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A Hawkes process model with a time-varying background rate is developed for analyzing the high-frequency financial data. In our model, the logarithm of the background rate is modeled by a linear model with a relatively large number of…

Statistical Finance · Quantitative Finance 2017-07-24 Takahiro Omi , Yoshito Hirata , Kazuyuki Aihara

Stochastic clocks represent a class of time change methods for incorporating trading activity into continuous-time financial models, with the ability to deal with typical asymmetrical and tail risks in financial returns. In this paper we…

Statistical Finance · Quantitative Finance 2024-08-20 Zhe Fei , Weixuan Xia

Fluctuations in the stock market rapidly shape the economic world and consumer markets, impacting millions of individuals. Hence, accurately forecasting it is essential for mitigating risks, including those associated with inactivity.…

Statistical Finance · Quantitative Finance 2025-01-15 Konstantinos-Leonidas Bisdoulis

This paper proposes TIP-Search, a time-predictable inference scheduling framework for real-time market prediction under uncertain workloads. Motivated by the strict latency demands in high-frequency financial systems, TIP-Search dynamically…

Artificial Intelligence · Computer Science 2025-06-18 Xibai Wang

This paper gives a brief overview on the nonparametric techniques that are useful for financial econometric problems. The problems include estimation and inferences of instantaneous returns and volatility functions of time-homogeneous and…

Statistics Theory · Mathematics 2008-12-10 Jianqing Fan

Providing personalized recommendations for insurance products is particularly challenging due to the intrinsic and distinctive features of the insurance domain. First, unlike more traditional domains like retail, movie etc., a large amount…

Information Retrieval · Computer Science 2024-03-04 Simone Borg Bruun , Christina Lioma , Maria Maistro

Using a large quarterly macroeconomic dataset for the period 1960-2017, we document the ability of specific financial ratios from the housing market and firms' aggregate balance sheets to predict GDP over medium-term horizons in the United…

Econometrics · Economics 2024-01-22 Graziano Moramarco

This paper introduces a high frequency trade execution model to evaluate the economic impact of supervised machine learners. Extending the concept of a confusion matrix, we present a 'trade information matrix' to attribute the expected…

Trading and Market Microstructure · Quantitative Finance 2017-12-06 Matthew F Dixon

In this article, I present a new approach and a novel model to the study of the life cycle of wages. The key idea is that wage can be thought as remuneration paid for the competency. It is assumed with the approach that there are three…

Physics and Society · Physics 2007-05-23 S. I. Maximov

With the rapid growth of fintech, personalized financial product recommendations have become increasingly important. Traditional methods like collaborative filtering or content-based models often fail to capture users' latent preferences…

Information Retrieval · Computer Science 2025-06-09 Yushang Zhao , Yike Peng , Dannier Li , Yuxin Yang , Chengrui Zhou , Jing Dong

This paper discusses financial fraud detection in imbalanced dataset using homogeneous and non-homogeneous Poisson processes. The probability of predicting fraud on the financial transaction is derived. Applying our methodology to the…

Risk Management · Quantitative Finance 2019-12-11 Régis Houssou , Jérôme Bovay , Stephan Robert

This paper addresses the challenge of model uncertainty in quantitative finance, where decisions in portfolio allocation, derivative pricing, and risk management rely on estimating stochastic models from limited data. In practice, the…

Computational Finance · Quantitative Finance 2025-06-10 Hans Buehler , Blanka Horvath , Yannick Limmer , Thorsten Schmidt

The recently launched LinkedIn Salary product has been designed with the goal of providing compensation insights to the world's professionals and thereby helping them optimize their earning potential. We describe the overall design and…

Social and Information Networks · Computer Science 2017-09-05 Krishnaram Kenthapadi , Stuart Ambler , Liang Zhang , Deepak Agarwal

Accurate household short-term energy consumption forecasting (STECF) is crucial for home energy management, but it is technically challenging, due to highly random behaviors of individual residential users. To improve the accuracy of STECF…

Signal Processing · Electrical Eng. & Systems 2024-02-16 Heyang Yu , Yuxi Sun , Yintao Liu , Guangchao Geng , Quanyuan Jiang

Bitcoin is firmly becoming a mainstream asset in our global society. Its highly volatile nature has traders and speculators flooding into the market to take advantage of its significant price swings in the hope of making money. This work…

Machine Learning · Computer Science 2021-10-29 Nathan Crone , Eoin Brophy , Tomas Ward

Forecasting based on financial time-series is a challenging task since most real-world data exhibits nonstationary property and nonlinear dependencies. In addition, different data modalities often embed different nonlinear relationships…

Machine Learning · Computer Science 2019-03-19 Dat Thanh Tran , Juho Kanniainen , Moncef Gabbouj , Alexandros Iosifidis

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

It is an important task to model realized volatilities for high-frequency data in finance and economics and, as arguably the most popular model, the heterogeneous autoregressive (HAR) model has dominated the applications in this area.…

Methodology · Statistics 2023-03-07 Huiling Yuan , Kexin Lu , Yifeng Guo , Guodong Li

Consistent alpha generation, i.e., maintaining an edge over the market, underpins the ability of asset traders to reliably generate profits. Technical indicators and trading strategies are commonly used tools to determine when to…

Artificial Intelligence · Computer Science 2021-06-15 Yapeng Jasper Hu , Ralph van Gurp , Ashay Somai , Hugo Kooijman , Jan S. Rellermeyer

In today's world, banks use artificial intelligence to optimize diverse business processes, aiming to improve customer experience. Most of the customer-related tasks can be categorized into two groups: 1) local ones, which focus on a…

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