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We show that recent stock market fluctuations are characterized by the cumulative distributions whose tails on short, minute time scales exhibit power scaling with the scaling index alpha > 3 and this index tends to increase quickly with…

Statistical Finance · Quantitative Finance 2009-11-13 S. Drozdz , M. Forczek , J. Kwapien , P. Oswiecimka , R. Rak

We hypothesize that portfolio sorts based on the V/P ratio generate excess returns and consist of companies that are undervalued for prolonged periods. Results, for the US market show that high V/P portfolios outperform low V/P portfolios…

Econometrics · Economics 2025-06-03 Ahmad Haboub , Aris Kartsaklas , Vasilis Sarafidis

In this paper, we study the connection between the companies in the Swedish capital market. We consider 28 companies included in the determination of the market index OMX30. The network structure of the market is constructed using different…

Statistical Finance · Quantitative Finance 2022-11-01 Elena Farahbakhsh Touli , Hoang Nguyen , Olha Bodnar

This paper compares a series of contemporary portfolio construction approaches by employing ten U.S. stocks (TSLA, WMT, BAC, GS, LLY, MRK, GOOG, META, AAPL and XOM) in a time frame from September 2023 to December 2025. The paper explores…

Portfolio Management · Quantitative Finance 2026-05-29 Ajay Kumar Verma , Shravya Barkam

This paper investigates the application of machine learning models, Long Short-Term Memory (LSTM), one-dimensional Convolutional Neural Networks (1D CNN), and Logistic Regression (LR), for predicting stock trends based on fundamental…

Statistical Finance · Quantitative Finance 2024-10-08 John Phan , Hung-Fu Chang

Time-series forecasts play a critical role in business planning. However, forecasters typically optimize objectives that are agnostic to downstream business goals and thus can produce forecasts misaligned with business preferences. In this…

Machine Learning · Computer Science 2023-08-28 Helen Zhou , Sercan O. Arik , Jingtao Wang

Institutional allocators often evaluate structured strategies on the basis of marketed backtests -- hypothetical track records constructed by applying a strategy's rules to historical data prior to any live trading, also referred to as…

Portfolio Management · Quantitative Finance 2026-04-22 Chang Liu

Forecasting stock prices can be interpreted as a time series prediction problem, for which Long Short Term Memory (LSTM) neural networks are often used due to their architecture specifically built to solve such problems. In this paper, we…

Machine Learning · Computer Science 2021-06-14 Akash Doshi , Alexander Issa , Puneet Sachdeva , Sina Rafati , Somnath Rakshit

This article presents an empirical study of thirteen derivative markets for commodity and financial assets. It compares the statistical properties of futures contracts's daily returns at different maturities, from 1998 to 2010 and for…

Statistical Finance · Quantitative Finance 2015-05-20 Delphine Lautier , Franck Raynaud

We study the complexity of the stock market by constructing $\epsilon$-machines of Standard and Poor's 500 index from February 1983 to April 2006 and by measuring the statistical complexities. It is found that both the statistical…

Physics and Society · Physics 2015-06-26 Joongwoo Brian Park , Jeong Won Lee , Jae-Suk Yang , Hang-Hyun Jo , Hie-Tae Moon

Order placement tactics play a crucial role in high-frequency trading algorithms and their design is based on understanding the dynamics of the order book. Using high quality high-frequency data and a set of microstructural features, we…

Trading and Market Microstructure · Quantitative Finance 2024-09-30 Timothée Fabre , Vincent Ragel

In recent years, Large Language Models (LLMs) have demonstrated remarkable versatility across various applications, including natural language understanding, domain-specific knowledge tasks, etc. However, applying LLMs to complex,…

Computation and Language · Computer Science 2024-11-12 Xinqi Yang , Scott Zang , Yong Ren , Dingjie Peng , Zheng Wen

Users of heterogeneous computing systems face two problems: firstly, in understanding the trade-off relationships between the observable characteristics of their applications, such as latency and quality of the result, and secondly, how to…

Distributed, Parallel, and Cluster Computing · Computer Science 2016-03-15 Gordon Inggs , David B. Thomas , Wayne Luk

This study employs the annual unbalanced panel data of 42 listed banks in China from 2006 to 2021, adopts the non-radial and non-oriented super-efficiency Data envelopment analysis (Super-SBM-UND-VRS based DEA) model considering NPL as…

General Finance · Quantitative Finance 2024-08-30 Yun Liao , Ruihui Xu

In allusion to some contradicting results in existing research, this paper selects China's latest stock data from 2005 to 2020 for empirical analysis. By choosing this periods' data, we avoid the periods of China's significant stock market…

General Finance · Quantitative Finance 2021-12-07 Zhijing Zhang , Yue Yu , Qinghua Ma , Haixiang Yao

Performance forecasting is an age-old problem in economics and finance. Recently, developments in machine learning and neural networks have given rise to non-linear time series models that provide modern and promising alternatives to…

Statistical Finance · Quantitative Finance 2022-01-21 Carmina Fjellström

We pose the estimation and predictability of stock market performance. Three cases are taken: US, Japan, Germany, the monthly index of the value of realized investment in stocks, prices plus the value of dividend payments (OECD data). Once…

General Economics · Economics 2023-05-11 Ignacio Escanuela Romana , Clara Escanuela Nieves

A linear multi-factor model is one of the most important tools in equity portfolio management. The linear multi-factor models are widely used because they can be easily interpreted. However, financial markets are not linear and their…

Machine Learning · Computer Science 2019-02-01 Kei Nakagawa , Tomoki Ito , Masaya Abe , Kiyoshi Izumi

For the London Stock Exchange we demonstrate that the signs of orders obey a long-memory process. The autocorrelation function decays roughly as $\tau^{-\alpha}$ with $\alpha \approx 0.6$, corresponding to a Hurst exponent $H \approx 0.7$.…

Other Condensed Matter · Physics 2008-12-02 Fabrizio Lillo , J. Doyne Farmer

US Institutions with more than $100 million assets under management must disclose part of their long positions into the SEC Form 13F-HR on a quarterly basis. We consider the number of variations in holdings between consecutive reporting…

Mathematical Finance · Quantitative Finance 2022-09-20 Deborah Miori , Mihai Cucuringu
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