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We investigate how and when to diversify capital over assets, i.e., the portfolio selection problem, from a signal processing perspective. To this end, we first construct portfolios that achieve the optimal expected growth in i.i.d.…

Portfolio Management · Quantitative Finance 2012-07-18 Sait Tunc , Mehmet A. Donmez , Suleyman S. Kozat

The minimum spanning tree, based on the concept of ultrametricity, is constructed from the correlation matrix of stock returns and provides a meaningful economic taxonomy of the stock market. In order to study the dynamics of this asset…

Statistical Mechanics · Physics 2009-11-07 J. -P. Onnela , A. Chakraborti , K. Kaski , J. Kertesz

The dynamic portfolio construction problem requires dynamic modeling of the joint distribution of multivariate stock returns. To achieve this, we propose a dynamic generative factor model which uses random variable transformation as an…

Portfolio Management · Quantitative Finance 2024-01-18 Chuting Sun , Qi Wu , Xing Yan

We develop a discrete-time version of the blended dynamics theorem for the use of designing distributed computation algorithms. The blended dynamics theorem enables to predict the behavior of heterogeneous multi-agent systems. Therefore,…

Systems and Control · Electrical Eng. & Systems 2023-12-01 Jeong Woo Kim , Jin Gyu Lee , Donggil Lee , Hyungbo Shim

With the widespread application of machine learning technology in recent years, the demand for training data has increased significantly, leading to the emergence of research areas such as data trading. The work in this field is still in…

Computer Science and Game Theory · Computer Science 2024-05-14 Kongyang Chen , Zeming Xu , Bing Mi

Using machine learning and alternative data for the prediction of financial markets has been a popular topic in recent years. Many financial variables such as stock price, historical volatility and trade volume have already been through…

Computational Finance · Quantitative Finance 2020-09-18 Thomas Dierckx , Jesse Davis , Wim Schoutens

This study investigates an optimal consumption--investment problem in which the unobserved stock trend is modulated by a hidden Markov chain that represents different economic regimes. In the classical approach, the hidden state is…

Mathematical Finance · Quantitative Finance 2023-07-21 Kexin Chen , Hoi Ying Wong

This paper introduces a global stock market volatility forecasting model that enhances forecasting accuracy and practical utility in real-world financial decision-making by integrating dynamic graph structures and encompassing all active…

General Finance · Quantitative Finance 2025-09-17 Zhengyang Chi , Junbin Gao , Chao Wang

Investors try to predict returns of financial assets to make successful investment. Many quantitative analysts have used machine learning-based methods to find unknown profitable market rules from large amounts of market data. However,…

Trading and Market Microstructure · Quantitative Finance 2020-12-21 Katsuya Ito , Kentaro Minami , Kentaro Imajo , Kei Nakagawa

Since exchange economy considerably varies in the market assets, asset prices have become an attractive research area for investigating and modeling ambiguous and uncertain information in today markets. This paper proposes a new generative…

General Finance · Quantitative Finance 2018-03-28 Farouq Abdulaziz Masoudy

This research paper focuses on the integration of Artificial Intelligence (AI) into the currency trading landscape, positing the development of personalized AI models, essentially functioning as intelligent personal assistants tailored to…

Machine Learning · Computer Science 2023-12-04 Jai Pal

Neural networks are powerful tools for classification and regression in static environments. This paper describes a technique for creating an ensemble of neural networks that adapts dynamically to changing conditions. The model separates…

Artificial Intelligence · Computer Science 2008-12-16 Baruch Lubinsky , Bekir Genc , Tshilidzi Marwala

One of the major goals in automated argumentation mining is to uncover the argument structure present in argumentative text. In order to determine this structure, one must understand how different individual components of the overall…

Computation and Language · Computer Science 2017-05-10 Peter Potash , Alexey Romanov , Anna Rumshisky

This paper describes a flexible and tractable bottom-up dynamic correlation modelling framework with a consistent stochastic recovery specification. The stochastic recovery specification only models the first two moments of the spot…

Pricing of Securities · Quantitative Finance 2010-04-22 Yadong Li

Successful quantitative investment usually relies on precise predictions of the future movement of the stock price. Recently, machine learning based solutions have shown their capacity to give more accurate stock prediction and become…

Machine Learning · Computer Science 2021-06-28 Hengxu Lin , Dong Zhou , Weiqing Liu , Jiang Bian

We study a model of dynamic combinatorial assignment of indivisible objects without money. We introduce a new solution concept called ``dynamic approximate competitive equilibrium from equal incomes'' (DACEEI), which stipulates that markets…

Theoretical Economics · Economics 2023-03-27 Thành Nguyen , Alexander Teytelboym , Shai Vardi

With the explosion in the availability of spatio-temporal tracking data in modern sports, there is an enormous opportunity to better analyse, learn and predict important events in adversarial group environments. In this paper, we propose a…

Computer Vision and Pattern Recognition · Computer Science 2018-05-15 Tharindu Fernando , Sridha Sridharan , Clinton Fookes , Simon Denman

In modern computer experiment applications, one often encounters the situation where various models of a physical system are considered, each implemented as a simulator on a computer. An important question in such a setting is determining…

Methodology · Statistics 2023-05-08 John C. Yannotty , Thomas J. Santner , Richard J. Furnstahl , Matthew T. Pratola

This paper proposes a novel adaptive algorithm for the automated short-term trading of financial instrument. The algorithm adopts a semantic sentiment analysis technique to inspect the Twitter posts and to use them to predict the behaviour…

Social and Information Networks · Computer Science 2018-01-17 Paolo Cremonesi , Chiara Francalanci , Alessandro Poli , Roberto Pagano , Luca Mazzoni , Alberto Maggioni , Mehdi Elahi

This study enhances a Deep Q-Network (DQN) trading model by incorporating advanced techniques like Prioritized Experience Replay, Regularized Q-Learning, Noisy Networks, Dueling, and Double DQN. Extensive tests on assets like BTC/USD and…

Computational Finance · Quantitative Finance 2023-11-21 Gang Hu
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