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In this article we study the allocation of a budget to promote an opinion in a group of agents. We assume that their opinion dynamics are based on the well-known voter model. We are interested in finding the most efficient use of a budget…

Computer Science and Game Theory · Computer Science 2017-11-23 Susana Rey , Patricio Reyes , Alonso Silva

We show that disentangling sentiment-induced biases from fundamental expectations significantly improves the accuracy and consistency of probabilistic forecasts. Using data from 1994 to 2017, we analyze 15 stochastic models and…

Risk Management · Quantitative Finance 2021-01-26 Ricardo Crisóstomo

A novel social networks sentiment analysis model is proposed based on Twitter sentiment score (TSS) for real-time prediction of the future stock market price FTSE 100, as compared with conventional econometric models of investor sentiment…

Social and Information Networks · Computer Science 2020-04-23 Xinyi Guo , Jinfeng Li

With the advent of fast-paced information dissemination and retrieval, it has become inherently important to resort to automated means of predicting stock market prices. In this paper, we propose Taureau, a framework that leverages Twitter…

Computers and Society · Computer Science 2023-04-03 Nicholas Milikich , Joshua Johnson

We build a state-of-the-art dynamic model of private asset allocation that considers five key features of private asset markets: (1) the illiquid nature of private assets, (2) timing lags between capital commitments, capital calls, and…

Portfolio Management · Quantitative Finance 2025-03-04 Hui Chen , Giovanni Gambarotta , Simon Scheidegger , Yu Xu

Opinion Dynamics lacks a theoretical basis. In this article, I propose to use a decision-theoretic framework, based on the updating of subjective probabilities, as that basis. We will see we get a basic tool for a better understanding of…

Physics and Society · Physics 2012-11-21 Andre C. R. Martins

In this paper, we are going to develop a natural language processing model to help us to predict stocks in the long term. The whole network includes two modules. The first module is a natural language processing model which seeks out…

Artificial Intelligence · Computer Science 2021-12-22 Tuo Sun , Wanrong Zheng , Shufan Yu , Mengxun Li , Jiarui Ou

In the present paper a model of a market consisting of real and financial interacting sectors is studied. Agents populating the stock market are assumed to be not able to observe the true underlying fundamental, and their beliefs are biased…

General Finance · Quantitative Finance 2018-06-13 Fausto Cavalli , Ahmad Naimzada , Nicolò Pecora , Marina Pireddu

We propose and study the integration of sentiment analysis and deep reinforcement learning ensemble algorithms for stock trading by evaluating strategies capable of dynamically altering their active agent given the concurrent market…

Trading and Market Microstructure · Quantitative Finance 2024-11-21 Andrew Ye , James Xu , Vidyut Veedgav , Yi Wang , Yifan Yu , Daniel Yan , Ryan Chen , Vipin Chaudhary , Shuai Xu

Financial Sentiment Analysis (FSA) traditionally relies on human-annotated sentiment labels to infer investor sentiment and forecast market movements. However, inferring the potential market impact of words based on their human-perceived…

Computational Engineering, Finance, and Science · Computer Science 2025-03-04 Hamid Moradi-Kamali , Mohammad-Hossein Rajabi-Ghozlou , Mahdi Ghazavi , Ali Soltani , Amirreza Sattarzadeh , Reza Entezari-Maleki

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

A Markovian modulation captures the trend in the market and influences the market coefficients accordingly. The different scenarios presented by the market are modeled as the distinct states of a discrete-time Markov chain. In our paper, we…

Optimization and Control · Mathematics 2022-02-09 Bernardo D'Auria , José A. Salmerón

In this paper, we explore the usability of different natural language processing models for the sentiment analysis of social media applied to financial market prediction, using the cryptocurrency domain as a reference. We study how the…

Computation and Language · Computer Science 2022-04-22 Ali Raheman , Anton Kolonin , Igors Fridkins , Ikram Ansari , Mukul Vishwas

The marvel of markets lies in the fact that dispersed information is instantaneously processed and used to adjust the price of goods, services and assets. Financial markets are particularly efficient when it comes to processing information;…

Trading and Market Microstructure · Quantitative Finance 2018-07-19 Stefan Feuerriegel , Helmut Prendinger

The Black-Litterman model combines investors' personal views with historical data and gives optimal portfolio weights. In this paper we will introduce the original Black-Litterman model (section 1), we will modify the model such that it…

Statistical Finance · Quantitative Finance 2018-12-27 Mihnea S. Andrei , John S. J. Hsu

We consider a multi-stock continuous time incomplete market model with random coefficients. We study the investment problem in the class of strategies which do not use direct observations of the appreciation rates of the stocks, but rather…

Mathematical Finance · Quantitative Finance 2015-02-10 Nikolai Dokuchaev

Economic and financial theories and practice essentially deal with uncertain future. Humans encounter uncertainty in different kinds of activity, from sensory-motor control to dynamics in financial markets, what has been subject of…

Statistical Finance · Quantitative Finance 2021-10-08 Felix Polyakov

The dynamics of market prices is described as the evolution of opinions in the trading community regarding future market behavior. The price then is a function of the voting process of the market players in favor to raise or reduce the…

Statistical Finance · Quantitative Finance 2015-03-31 Elad Oster , Alexander Feigel

It is widely acknowledged that extracting market sentiments from news data benefits market predictions. However, existing methods of using financial sentiments remain simplistic, relying on equal-weight and static aggregation to manage…

Machine Learning · Computer Science 2024-09-10 Mengyu Wang , Tiejun Ma

The Black-Litterman model extends the framework of the Markowitz Modern Portfolio Theory to incorporate investor views. We consider a case where multiple view estimates, including uncertainties, are given for the same underlying subset of…

Portfolio Management · Quantitative Finance 2023-02-01 Trent Spears , Stefan Zohren , Stephen Roberts