models. We employ Gini’s Mean Difference (GMD) to specify the risk of a portfolio and use a set of technical indicators generated from a market index (e.g., S&P 500 index) to feed the machine learning models to predict market movements. Using a rolling-horizon approach, we conduct a series of computational tests with real financial data to evaluate the performance of the machine learning integrated portfolio rebalance framework. The empirical results show that the XGBoost model provides the best prediction of market movement, while the proposed portfolio rebalance strategy generates portfolios with superior out-of-sample performances in terms of average returns, time-series cumulative returns, and annualized returns compared to the benchmarks.

Effective household and individual disaster preparedness can minimize physical harm and property damage during catastrophic events. To assess the risk and vulnerability of affected areas, it is crucial for relief agencies to understand the level of public preparedness. Traditionally, government agencies have employed nationwide random telephone surveys to gauge the public’s attitudes and actions towards disaster preparedness. However, these surveys may lack generalizability in certain affected locations due to low response rates or areas not covered by the survey. To address this issue and enhance the comprehensiveness of disaster preparedness assessments, we develop a framework that seamlessly integrates machine learning and simulation. Our approach leverages machine learning algorithms to establish relationships between public attitudes towards disaster preparedness and demographic characteristics. Using Monte Carlo simulation, we generate datasets that incorporate demographic information of the affected location based on government-provided demographic distribution data. The generated dataset is then input into the machine learning model to predict the disaster preparedness attitudes of the affected population. We demonstrate the effectiveness of our framework by applying it to Miami-Dade County, where it accurately predicts the level of disaster preparedness. With this innovative approach, relief agencies can have a clearer and more comprehensive understanding of public disaster preparedness.

Addressing the challenge of equitable disaster relief, our study introduces a novel two-stage multi-objective, preparedness-based stochastic programming model. This model is designed to create an effective humanitarian relief network, prioritizing efficiency, equity, efficacy, and effectiveness. It uniquely incorporates individual disaster preparedness as an indicator, a first in humanitarian relief optimization models. Our approach considers uncertainties in affected populations, disaster duration, and post-disaster travel times, optimizing relief facility locations, inventory levels, and transportation plans. The model is structured around three core objectives: minimizing total expected cost, reducing the expected Gini's Mean Difference in accessible relief supplies per capita, and optimizing disaster preparedness-weighted arrival time. To enhance the effectiveness of disaster relief operations, we implement a joint chance constraint that ensures a high probability of meeting demand through both household-prepared and agency-distributed relief supplies. A case study in the US Gulf Coast region validates the practicality and effectiveness of our proposed model, showcasing its potential in real-world disaster scenarios.

Effective household and individual disaster preparedness can minimize physical harm and property damage during catastrophic events. To assess the risk and vulnerability of affected areas, it is crucial for relief agencies to understand the level of public preparedness. Traditionally, government agencies have employed nationwide random telephone surveys to gauge the public’s attitudes and actions towards disaster preparedness. However, these surveys may lack generalizability in certain affected locations due to low response rates or areas not covered by the survey. To address this issue and enhance the comprehensiveness of disaster preparedness assessments, we develop a framework that seamlessly integrates machine learning and simulation. Our approach leverages machine learning algorithms to establish relationships between public attitudes towards disaster preparedness and demographic characteristics. Using Monte Carlo simulation, we generate datasets that incorporate demographic information of the affected location based on government-provided demographic distribution data. The generated dataset is then input into the machine learning model to predict the disaster preparedness attitudes of the affected population. We demonstrate the effectiveness of our framework by applying it to Miami-Dade County, where it accurately predicts the level of disaster preparedness. With this innovative approach, relief agencies can have a clearer and more comprehensive understanding of public disaster preparedness.