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We propose that predictability is a prerequisite for profitability on financial markets. We look at ways to measure predictability of price changes using information theoretic approach and employ them on all historical data available for…

Statistical Finance · Quantitative Finance 2013-11-13 Paweł Fiedor

Thanks to the high potential for profit, trading has become increasingly attractive to investors as the cryptocurrency and stock markets rapidly expand. However, because financial markets are intricate and dynamic, accurately predicting…

Being able to predict stock prices might be the unspoken wish of stock investors. Although stock prices are complicated to predict, there are many theories about what affects their movements, including interest rates, news and social media.…

Machine Learning · Computer Science 2021-05-05 Roderick Karlemstrand , Ebba Leckström

When people buy products online, they primarily base their decisions on the recommendations of others given in online reviews. The current work analyzed these online reviews by sentiment analysis and used the extracted sentiments as…

Artificial Intelligence · Computer Science 2020-03-03 Chaehan So

Mining 29,000 accounting ratios for t-statistics $> 2.0$ leads to cross-sectional return predictability similar to the peer review process. For both, $\approx50\%$ of predictability remains after the original sample periods. This finding…

General Finance · Quantitative Finance 2026-01-01 Andrew Y. Chen , Alejandro Lopez-Lira , Tom Zimmermann

Cryptocurrencies have emerged as a novel financial asset garnering significant attention in recent years. A defining characteristic of these digital currencies is their pronounced short-term market volatility, primarily influenced by…

Computational Finance · Quantitative Finance 2024-01-02 Vahidin Jeleskovic , Stephen Mackay

Financial market forecasting is one of the most attractive practical applications of sentiment analysis. In this paper, we investigate the potential of using sentiment \emph{attitudes} (positive vs negative) and also sentiment…

Computation and Language · Computer Science 2019-03-14 Andrius Mudinas , Dell Zhang , Mark Levene

This paper investigates the benefits of internet search data in the form of Google Trends for nowcasting real U.S. GDP growth in real time through the lens of mixed frequency Bayesian Structural Time Series (BSTS) models. We augment and…

Econometrics · Economics 2022-05-17 David Kohns , Arnab Bhattacharjee

We show how text from news articles can be used to predict intraday price movements of financial assets using support vector machines. Multiple kernel learning is used to combine equity returns with text as predictive features to increase…

Machine Learning · Computer Science 2009-06-24 Ronny Luss , Alexandre d'Aspremont

Anticipating price developments in financial markets is a topic of continued interest in forecasting. Funneled by advancements in deep learning and natural language processing (NLP) together with the availability of vast amounts of textual…

Statistical Finance · Quantitative Finance 2023-03-21 Duygu Ider , Stefan Lessmann

In the e-commerce space, accurate prediction of delivery dates plays a major role in customer experience as well as in optimizing the supply chain operations. Predicting a date later than the actual delivery date might sometimes result in…

Machine Learning · Computer Science 2021-05-04 Preethi V , Nachiappan Sundaram , Ravindra Babu Tallamraju

In the literature about web survey methodology, significant efforts have been made to understand the role of time-invariant factors (e.g. gender, education and marital status) in (non-)response mechanisms. Time-invariant factors alone,…

Social and Information Networks · Computer Science 2022-01-24 Qixiang Fang , Joep Burger , Ralph Meijers , Kees van Berkel

Price prediction is one of the examples related to forecasting tasks and is a project based on data science. Price prediction analyzes data and predicts the cost of new products. The goal of this research is to achieve an arrangement to…

Computer Vision and Pattern Recognition · Computer Science 2021-04-05 Aidin Zehtab-Salmasi , Ali-Reza Feizi-Derakhshi , Narjes Nikzad-Khasmakhi , Meysam Asgari-Chenaghlu , Saeideh Nabipour

Researchers are more likely to share notable findings. As a result, published findings tend to overstate the magnitude of real-world phenomena. This bias is a natural concern for asset pricing research, which has found hundreds of return…

General Finance · Quantitative Finance 2023-09-22 Andrew Y. Chen , Tom Zimmermann

Understanding the variations in trading price (volatility), and its response to exogenous information, is a well-researched topic in finance. In this study, we focus on finding stable and accurate volatility predictors for a relatively new…

Statistical Finance · Quantitative Finance 2022-12-07 M. Eren Akbiyik , Mert Erkul , Killian Kaempf , Vaiva Vasiliauskaite , Nino Antulov-Fantulin

Large language models (LLMs), including ChatGPT, can extract profitable trading signals from the sentiment in news text. However, backtesting such strategies poses a challenge because LLMs are trained on many years of data, and backtesting…

General Finance · Quantitative Finance 2023-10-02 Paul Glasserman , Caden Lin

Sentiment-based stock prediction systems aim to explore sentiment or event signals from online corpora and attempt to relate the signals to stock price variations. Both the feature-based and neural-networks-based approaches have delivered…

Computation and Language · Computer Science 2020-08-19 Yue Zhou , Kerstin Voigt

Machine learning algorithms are increasingly employed to price or value homes for sale, properties for rent, rides for hire, and various other goods and services. Machine learning-based prices are typically generated by complex algorithms…

Theoretical Economics · Economics 2023-02-21 Nikhil Malik , Emaad Manzoor

When machine learning systems meet real world applications, accuracy is only one of several requirements. In this paper, we assay a complementary perspective originating from the increasing availability of pre-trained and regularly…

Learning user preferences for products based on their past purchases or reviews is at the cornerstone of modern recommendation engines. One complication in this learning task is that some users are more likely to purchase products or review…

Information Retrieval · Computer Science 2023-03-08 Wanning Chen , Mohsen Bayati