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The method of model averaging has become an important tool to deal with model uncertainty, for example in situations where a large amount of different theories exist, as are common in economics. Model averaging is a natural and formal…

Applications · Statistics 2019-02-05 Mark F. J. Steel

This paper addresses the challenges faced in large-volume trading, where executing substantial orders can result in significant market impact and slippage. To mitigate these effects, this study proposes a volatility-volume-based order…

Computational Finance · Quantitative Finance 2024-12-18 Ritwika Chattopadhyay , Abhishek Malichkar , Zhixuan Ren , Xinyue Zhang

In economic applications, model averaging has found principal use examining the validity of various theories related to observed heterogeneity in outcomes such as growth, development, and trade.Though often easy to articulate, these…

Applications · Statistics 2019-10-16 Alex Lenkoski , Fredrik Lohne Aanes

We consider the problem of recovering an unknown vector from noisy data with the help of projection estimates. The goal is to find a convex combination of these estimates with the minimal risk. We study an aggregation method based on the…

Statistics Theory · Mathematics 2012-06-20 Yu. Golubev

Quantum defect embedding theory (QDET) is a many-body embedding method designed to describe condensed systems with correlated electrons localized within a given region of space, for example spin defects in semiconductors and insulators.…

Materials Science · Physics 2025-08-28 Siyuan Chen , Victor Wen-zhe Yu , Yu Jin , Marco Govoni , Giulia Galli

A challenge arising from the local Bayesian assimilation of data in an atmospheric flow simulation is the imbalances it may introduce. Acoustic fast-mode imbalances of the order of the slower dynamics can be negated by employing a blended…

Numerical Analysis · Mathematics 2024-03-11 Ray Chew , Tommaso Benacchio , Gottfried Hastermann , Rupert Klein

Unlabeled data are increasingly prevalent in contemporary economic studies, yet their effective use for improving prediction remains challenging because the outcomes are often costly or even infeasible to observe. Machine learning methods…

Methodology · Statistics 2026-05-12 Fuzhi Xu , Xingyu Yan , Xinyu Zhang

A new efficient ensemble prediction strategy is developed for a general turbulent model framework with emphasis on the nonlinear interactions between large and small scale variables. The high computational cost in running large ensemble…

Fluid Dynamics · Physics 2023-02-22 Di Qi , Jian-Guo Liu

As a hybrid of artificial intelligence and quantum computing, quantum neural networks (QNNs) have gained significant attention as a promising application on near-term, noisy intermediate-scale quantum (NISQ) devices. Conventional QNNs are…

Quantum Physics · Physics 2024-04-09 Yadong Wu , Juan Yao , Pengfei Zhang , Xiaopeng Li

The model averaging problem is to average multiple models to achieve a prediction accuracy not much worse than that of the best single model in terms of mean squared error. It is known that if the models are misspecified, model averaging is…

Statistics Theory · Mathematics 2018-02-28 Dong Dai , Lei Han , Ting Yang , Tong Zhang

We present two machine learning frameworks for forecasting aggregated curves and optimizing storage in the EPEX SPOT day-ahead market. First, a fast parametric model forecasts hourly demand and supply curves in a low-dimensional and…

Machine Learning · Computer Science 2026-01-29 Julian Gutierrez , Redouane Silvente

While we expect quantum computers to surpass their classical counterparts in the future, current devices are prone to high error rates and techniques to minimise the impact of these errors are indispensable. There already exists a variety…

Quantum Physics · Physics 2021-04-16 Tom Weber , Matthias Riebisch , Kerstin Borras , Karl Jansen , Dirk Krücker

Information asymmetry in financial markets, often amplified by strategically crafted corporate narratives, undermines the effectiveness of conventional textual analysis. We propose a novel multimodal framework for financial risk assessment…

Machine Learning · Computer Science 2025-08-27 Xiaoliang Chen , Xin Yu , Le Chang , Teng Jing , Jiashuai He , Ze Wang , Yangjun Luo , Xingyu Chen , Jiayue Liang , Yuchen Wang , Jiaying Xie

Interactions among multiple time series of positive random variables are crucial in diverse financial applications, from spillover effects to volatility interdependence. A popular model in this setting is the vector Multiplicative Error…

Computation · Statistics 2021-07-12 Nicola Donelli , Stefano Peluso , Antonietta Mira

In this work, we propose a novel framework for density forecast combination by constructing time-varying weights based on time series features, which is called Feature-based Bayesian Forecasting Model Averaging (FEBAMA). Our framework…

Econometrics · Economics 2022-06-15 Li Li , Yanfei Kang , Feng Li

In model-free deep reinforcement learning (RL) algorithms, using noisy value estimates to supervise policy evaluation and optimization is detrimental to the sample efficiency. As this noise is heteroscedastic, its effects can be mitigated…

Machine Learning · Computer Science 2022-05-04 Vincent Mai , Kaustubh Mani , Liam Paull

We present a quantum algorithm for European option pricing in finance, where the key idea is to work in the unary representation of the asset value. The algorithm needs novel circuitry and is divided in three parts: first, the amplitude…

LLMs have demonstrated significant potential in quantitative finance by processing vast unstructured data to emulate human-like analytical workflows. However, current LLM-based methods primarily follow either an Asset-Centric paradigm…

Artificial Intelligence · Computer Science 2026-02-13 Taian Guo , Haiyang Shen , Junyu Luo , Zhongshi Xing , Hanchun Lian , Jinsheng Huang , Binqi Chen , Luchen Liu , Yun Ma , Ming Zhang

We present an efficient numerical scheme based on Monte Carlo integration to approximate statistical solutions of the incompressible Euler equations. The scheme is based on finite volume methods, which provide a more flexible framework than…

Numerical Analysis · Mathematics 2022-09-07 Carlos Parés-Pulido

We study risk-sharing equilibria with general convex costs on the agents' trading rates. For an infinite-horizon model with linear state dynamics and exogenous volatilities, we prove that the equilibrium returns mean-revert around their…

Mathematical Finance · Quantitative Finance 2020-04-16 Lukas Gonon , Johannes Muhle-Karbe , Xiaofei Shi