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Principal component analysis (PCA), the most popular dimension-reduction technique, has been used to analyze high-dimensional data in many areas. It discovers the homogeneity within the data and creates a reduced feature space to capture as…

Methodology · Statistics 2026-03-24 Daning Bi , Le Chang , Yanrong Yang

We propose improved methods to identify stock groups using the correlation matrix of stock price changes. By filtering out the marketwide effect and the random noise, we construct the correlation matrix of stock groups in which nontrivial…

Physics and Society · Physics 2008-12-02 Dong-Hee Kim , Hawoong Jeong

In this paper, we present a novel trading strategy that integrates reinforcement learning methods with clustering techniques for portfolio management in multi-period trading. Specifically, we leverage the clustering method to categorize…

Portfolio Management · Quantitative Finance 2023-10-03 Zhengyong Jiang , Jeyan Thiayagalingam , Jionglong Su , Jinjun Liang

By analyzing a large data set of daily returns with data clustering technique, we identify economic sectors as clusters of assets with a similar economic dynamics. The sector size distribution follows Zipf's law. Secondly, we find that…

Statistical Mechanics · Physics 2008-12-02 Matteo Marsili

Since the beginning of the new millennium, stock markets went through every state from long-time troughs, trade suspensions to all-time highs. The literature on asset pricing hence assumes random processes to be underlying the movement of…

Statistical Finance · Quantitative Finance 2019-06-26 Tanya Araújo , Maximilian Göbel

The study of the critical dynamics in complex systems is always interesting yet challenging. Here, we choose financial market as an example of a complex system, and do a comparative analyses of two stock markets - the S&P 500 (USA) and…

Statistical Finance · Quantitative Finance 2018-11-14 Hirdesh K. Pharasi , Kiran Sharma , Rakesh Chatterjee , Anirban Chakraborti , Francois Leyvraz , Thomas H. Seligman

We study the time dependence of maximal spanning trees and asset graphs based on correlation matrices of stock returns. In these networks the nodes represent companies and links are related to the correlation coefficients between them.…

Physics and Society · Physics 2009-11-13 Tapio Heimo , Kimmo Kaski , Jari Saramaki

As the number of publicly traded companies as well as the amount of their financial data grows rapidly, it is highly desired to have tracking, analysis, and eventually stock selections automated. There have been few works focusing on…

Statistical Finance · Quantitative Finance 2014-06-04 Sercan Arik , Sukru Burc Eryilmaz , Adam Goldberg

We analyze a fixed panel of S\&P 500 stocks from 1996 to 2026 using complementary static and kinetic Ising models applied to daily binary open-to-close movements. The static pairwise model provides a long-run maximum-entropy summary of…

Applications · Statistics 2026-05-26 Sebin Oh , Marta C. Gonzáleza , Ziqi Wang

The continuing neuroscience advances, catalysed by multidisciplinary collaborations between the biological, computational, physical and chemical areas, have implied in increasingly more complex approaches to understand and model the mammals…

Biological Physics · Physics 2010-03-17 Krissia Zawadzki , Mauro Miazaki , Luciano da F. Costa

Modern high-frequency trading (HFT) environments are characterized by sudden price spikes that present both risk and opportunity, but conventional financial models often fail to capture the required fine temporal structure. Spiking Neural…

Machine Learning · Computer Science 2025-12-08 Brian Ezinwoke , Oliver Rhodes

In this paper, we introduce a neural network framework for semi-supervised clustering (SSC) with pairwise (must-link or cannot-link) constraints. In contrast to existing approaches, we decompose SSC into two simpler classification…

Machine Learning · Computer Science 2020-01-22 Marek Śmieja , Łukasz Struski , Mário A. T. Figueiredo

In this paper, we propose a low-rank representation with symmetric constraint (LRRSC) method for robust subspace clustering. Given a collection of data points approximately drawn from multiple subspaces, the proposed technique can…

Computer Vision and Pattern Recognition · Computer Science 2017-05-16 Jie Chen , Hua Mao , Yongsheng Sang , Zhang Yi

We describe a new optimization scheme for finding high-quality correlation clusterings in planar graphs that uses weighted perfect matching as a subroutine. Our method provides lower-bounds on the energy of the optimal correlation…

Computer Vision and Pattern Recognition · Computer Science 2012-08-03 Julian Yarkony , Alexander T. Ihler , Charless C. Fowlkes

This paper investigates the dynamics of in the S&P500 index from daily returns for the last 30 years. Using a stochastic geometry technique, each S&P500 yearly batch of data is embedded in a subspace that can be accurately described by a…

Statistical Mechanics · Physics 2016-08-16 Tanya Araújo , Francisco Louçã

Probabilistic Circuits (PCs) are tractable representations of probability distributions allowing for exact and efficient computation of likelihoods and marginals. Recent advancements have improved the scalability of PCs either by leveraging…

Machine Learning · Computer Science 2025-06-17 Honghua Zhang , Meihua Dang , Benjie Wang , Stefano Ermon , Nanyun Peng , Guy Van den Broeck

In statistical data assimilation one seeks the largest maximum of the conditional probability distribution $P(\mathbf{X},\mathbf{p}|\mathbf{Y})$ of model states, $\mathbf{X}$, and parameters,$\mathbf{p}$, conditioned on observations…

Methodology · Statistics 2018-05-28 Sasha Shirman , Henry D. I. Abarbanel

This paper presents an efficient suboptimal model predictive control (MPC) algorithm for nonlinear switched systems subject to minimum dwell time constraints (MTC). While MTC are required for most physical systems due to stability, power…

Optimization and Control · Mathematics 2022-02-16 Yutao Chen , Mircea Lazar

We consider the problem of dynamic buying and selling of shares from a collection of $N$ stocks with random price fluctuations. To limit investment risk, we place an upper bound on the total number of shares kept at any time. Assuming that…

Portfolio Management · Quantitative Finance 2009-09-23 Michael J. Neely

Co-clustering simultaneously clusters rows and columns, revealing more fine-grained groups. However, existing co-clustering methods suffer from poor scalability and cannot handle large-scale data. This paper presents a novel and scalable…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-03-20 Zihan Wu , Zhaoke Huang , Hong Yan