MCDMDecision-makingPortfolioMath steps

HF-TradeOff-Portfolio — Hesitant Fuzzy Score-Deviation Trade-Off Portfolio Selection (Zhou-Xu 2018)

OriginatorZhou, W. Xu, Z.Year2018Sources1Related methods1

HF-TRADEOFF-PORT (HF-TradeOff-Portfolio — Hesitant Fuzzy Score-Deviation Trade-Off Portfolio Selection (Zhou-Xu 2018)) is a portfolio multi-criteria decision-making (MCDM) method introduced by Zhou, W. Xu, Z. in 2018. It turns a decision matrix of alternatives scored on multiple criteria into a structured, reproducible result.

Key highlights

  • Follows a transparent, reproducible computational procedure that can be audited step by step.
  • Handles multiple criteria of differing scales and units within a single decision matrix.

Intuition

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How it works

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When to use it

HF-TradeOff-Portfolio extends HF-MaxScore-Portfolio by enforcing a risk constraint. The deviation trisection automatically calibrates D for three standard investor risk profiles. Score = hesitant fuzzy return; deviation = hesitant fuzzy risk. The efficient frontier (§3.3.2) shows the full score-deviation trade-off curve — useful for visual communication with investors.

Strengths & limitations

Strengths
  • Follows a transparent, reproducible computational procedure that can be audited step by step.
  • Handles multiple criteria of differing scales and units within a single decision matrix.
Limitations
  • Results depend on the chosen normalisation, weights, and parameter settings.

Common pitfalls

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Sources

  1. 1.
    Zhou, W., Xu, Z. (2018). Portfolio selection and risk investment under the hesitant fuzzy environment. Knowledge-Based Systems

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ScholarGate. (2026, June 2). HF-TRADEOFF-PORT. ScholarGate. https://scholargate.app/decision-making/hf-tradeoff-port