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We develop a rotation-invariant neural network that provides the global minimum-variance portfolio by jointly learning how to lag-transform historical returns and marginal volatilities and how to regularise the eigenvalues of large equity…

Portfolio Management · Quantitative Finance 2026-04-22 Christian Bongiorno , Efstratios Manolakis , Rosario Nunzio Mantegna

Reinforcement learning often uses neural networks to solve complex control tasks. However, neural networks are sensitive to input perturbations, which makes their deployment in safety-critical environments challenging. This work lifts…

Machine Learning · Computer Science 2024-08-20 Manuel Wendl , Lukas Koller , Tobias Ladner , Matthias Althoff

We propose a non-asymptotic convergence analysis of a two-step approach to learn a conditional value-at-risk (VaR) and a conditional expected shortfall (ES) using Rademacher bounds, in a non-parametric setup allowing for heavy-tails on the…

Computational Finance · Quantitative Finance 2024-09-20 D Barrera , S Crépey , E Gobet , Hoang-Dung Nguyen , B Saadeddine

In artificial neural networks, learning from data is a computationally demanding task in which a large number of connection weights are iteratively tuned through stochastic-gradient-based heuristic processes over a cost-function. It is not…

Quantifying the robustness of neural networks or verifying their safety properties against input uncertainties or adversarial attacks have become an important research area in learning-enabled systems. Most results concentrate around the…

Systems and Control · Electrical Eng. & Systems 2019-10-11 Mahyar Fazlyab , Manfred Morari , George J. Pappas

Recurrent neural networks are a powerful tool, but they are very sensitive to their hyper-parameter configuration. Moreover, training properly a recurrent neural network is a tough task, therefore selecting an appropriate configuration is…

Machine Learning · Computer Science 2019-03-12 Andrés Camero , Jamal Toutouh , Enrique Alba

Recent advances in machine learning have led to a surge in adoption of neural networks for various tasks, but lack of interpretability remains an issue for many others in which an understanding of the features influencing the prediction is…

Using an artificial neural network (ANN), a fixed universe of approximately 1500 equities from the Value Line index are rank-ordered by their predicted price changes over the next quarter. Inputs to the network consist only of the ten prior…

General Finance · Quantitative Finance 2008-12-02 J. B. Satinover , D. Sornette

Recurrent neural networks are nowadays successfully used in an abundance of applications, going from text, speech and image processing to recommender systems. Backpropagation through time is the algorithm that is commonly used to train…

Machine Learning · Computer Science 2018-01-10 Cedric De Boom , Thomas Demeester , Bart Dhoedt

Neural Networks (NNs) are vulnerable to adversarial examples. Such inputs differ only slightly from their benign counterparts yet provoke misclassifications of the attacked NNs. The required perturbations to craft the examples are often…

Cryptography and Security · Computer Science 2020-09-30 Philip Sperl , Konstantin Böttinger

Neural networks achieve outstanding accuracy in classification and regression tasks. However, understanding their behavior still remains an open challenge that requires questions to be addressed on the robustness, explainability and…

Machine Learning · Computer Science 2021-05-13 Anna-Kathrin Kopetzki , Stephan Günnemann

We extend recurrent neural networks to include several flexible timescales for each dimension of their output, which mechanically improves their abilities to account for processes with long memory or with highly disparate time scales. We…

Statistical Finance · Quantitative Finance 2023-08-21 Damien Challet , Vincent Ragel

The deep learning literature is continuously updated with new architectures and training techniques. However, weight initialization is overlooked by most recent research, despite some intriguing findings regarding random weights. On the…

Neural and Evolutionary Computing · Computer Science 2022-07-19 Leonardo Scabini , Bernard De Baets , Odemir M. Bruno

This paper provides a comprehensive error analysis of learning with vector-valued random features (RF). The theory is developed for RF ridge regression in a fully general infinite-dimensional input-output setting, but nonetheless applies to…

Machine Learning · Statistics 2024-05-24 Samuel Lanthaler , Nicholas H. Nelsen

Artificial neural networks have gone through a recent rise in popularity, achieving state-of-the-art results in various fields, including image classification, speech recognition, and automated control. Both the performance and…

Neural and Evolutionary Computing · Computer Science 2016-11-08 Sean C. Smithson , Guang Yang , Warren J. Gross , Brett H. Meyer

This paper develops algorithms for high-dimensional stochastic control problems based on deep learning and dynamic programming. Unlike classical approximate dynamic programming approaches, we first approximate the optimal policy by means of…

Probability · Mathematics 2021-09-21 Côme Huré , Huyên Pham , Achref Bachouch , Nicolas Langrené

Neural networks are known to be highly sensitive to adversarial examples. These may arise due to different factors, such as random initialization, or spurious correlations in the learning problem. To better understand these factors, we…

Machine Learning · Statistics 2022-07-05 Elvis Dohmatob , Alberto Bietti

This paper presents a new algorithm, Evolutionary eXploration of Augmenting Memory Models (EXAMM), which is capable of evolving recurrent neural networks (RNNs) using a wide variety of memory structures, such as Delta-RNN, GRU, LSTM, MGU…

Neural and Evolutionary Computing · Computer Science 2019-02-12 Alexander Ororbia , Ahmed Ahmed Elsaid , Travis Desell

We study theoretical properties of a broad class of regularized algorithms with vector-valued output. These spectral algorithms include kernel ridge regression, kernel principal component regression, various implementations of gradient…

Machine Learning · Statistics 2024-05-24 Dimitri Meunier , Zikai Shen , Mattes Mollenhauer , Arthur Gretton , Zhu Li

Neural networks have been successfully used for classification tasks in a rapidly growing number of practical applications. Despite their popularity and widespread use, there are still many aspects of training and classification that are…

Machine Learning · Computer Science 2016-05-03 Ewout van den Berg