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The problem of predicting links in large networks is an important task in a variety of practical applications, including social sciences, biology and computer security. In this paper, statistical techniques for link prediction based on the…

Applications · Statistics 2021-09-01 Francesco Sanna Passino , Anna S. Bertiger , Joshua C. Neil , Nicholas A. Heard

The abundance of models of complex networks and the current insufficient validation standards make it difficult to judge which models are strongly supported by data and which are not. We focus here on likelihood maximization methods for…

Physics and Society · Physics 2014-03-26 Matus Medo

The problem of portfolio optimization is one of the most important issues in asset management. This paper proposes a new dynamic portfolio strategy based on the time-varying structures of MST networks in Chinese stock markets, where the…

Statistical Finance · Quantitative Finance 2017-04-12 Fei Ren , Ya-Nan Lu , Sai-Ping Li , Xiong-Fei Jiang , Li-Xin Zhong , Tian Qiu

Investigation of the market graph attracts a growing attention in market network analysis. One of the important problem connected with market graph is to identify it from observations. Traditional way for the market graph identification is…

Computational Finance · Quantitative Finance 2015-12-22 V. A. Kalyagin , P. A. Koldanov , P. M. Pardalos

Networks of companies can be constructed by using return correlations. A crucial issue in this approach is to select the relevant correlations from the correlation matrix. In order to study this problem, we start from an empty graph with no…

Statistical Mechanics · Physics 2009-11-10 J. -P. Onnela , K. Kaski , J. Kertesz

In this article we deal with the problem of portfolio allocation by enhancing network theory tools. We use the dependence structure of the correlations network in constructing some well-known risk-based models in which the estimation of…

Portfolio Management · Quantitative Finance 2022-04-14 Gian Paolo Clemente , Rosanna Grassi , Asmerilda Hitaj

Recent developments in deep learning techniques have motivated intensive research in machine learning-aided stock trading strategies. However, since the financial market has a highly non-stationary nature hindering the application of…

Portfolio Management · Quantitative Finance 2020-12-15 Kentaro Imajo , Kentaro Minami , Katsuya Ito , Kei Nakagawa

Correlation matrices inferred from stock return time series contain information on the behaviour of the market, especially on clusters of highly correlating stocks. Here we study a subset of New York Stock Exchange (NYSE) traded stocks and…

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

Many, if not most network analysis algorithms have been designed specifically for single-relational networks; that is, networks in which all edges are of the same type. For example, edges may either represent "friendship," "kinship," or…

Discrete Mathematics · Computer Science 2009-12-09 Marko A. Rodriguez , Joshua Shinavier

Dense networks with weighted connections often exhibit a community like structure, where although most nodes are connected to each other, different patterns of edge weights may emerge depending on each node's community membership. We…

Machine Learning · Statistics 2021-05-27 Benjamin Leinwand , Vladas Pipiras

Network analysis has been applied to various correlation matrix data. Thresholding on the value of the pairwise correlation is probably the most straightforward and common method to create a network from a correlation matrix. However, there…

Physics and Society · Physics 2020-07-01 Sadamori Kojaku , Naoki Masuda

Deep Learning models have become dominant in tackling financial time-series analysis problems, overturning conventional machine learning and statistical methods. Most often, a model trained for one market or security cannot be directly…

Machine Learning · Computer Science 2022-07-26 Mostafa Shabani , Dat Thanh Tran , Juho Kanniainen , Alexandros Iosifidis

Accurate and robust stock trend forecasting has been a crucial and challenging task, as stock price changes are influenced by multiple factors. Graph neural network-based methods have recently achieved remarkable success in this domain by…

Statistical Finance · Quantitative Finance 2024-10-11 Yingjie Niu , Lanxin Lu , Rian Dolphin , Valerio Poti , Ruihai Dong

Thresholding--the pruning of nodes or edges based on their properties or weights--is an essential preprocessing tool for extracting interpretable structure from complex network data, yet existing methods face several key limitations.…

Social and Information Networks · Computer Science 2025-10-07 Adam Schroeder , Russell Funk , Jingyi Guan , Taylor Okonek , Lori Ziegelmeier

We present the first application of modern Hopfield networks to the problem of portfolio optimization. We performed an extensive study based on combinatorial purged cross-validation over several datasets and compared our results to both…

Machine Learning · Computer Science 2025-07-08 Carlo Nicolini , Monisha Gopalan , Jacopo Staiano , Bruno Lepri

The financial industry poses great challenges with risk modeling and profit generation. These entities are intricately tied to the sophisticated prediction of stock movements. A stock forecaster must untangle the randomness and…

Statistical Finance · Quantitative Finance 2023-09-14 Luke Sanborn , Matthew Sahagun

Computing the exact likelihood of data in large Bayesian networks consisting of thousands of vertices is often a difficult task. When these models contain many deterministic conditional probability tables and when the observed values are…

Computation · Statistics 2012-06-26 Ydo Wexler , Dan Geiger

In complex networks, especially social networks, networks could be divided into disjoint partitions that the ratio between the number of internal edges (the edges between the vertices within same partition) to the number of outer edges…

Social and Information Networks · Computer Science 2019-02-07 Hamid Shahrivari Joghan , Alireza Bagheri , Meysam Azad

Machine Learning algorithms and Neural Networks are widely applied to many different areas such as stock market prediction, face recognition and population analysis. This paper will introduce a strategy based on the classic Deep…

Portfolio Management · Quantitative Finance 2020-03-16 Ziming Gao , Yuan Gao , Yi Hu , Zhengyong Jiang , Jionglong Su

Accurate prediction of stock market trends is crucial for informed investment decisions and effective portfolio management, ultimately leading to enhanced wealth creation and risk mitigation. This study proposes a novel approach for…

Machine Learning · Computer Science 2024-12-02 Lida Shahbandari , Elahe Moradi , Mohammad Manthouri