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The clustering of companies within a specific stock market index is studied by means of super-paramagnetic transitions of an appropriate q-state Potts model where the spins correspond to companies and the interactions are functions of the…

Statistical Mechanics · Physics 2009-10-31 L. Kullmann , J. Kertesz , R. N. Mantegna

We consider the problem of fast time-series data clustering. Building on previous work modeling the correlation-based Hamiltonian of spin variables we present an updated fast non-expensive Agglomerative Likelihood Clustering algorithm…

Computational Finance · Quantitative Finance 2022-03-22 Lionel Yelibi , Tim Gebbie

The measured correlations of financial time series in subsequent epochs change considerably as a function of time. When studying the whole correlation matrices, quasi-stationary patterns, referred to as market states, are seen by applying…

Statistical Finance · Quantitative Finance 2020-11-03 Anton J. Heckens , Sebastian M. Krause , Thomas Guhr

High-density DNA arrays, used to monitor gene expression at a genomic scale, have produced vast amounts of information which require the development of efficient computational methods to analyze them. The important first step is to extract…

Biological Physics · Physics 2009-10-31 G. Getz , E. Levine , E. Domany , M. Q. Zhang

Correlation clustering is a central topic in unsupervised learning, with many applications in ML and data mining. In correlation clustering, one receives as input a signed graph and the goal is to partition it to minimize the number of…

Data Structures and Algorithms · Computer Science 2021-06-17 Vincent Cohen-Addad , Silvio Lattanzi , Slobodan Mitrović , Ashkan Norouzi-Fard , Nikos Parotsidis , Jakub Tarnawski

A pairwise clustering approach is applied to the analysis of the Dow Jones index companies, in order to identify similar temporal behavior of the traded stock prices. To this end, the chaotic map clustering algorithm is used, where a map is…

Disordered Systems and Neural Networks · Physics 2010-01-31 N. Basalto , R. Bellotti , F. De Carlo , P. Facchi , S. Pascazio

Previous research explored various conditions of financial markets based on the similarity of correlation structures and classified as market states. We introduce modifications to previous selection criteria for these market states, mainly…

Statistical Finance · Quantitative Finance 2023-09-13 Hirdesh K. Pharasi , Eduard Seligman , Suchetana Sadhukhan , Parisa Majari , Thomas H. Seligman

We tackle the challenge of estimating grouping structures and factor loadings in asset pricing models, where traditional regressions struggle due to sparse data and high noise. Existing approaches, such as those using fused penalties and…

Methodology · Statistics 2025-12-30 Liyuan Cui , Guanhao Feng , Yuefeng Han , Jiayan Li

We review some methods recently used in the literature to detect the existence of a certain degree of common behavior of stock returns belonging to the same economic sector. Specifically, we discuss methods based on random matrix theory and…

Physics and Society · Physics 2021-08-25 C. Coronnello , M. Tumminello , F. Lillo , S. Micciche` , R. N. Mantegna

This paper aims to develop new techniques to describe joint behavior of stocks, beyond regression and correlation. For example, we want to identify the clusters of the stocks that move together. Our work is based on applying Kernel…

Statistical Finance · Quantitative Finance 2018-03-28 Charu Sharma , Amber Habib , Sunil Bowry

In this paper, we introduce a Fast and Scalable Semi-supervised Multi-view Subspace Clustering (FSSMSC) method, a novel solution to the high computational complexity commonly found in existing approaches. FSSMSC features linear…

Machine Learning · Computer Science 2024-08-13 Huaming Ling , Chenglong Bao , Jiebo Song , Zuoqiang Shi

Financial stock returns correlations have been studied in the prism of random matrix theory, to distinguish the signal from the "noise". Eigenvalues of the matrix that are above the rescaled Marchenko Pastur distribution can be interpreted…

Statistical Finance · Quantitative Finance 2025-08-19 Ixandra Achitouv

The use of intelligent systems for stock market predictions has been widely established. In this paper, we investigate how the seemingly chaotic behavior of stock markets could be well represented using several connectionist paradigms and…

Artificial Intelligence · Computer Science 2007-05-23 Ajith Abraham , Ninan Sajith Philip , P. Saratchandran

Factored stochastic constraint programming (FSCP) is a formalism to represent multi-stage decision making problems under uncertainty. FSCP models support factorized probabilistic models and involve constraints over decision and random…

Artificial Intelligence · Computer Science 2019-09-25 Behrouz Babaki , Golnoosh Farnadi , Gilles Pesant

Spectral clustering is a popular method for effectively clustering nonlinearly separable data. However, computational limitations, memory requirements, and the inability to perform incremental learning challenge its widespread application.…

Machine Learning · Computer Science 2023-11-15 Jo-Chun Chen , Hung-Hsuan Chen

Subspace clustering refers to the problem of clustering high-dimensional data into a union of low-dimensional subspaces. Current subspace clustering approaches are usually based on a two-stage framework. In the first stage, an affinity…

Machine Learning · Computer Science 2019-10-22 Shuai Yang , Wenqi Zhu , Yuesheng Zhu

Cross-market portfolio optimization has become increasingly complex with the globalization of financial markets and the growth of high-frequency, multi-dimensional datasets. Traditional artificial neural networks, while effective in certain…

Portfolio Management · Quantitative Finance 2025-10-21 Amarendra Mohan , Ameer Tamoor Khan , Shuai Li , Xinwei Cao , Zhibin Li

Asynchronous trading in high-frequency financial markets introduces significant biases into econometric analysis, distorting risk estimates and leading to suboptimal portfolio decisions. Existing synchronization methods, such as the…

Econometrics · Economics 2025-07-17 Xinbing Kong , Cheng Liu , Bin Wu

Probabilistic Circuits (PCs) are a promising avenue for probabilistic modeling. They combine advantages of probabilistic graphical models (PGMs) with those of neural networks (NNs). Crucially, however, they are tractable probabilistic…

Machine Learning · Computer Science 2021-06-07 Anji Liu , Guy Van den Broeck

We introduce a novel statistical significance-based approach for clustering hierarchical data using semi-parametric linear mixed-effects models designed for responses with laws in the exponential family (e.g., Poisson and Bernoulli). Within…

Methodology · Statistics 2025-02-04 Alessandra Ragni , Chiara Masci , Francesca Ieva , Anna Maria Paganoni
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