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In recent years, machine learning (ML) has brought effective approaches and novel techniques to economic decision, investment forecasting, and risk management, etc., coping the variable and intricate nature of economic and financial…

Computational Engineering, Finance, and Science · Computer Science 2023-12-25 Huajian Li , Longjian Li , Jiajian Liang , Weinan Dai

The standard regression tree method applied to observations within clusters poses both methodological and implementation challenges. Effectively leveraging these data requires methods that account for both individual-level and sample-level…

Methodology · Statistics 2025-03-05 Jeremiah Allis , Xin Jin , Riddhi Ghosh

In this paper we implement a Local Linear Regression Ensemble Committee (LOLREC) to predict 1-day-ahead returns of 453 assets form the S&P500. The estimates and the historical returns of the committees are used to compute the weights of the…

Portfolio Management · Quantitative Finance 2015-06-30 Gabor Nagy , Gergo Barta , Tamas Henk

Problem definition. In retailing, discrete choice models (DCMs) are commonly used to capture the choice behavior of customers when offered an assortment of products. When estimating DCMs using transaction data, flexible models (such as…

Machine Learning · Computer Science 2025-10-08 Ningyuan Chen , Guillermo Gallego , Zhuodong Tang

Classification algorithms based on Artificial Intelligence (AI) are nowadays applied in high-stakes decisions in finance, healthcare, criminal justice, or education. Individuals can strategically adapt to the information gathered about…

Computer Science and Game Theory · Computer Science 2025-08-14 Marta C. Couto , Flavia Barsotti , Fernando P. Santos

Predicting fund performance is beneficial to both investors and fund managers, and yet is a challenging task. In this paper, we have tested whether deep learning models can predict fund performance more accurately than traditional…

Statistical Finance · Quantitative Finance 2023-08-01 Nghia Chu , Binh Dao , Nga Pham , Huy Nguyen , Hien Tran

Data used in stock assessment models result from combinations of biological, ecological, fishery, and sampling processes. Since different types of errors propagate through these processes it can be difficult to identify a particular family…

Applications · Statistics 2016-10-13 Christoffer Moesgaard Albertsen , Anders Nielsen , Uffe Høgsbro Thygesen

Determining the stability of molecules and condensed phases is the cornerstone of atomistic modelling, underpinning our understanding of chemical and materials properties and transformations. Here we show that a machine learning model,…

We propose a novel investment decision strategy (IDS) based on deep learning. The performance of many IDSs is affected by stock similarity. Most existing stock similarity measurements have the problems: (a) The linear nature of many…

Computational Finance · Quantitative Finance 2018-02-20 Guosheng Hu , Yuxin Hu , Kai Yang , Zehao Yu , Flood Sung , Zhihong Zhang , Fei Xie , Jianguo Liu , Neil Robertson , Timothy Hospedales , Qiangwei Miemie

Kelly's Criterion is well known among gamblers and investors as a method for maximizing the returns one would expect to observe over long periods of betting or investing. These ideas are conspicuously absent from portfolio optimization…

Portfolio Management · Quantitative Finance 2018-02-20 Zachariah Peterson

The rapidly evolving cryptocurrency market presents unique challenges for investment due to its inherent volatility and evolving regulatory environment. Collective price movements can be exploited to construct diversified portfolios with…

Popular Physics · Physics 2026-05-01 Ruixue Jing , Ryota Kobayashi , Luis Enrique Correa Rocha

This paper examines the implementation of a statistical arbitrage trading strategy based on co-integration relationships where we discover candidate portfolios using multiple factors rather than just price data. The portfolio selection…

Portfolio Management · Quantitative Finance 2014-05-13 Wenbin Zhang , Zhen Dai , Bindu Pan , Milan Djabirov

This study first reconstructs three deep learning powered stock trading models and their associated strategies that are representative of distinct approaches to the problem and established upon different aspects of the many theories evolved…

Trading and Market Microstructure · Quantitative Finance 2021-04-07 Haohan Zhang

The paper focuses on predicting the Nifty 50 Index by using 8 Supervised Machine Learning Models. The techniques used for empirical study are Adaptive Boost (AdaBoost), k-Nearest Neighbors (kNN), Linear Regression (LR), Artificial Neural…

Statistical Finance · Quantitative Finance 2022-02-21 Gurjeet Singh

This paper explores neural network-based approaches for algorithmic trading in cryptocurrency markets. Our approach combines multi-timeframe trend analysis with high-frequency direction prediction networks, achieving positive risk-adjusted…

Computational Finance · Quantitative Finance 2025-08-05 Wěi Zhāng

Ensemble learning is a process by which multiple base learners are strategically generated and combined into one composite learner. There are two features that are essential to an ensemble's performance, the individual accuracies of the…

Machine Learning · Computer Science 2021-09-30 Wenjing Li , Randy C. Paffenroth , David Berthiaume

This paper presents performance analysis of hybrid model comprise of concordance and Genetic Programming (GP) to forecast financial market with some existing models. This scheme can be used for in depth analysis of stock market. Different…

Statistical Finance · Quantitative Finance 2013-05-16 Mahesh S. Khadka , K. M. George , N. Park , J. B. Kim

We study the price dynamics of stocks traded in the NASDAQ market by considering the statistical properties of an ensemble of stocks traded simultaneously. For each trading day of our database, we study the ensemble return distribution by…

Statistical Mechanics · Physics 2009-11-07 Fabrizio Lillo , Rosario N. Mantegna

We introduce Spatio-Temporal Momentum strategies, a class of models that unify both time-series and cross-sectional momentum strategies by trading assets based on their cross-sectional momentum features over time. While both time-series and…

Portfolio Management · Quantitative Finance 2023-12-08 Wee Ling Tan , Stephen Roberts , Stefan Zohren

This paper presents a sophisticated multi-day turnover quantitative trading algorithm that integrates advanced deep learning techniques with comprehensive cross-sectional stock prediction for the Chinese A-share market. Our framework…

Computational Engineering, Finance, and Science · Computer Science 2025-06-10 Yimin Du
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