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The discrete-time multifactor Vasi\v{c}ek model is a tractable Gaussian spot rate model. Typically, two- or three-factor versions allow one to capture the dependence structure between yields with different times to maturity in an…

Mathematical Finance · Quantitative Finance 2016-09-05 Philipp Harms , David Stefanovits , Josef Teichmann , Mario V. Wüthrich

A class of random graphs is introduced and studied. The graphs are constructed in an algorithmic way from five motifs which were found in [Milo R., Shen-Orr S., Itzkovitz S., Kashtan N., Chklovskii D., Alon U., Science, 2002, 298, 824-827].…

Mathematical Physics · Physics 2011-06-23 M. Kotorowicz , Yu. Kozitsky

The hypothesis that committed revolving credit lines with fixed spreads can provide firms with interest rate insurance is a standard feature of models on these credit facilities' interest rate structure. Nevertheless, this hypothesis has…

General Economics · Economics 2024-01-24 Miguel A. Duran

Cartograms combine statistical and geographical information in thematic maps, where areas of geographical regions (e.g., countries, states) are scaled in proportion to some statistic (e.g., population, income). Cartograms make it possible…

Human-Computer Interaction · Computer Science 2016-09-16 Sabrina Nusrat , Stephen Kobourov

The action of ring automorphisms of the polynomial ring in two variables over the real numbers on real plane curves is considered. The orbits containing degree-three polynomials are computed, with one representative per orbit being…

Algebraic Geometry · Mathematics 2020-02-28 Mark Bly

Due to the chronic nature of diabetes, patient self-care factors play an important role in any treatment plan. In order to understand the behaviour of patients in response to medical advice on self-care, clinicians often conduct…

Quantitative Methods · Quantitative Biology 2016-09-20 Santosh Tirunagari , Simon Bull , Samaneh Kouchaki , Deborah Cooke , Norman Poh

The volatility features of financial data would considerably change in different periods, that is one of the main factors affecting the applications of machine learning in quantitative trading. Therefore, to effectively distinguish…

Computational Engineering, Finance, and Science · Computer Science 2023-01-10 Pei Dehao , Luo Chao

Macroeconomic factors have a critical impact on banking credit risk, which cannot be directly controlled by banks, and therefore, there is a need for an early credit risk warning system based on the macroeconomy. By comparing different…

Information Retrieval · Computer Science 2024-01-29 Hemlata Sharma , Aparna Andhalkar , Oluwaseun Ajao , Bayode Ogunleye

ROC curves and cost curves are two popular ways of visualising classifier performance, finding appropriate thresholds according to the operating condition, and deriving useful aggregated measures such as the area under the ROC curve (AUC)…

Artificial Intelligence · Computer Science 2011-08-01 José Hernández-Orallo , Peter Flach , Cèsar Ferri

We classify isomorphism-invariant random digraphs according to where randomness resides, namely, arcs, vertices, and vertices and arcs together which in turn yield arc random digraphs (ARD), vertex random digraphs (VRD) and vertex-arc…

Combinatorics · Mathematics 2016-05-10 Selim Bahadır , Elvan Ceyhan

We revisit the problem of pricing and hedging plain vanilla single-currency interest rate derivatives using multiple distinct yield curves for market coherent estimation of discount factors and forward rates with different underlying rate…

Pricing of Securities · Quantitative Finance 2012-08-02 Marco Bianchetti

Learning curves are a measure for how the performance of machine learning models improves given a certain volume of training data. Over a wide variety of applications and models it was observed that learning curves follow -- to a large…

Machine Learning · Computer Science 2023-10-13 Laura Didyk , Brayden Yarish , Michael A. Beck , Christopher P. Bidinosti , Christopher J. Henry

Decentralized Finance (DeFi) money markets have seen explosive growth in recent years, with billions of dollars borrowed in various cryptocurrency assets. Key to the safety of money markets is the implementation of interest rates that…

Risk Management · Quantitative Finance 2024-07-16 Yuval Boneh

Texture is one of the most important properties of visual surface that helps in discriminating one object from another or an object from background. The self-organizing map (SOM) is an excellent tool in exploratory phase of data mining. It…

Computer Vision and Pattern Recognition · Computer Science 2014-08-20 Marghny H. Mohamed , Mohammed M. Abdelsamea

We develop a general term structure framework taking stochastic discontinuities explicitly into account. Stochastic discontinuities are a key feature in interest rate markets, as for example the jumps of the term structures in…

Mathematical Finance · Quantitative Finance 2020-04-28 Claudio Fontana , Zorana Grbac , Sandrine Gümbel , Thorsten Schmidt

Interest-rate risk is a key factor for property-casualty insurer capital. P&C companies tend to be highly leveraged, with bond holdings much greater than capital. For GAAP capital, bonds are marked to market but liabilities are not, so…

Risk Management · Quantitative Finance 2019-12-24 Gary Venter , Kailan Shang

Divergences or similarity measures between probability distributions have become a very useful tool for studying different aspects of statistical objects such as time series, networks and images. Notably not every divergence provides…

Information Theory · Computer Science 2022-11-30 Diego M. Mateos , Leonardo E. Riveaud , Pedro W. Lamberti

The analytical tractability of affine (short rate) models, such as the Vasicek and the Cox-Ingersoll-Ross models, has made them a popular choice for modelling the dynamics of interest rates. However, in order to account properly for the…

Mathematical Finance · Quantitative Finance 2016-09-08 Philipp Harms , David Stefanovits , Josef Teichmann , Mario Wüthrich

Many applications of AI involve scoring individuals using a learned function of their attributes. These predictive risk scores are then used to take decisions based on whether the score exceeds a certain threshold, which may vary depending…

Machine Learning · Statistics 2021-02-26 Robin Vogel , Aurélien Bellet , Stephan Clémençon

High order splitting schemes with complex timesteps are applied to Kolmogorov backward equations stemming from stochastic differential equations in Stratonovich form. In the setting of weighted spaces, the necessary analyticity of the split…

Numerical Analysis · Mathematics 2012-10-22 Philipp Doersek , Eskil Hansen