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This study investigates the application of causal discovery algorithms in equity markets, with a focus on their potential to build investment strategies. An investment strategy was developed based on the causal structures identified by…

Computational Finance · Quantitative Finance 2024-08-30 Ruijie Tang

Linear structural causal models (SCMs) -- in which each observed variable is generated by a subset of the other observed variables as well as a subset of the exogenous sources -- are pervasive in causal inference and casual discovery.…

Machine Learning · Computer Science 2022-11-09 Yuqin Yang , Mohamed Nafea , AmirEmad Ghassami , Negar Kiyavash

In many scientific disciplines, coarse-grained causal models are used to explain and predict the dynamics of more fine-grained systems. Naturally, such models require appropriate macrovariables. Automated procedures to detect suitable…

Machine Learning · Computer Science 2021-11-30 Benedikt Höltgen

Prediction invariance of causal models under heterogeneous settings has been exploited by a number of recent methods for causal discovery, typically focussing on recovering the causal parents of a target variable of interest. Existing…

Methodology · Statistics 2026-03-10 Alice Polinelli , Veronica Vinciotti , Ernst C. Wit

Estimating causal effects from nonexperimental data is a fundamental problem in many fields of science. A key component of this task is selecting an appropriate set of covariates for confounding adjustment to avoid bias. Most existing…

Machine Learning · Computer Science 2025-10-28 Zheng Li , Xichen Guo , Feng Xie , Yan Zeng , Hao Zhang , Zhi Geng

Understanding causal relationships in multivariate time series is essential for predicting and controlling dynamic systems in fields like economics, neuroscience, and climate science. However, existing causal discovery methods often assume…

Machine Learning · Computer Science 2025-02-20 Abdellah Rahmani , Pascal Frossard

Structural equation models and Bayesian networks have been widely used to analyze causal relations between continuous variables. In such frameworks, linear acyclic models are typically used to model the datagenerating process of variables.…

Machine Learning · Computer Science 2014-08-12 Shohei Shimizu , Aapo Hyvarinen , Yoshinobu Kawahara

We introduce a causal modeling framework that captures the input-output behavior of predictive models (e.g., machine learning models). The framework enables us to identify features that directly cause the predictions, which has broad…

Machine Learning · Computer Science 2025-05-20 Yizuo Chen , Amit Bhatia

We consider the problem of causal discovery (a.k.a., causal structure learning) in a multi-domain setting. We assume that the causal functions are invariant across the domains, while the distribution of the exogenous noise may vary. Under…

Machine Learning · Computer Science 2025-05-01 Kasra Jalaldoust , Saber Salehkaleybar , Negar Kiyavash

We develop a novel approach towards causal inference. Rather than structural equations over a causal graph, we learn stochastic differential equations (SDEs) whose stationary densities model a system's behavior under interventions. These…

Machine Learning · Computer Science 2024-03-19 Lars Lorch , Andreas Krause , Bernhard Schölkopf

Time-varying causal models provide a powerful framework for studying dynamic scientific systems, yet most existing approaches assume that the underlying causal network is known a priori - an assumption rarely satisfied in real-world domains…

Machine Learning · Computer Science 2026-05-28 Dmitry Zaytsev , Valentina Kuskova , Michael Coppedge

Despite the excelling performance of machine learning models, understanding their decisions remains a long-standing goal. Although commonly used attribution methods from explainable AI attempt to address this issue, they typically rely on…

Machine Learning · Computer Science 2025-11-20 Juan Miguel Lopez Alcaraz , Nils Strodthoff

Nonlinear systems with model uncertainty are often described by stochastic differential equations. Some techniques from random dynamical systems are discussed. They are relevant to better understanding of solution processes of stochastic…

Dynamical Systems · Mathematics 2008-11-25 Jinqiao Duan

Effective quantification of uncertainty is an essential and still missing step towards a greater adoption of deep-learning approaches in different applications, including mission-critical ones. In particular, investigations on the…

Machine Learning · Computer Science 2023-04-14 Marco Forgione , Dario Piga

Causal discovery procedures aim to deduce causal relationships among variables in a multivariate dataset. While various methods have been proposed for estimating a single causal model or a single equivalence class of models, less attention…

Methodology · Statistics 2024-10-08 Y. Samuel Wang , Mladen Kolar , Mathias Drton

A stationary spatial model is an idealization and we expect that the true dependence structures of physical phenomena are spatially varying, but how should we handle this non-stationarity in practice? We study the challenges involved in…

Methodology · Statistics 2015-09-15 Geir-Arne Fuglstad , Daniel Simpson , Finn Lindgren , Håvard Rue

The aim in many sciences is to understand the mechanisms that underlie the observed distribution of variables, starting from a set of initial hypotheses. Causal discovery allows us to infer mechanisms as sets of cause and effect…

Machine Learning · Computer Science 2025-03-05 Ashka Shah , Adela DePavia , Nathaniel Hudson , Ian Foster , Rick Stevens

Temporal causal discovery is a crucial task aimed at uncovering the causal relations within time series data. The latest temporal causal discovery methods usually train deep learning models on prediction tasks to uncover the causality…

Machine Learning · Computer Science 2024-06-25 Lingbai Kong , Wengen Li , Hanchen Yang , Yichao Zhang , Jihong Guan , Shuigeng Zhou

We propose a new method of discovering causal structures, based on the detection of local, spontaneous changes in the underlying data-generating model. We analyze the classes of structures that are equivalent relative to a stream of…

Artificial Intelligence · Computer Science 2013-01-14 Jin Tian , Judea Pearl

Discovering causal relationships in complex multivariate time series is a fundamental scientific challenge. Traditional methods often falter, either by relying on restrictive linear assumptions or on conditional independence tests that…

Machine Learning · Computer Science 2025-08-05 Gian Marco Paldino , Gianluca Bontempi