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March 19, 2026PeerJ Computer ScienceOpen Access

Performance analysis of metaheuristic and risk-averse optimization techniques for portfolio management under volatile markets

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This analysis demonstrates effective strategies for portfolio management under market volatility, aiding investors in making informed decisions.

Examine metaheuristic and risk-averse optimization techniques for portfolio management under volatile market conditions.
Literature review on portfolio optimization techniques
Selection of 51 high-performing stocks from the S&P 500
Application of Bacterial Foraging Optimization (BFO), Fireworks Optimization (FWA), Cat Swarm Optimization (CSO), and mean-CVaR
Use of transaction costs and out-of-sample validations for realistic assessment
Measurement of performance using VIX index, CVaR, cumulative returns, volatility, and Sharpe ratio.
CSO achieved the highest risk-adjusted return, showing a strong balance between return and risk.
Mean-CVaR model effectively minimizes risk and loss, making it suitable for risk-averse strategies.
During market disruptions like COVID-19, mean-CVaR demonstrated consistent performance, suggesting its utility for investor education.
BFO and CSO ranked among the best for their efficiency and simplicity in implementation.

Jaiswal et al. (2026) studied this question.

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This analysis demonstrates effective strategies for portfolio management under market volatility, aiding investors in making informed decisions.