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Accurate industry classification is a critical tool for many asset management applications. While the current industry gold-standard GICS (Global Industry Classification Standard) has proven to be reliable and robust in many settings, it…

Portfolio Management · Quantitative Finance 2023-10-31 Maksim Papenkov , Chris Meredith , Claire Noel , Jai Padalkar , Temple Hendrickson , Daniel Nitiutomo , Thomas Farrell

Identifying companies with similar profiles is a core task in finance with a wide range of applications in portfolio construction, asset pricing and risk attribution. When a rigorous definition of similarity is lacking, financial analysts…

Statistical Finance · Quantitative Finance 2023-08-17 Dimitrios Vamvourellis , Máté Toth , Snigdha Bhagat , Dhruv Desai , Dhagash Mehta , Stefano Pasquali

Groups of firms often achieve a competitive advantage through the formation of geo-industrial clusters. Although many exemplary clusters, such as Hollywood or Silicon Valley, have been frequently studied, systematic approaches to identify…

Social and Information Networks · Computer Science 2019-08-06 Jaehyuk Park , Ian Wood , Elise Jing , Azadeh Nematzadeh , Souvik Ghosh , Michael Conover , Yong-Yeol Ahn

Understanding and forecasting changing market conditions in complex economic systems like the financial market is of great importance to various stakeholders such as financial institutions and regulatory agencies. Based on the finding that…

Statistical Finance · Quantitative Finance 2023-05-10 Tobias Wand , Martin Heßler , Oliver Kamps

Accurate industry classification is critical for many areas of portfolio management, yet the traditional single-industry framework of the Global Industry Classification Standard (GICS) struggles to comprehensively represent risk for highly…

Portfolio Management · Quantitative Finance 2024-07-24 Maksim Papenkov

A classification of companies into sectors of the economy is important for macroeconomic analysis and for investments into the sector-specific financial indices and exchange traded funds (ETFs). Major industrial classification systems and…

Statistical Finance · Quantitative Finance 2018-01-19 Lorien X. Hayden , Ricky Chachra , Alexander A. Alemi , Paul H. Ginsparg , James P. Sethna

Effective information gathering and knowledge codification are pivotal for developing recommendation systems that promote circular economy practices. One promising approach involves the creation of a centralized knowledge repository…

Computation and Language · Computer Science 2024-10-01 Xiang Li , Lan Zhao , Junhao Ren , Yajuan Sun , Chuan Fu Tan , Zhiquan Yeo , Gaoxi Xiao

We demonstrate the existence of an empirical linkage between the nominal financial networks and the underlying economic fundamentals across countries. We construct the nominal return correlation networks from daily data to encapsulate…

General Finance · Quantitative Finance 2017-01-03 Kiran Sharma , Balagopal Gopalakrishnan , Anindya S. Chakrabarti , Anirban Chakraborti

Stock return predictability is an important research theme as it reflects our economic and social organization, and significant efforts are made to explain the dynamism therein. Statistics of strong explanative power, called "factor" have…

Statistical Finance · Quantitative Finance 2020-11-26 Kei Nakagawa , Masaya Abe , Junpei Komiyama

Company fundamentals are key to assessing companies' financial and overall success and stability. Forecasting them is important in multiple fields, including investing and econometrics. While statistical and contemporary machine learning…

Statistical Finance · Quantitative Finance 2025-06-04 Felix Divo , Eric Endress , Kevin Endler , Kristian Kersting , Devendra Singh Dhami

Labor market institutions are central for modern economies, and their polices can directly affect unemployment rates and economic growth. At the individual level, unemployment often has a detrimental impact on people's well-being and…

Social and Information Networks · Computer Science 2016-09-07 Abdullah Almaatouq

Index tracking, also known as passive investing, has gained significant traction in financial markets due to its cost-effective and efficient approach to replicating the performance of a specific market index. This review paper provides a…

Portfolio Management · Quantitative Finance 2026-01-08 Vrinda Dhingra , Amita Sharma , Anubha Goel

Categorization is an essential component for us to understand the world for ourselves and to communicate it collectively. It is therefore important to recognize that classification system are not necessarily static, especially for economic…

Social and Information Networks · Computer Science 2020-09-22 Jaehyuk Park , Morgan R. Frank , Lijun Sun , Hyejin Youn

This paper considers a portfolio trading strategy formulated by algorithms in the field of machine learning. The profitability of the strategy is measured by the algorithm's capability to consistently and accurately identify stock indices…

Machine Learning · Statistics 2014-04-08 James Brofos

Accurate greenhouse gas (GHG) emission reporting is critical for governments, businesses, and investors. However, adoption remains limited particularly among small and medium enterprises due to high implementation costs, fragmented emission…

Computation and Language · Computer Science 2025-03-28 Yanming Guo , Xiao Qian , Kevin Credit , Jin Ma

Factor analysis is a statistical technique employed to evaluate how observed variables correlate through common factors and unique variables. While it is often used to analyze price movement in the unstable stock market, it does not always…

Statistical Finance · Quantitative Finance 2014-08-13 Angela Gu , Patrick Zeng

S&P 500 Index is one of the most sought after stock indices in the world. In particular, Information Technology Sector of S&P 500 is the number one business segment of the S&P 500 in terms of market capital, annual revenue and the number of…

Statistical Finance · Quantitative Finance 2022-09-23 Jayanta K. Pokharel , Erasmus Tetteh-Bator , Chris P. Tsokos

We consider online learning of ensembles of portfolio selection algorithms and aim to regularize risk by encouraging diversification with respect to a predefined risk-driven grouping of stocks. Our procedure uses online convex optimization…

Machine Learning · Computer Science 2016-04-13 Guy Uziel , Ran El-Yaniv

We give complete algorithms and source code for constructing (multilevel) statistical industry classifications, including methods for fixing the number of clusters at each level (and the number of levels). Under the hood there are…

Portfolio Management · Quantitative Finance 2019-01-01 Zura Kakushadze , Willie Yu

The longevity and viability of construction components in a circular economy demand a robust, data-informed framework for reuse decision-making. This paper introduces a multi-level grading and classification system that combines Bayesian…

General Economics · Economics 2025-04-10 Yiping Meng , Sergio Cavalaro , Mohamed Osmani
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