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This paper introduces one new multivariate volatility model that can accommodate an appropriately defined network structure based on low-frequency and high-frequency data. The model reduces the number of unknown parameters and the…

Statistical Finance · Quantitative Finance 2022-04-28 Huiling Yuan , Guodong Li , Junhui Wang

We present a general method for approximately contracting tensor networks with an arbitrary connectivity. This enables us to release the computational power of tensor networks to wide use in inference and learning problems defined on…

Computational Physics · Physics 2020-08-12 Feng Pan , Pengfei Zhou , Sujie Li , Pan Zhang

Complex computer simulators are increasingly used across fields of science as generative models tying parameters of an underlying theory to experimental observations. Inference in this setup is often difficult, as simulators rarely admit a…

Machine Learning · Statistics 2020-04-17 Gilles Louppe , Joeri Hermans , Kyle Cranmer

In finance, implied volatility is an important indicator that reflects the market situation immediately. Many practitioners estimate volatility using iteration methods, such as the Newton--Raphson (NR) method. However, if numerous implied…

Computational Finance · Quantitative Finance 2022-10-31 Geon Lee , Tae-Kyoung Kim , Hyun-Gyoon Kim , Jeonggyu Huh

Probabilistic predictions from neural networks which account for predictive uncertainty during classification is crucial in many real-world and high-impact decision making settings. However, in practice most datasets are trained on…

Machine Learning · Computer Science 2022-09-30 Satya Borgohain , Klaus Ackermann , Ruben Loaiza-Maya

Reaction-diffusion models are widely used to study spatially-extended chemical reaction systems. In order to understand how the dynamics of a reaction-diffusion model are affected by changes in its input parameters, efficient methods for…

Quantitative Methods · Quantitative Biology 2017-03-08 Christopher Lester , Christian A. Yates , Ruth E. Baker

We use deep neural networks to estimate an asset pricing model for individual stock returns that takes advantage of the vast amount of conditioning information, while keeping a fully flexible form and accounting for time-variation. The key…

Statistical Finance · Quantitative Finance 2021-08-12 Luyang Chen , Markus Pelger , Jason Zhu

We show how the Equation-Free approach for mutliscale computations can be exploited to extract, in a computational strict and systematic way the emergent dynamical attributes, from detailed large-scale microscopic stochastic models, of…

Social and Information Networks · Computer Science 2013-10-02 Konstantinos G. Spiliotis , Constantinos I. Siettos

We propose a neural network approach to price EU call options that significantly outperforms some existing pricing models and comes with guarantees that its predictions are economically reasonable. To achieve this, we introduce a class of…

Computational Finance · Quantitative Finance 2020-03-30 Yongxin Yang , Yu Zheng , Timothy M. Hospedales

The rough Bergomi (rBergomi) model can accurately describe the historical and implied volatilities, and has gained much attention in the past few years. However, there are many hidden unknown parameters or even functions in the model. In…

Computational Finance · Quantitative Finance 2024-02-06 Changqing Teng , Guanglian Li

Neural responses in the cortex change over time both systematically, due to ongoing plasticity and learning, and seemingly randomly, due to various sources of noise and variability. Most previous work considered each of these processes,…

Neurons and Cognition · Quantitative Biology 2018-07-25 Laurence Aitchison , Guillaume Hennequin , Mate Lengyel

This paper presents a novel application of graph neural networks for modeling and estimating network heterogeneity. Network heterogeneity is characterized by variations in unit's decisions or outcomes that depend not only on its own…

Econometrics · Economics 2024-01-30 Yike Wang , Chris Gu , Taisuke Otsu

A long memory and non-linear realized volatility model class is proposed for direct Value at Risk (VaR) forecasting. This model, referred to as RNN-HAR, extends the heterogeneous autoregressive (HAR) model, a framework known for efficiently…

Risk Management · Quantitative Finance 2024-08-27 Rangika Peiris , Minh-Ngoc Tran , Chao Wang , Richard Gerlach

In this contribution, we provide a comprehensive evaluation of graph neural networks applied to Boolean satisfiability problems, accompanied by an intuitive explanation of the mechanisms enabling the model to generalize to different…

Machine Learning · Computer Science 2025-04-03 David Mojžíšek , Jan Hůla , Ziwei Li , Ziyu Zhou , Mikoláš Janota

Triangular arbitrage is a profitable trading strategy in financial markets that exploits discrepancies in currency exchange rates. Traditional methods for detecting triangular arbitrage opportunities, such as exhaustive search algorithms…

Trading and Market Microstructure · Quantitative Finance 2025-10-14 Di Zhang

Areas of computational mechanics such as uncertainty quantification and optimization usually involve repeated evaluation of numerical models that represent the behavior of engineering systems. In the case of complex nonlinear systems…

Machine Learning · Computer Science 2024-10-03 A. O. M. Kilicsoy , J. Liedmann , M. A. Valdebenito , F. -J. Barthold , M. G. R. Faes

In modern society, the trading methods and strategies used in financial market have gradually changed from traditional on-site trading to electronic remote trading, and even online automatic trading performed by a pre-programmed computer…

Trading and Market Microstructure · Quantitative Finance 2022-11-24 Wei-Chang Yeh , Yu-Hsin Hsieh , Chia-Ling Huang

A common theoretical approach to understanding neural networks is to take an infinite-width limit, at which point the outputs become Gaussian process (GP) distributed. This is known as a neural network Gaussian process (NNGP). However, the…

Machine Learning · Statistics 2025-06-26 Ben Anson , Edward Milsom , Laurence Aitchison

Bayesian parameter inference for complex stochastic simulators is challenging due to intractable likelihood functions. Existing simulation-based inference methods often require large number of simulations and become costly to use in…

Machine Learning · Computer Science 2026-04-06 Vasilis Gkolemis , Christos Diou , Michael U. Gutmann

We present a neural net algorithm for parameter estimation in the context of large cosmological data sets. Cosmological data sets present a particular challenge to pattern-recognition algorithms since the input patterns (galaxy redshift…

Astrophysics · Physics 2007-05-23 Nicholas G. Phillips , A. Kogut