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This paper comprehensively reviews the application of machine learning (ML) and AI in finance, specifically in the context of asset pricing. It starts by summarizing the traditional asset pricing models and examining their limitations in…

Statistical Finance · Quantitative Finance 2024-03-12 Junyi Ye , Bhaskar Goswami , Jingyi Gu , Ajim Uddin , Guiling Wang

The endeavor of stock trend forecasting is principally focused on predicting the future trajectory of the stock market, utilizing either manual or technical methodologies to optimize profitability. Recent advancements in machine learning…

Computational Engineering, Finance, and Science · Computer Science 2025-02-19 Mingjie Wang , Juanxi Tian , Mingze Zhang , Jianxiong Guo , Weijia Jia

Multimodal stock trading volume movement prediction with stock-related news is one of the fundamental problems in the financial area. Existing multimodal works that train models from scratch face the problem of lacking universal knowledge…

Computation and Language · Computer Science 2023-09-12 Ruibo Chen , Zhiyuan Zhang , Yi Liu , Ruihan Bao , Keiko Harimoto , Xu Sun

Price prediction algorithms propose prices for every product or service according to market trends, projected demand, and other characteristics, including government rules, international transactions, and speculation and expectation. As the…

Machine Learning · Statistics 2024-04-01 Amir Eshaghi Chaleshtori

We study a dynamic asset pricing problem in which a representative agent is ambiguous about the aggregate endowment growth rate and trades a risky stock, human capital, and a risk-free asset to maximize her preference value of consumption…

Pricing of Securities · Quantitative Finance 2025-12-04 Jiacheng Fan , Xue Dong He , Ruocheng Wu

We introduce a new class of neural networks designed to be convex functions of their inputs, leveraging the principle that any convex function can be represented as the supremum of the affine functions it dominates. These neural networks,…

Machine Learning · Statistics 2024-11-21 Vincent Lemaire , Gilles Pagès , Christian Yeo

We introduce the Consensus-Bottleneck Asset Pricing Model (CB-APM), which embeds aggregate analyst consensus as a structural bottleneck, treating professional beliefs as a sufficient statistic for the market's high-dimensional information…

Pricing of Securities · Quantitative Finance 2026-04-27 Changeun Kim , Younwoo Jeong , Bong-Gyu Jang

As data marketplaces become increasingly central to the digital economy, it is crucial to design efficient pricing mechanisms that optimize revenue while ensuring fair and adaptive pricing. We introduce the Maximum Auction-to-Posted Price…

Machine Learning · Statistics 2026-04-06 Yingqi Gao , Wenlu Xu , Jin J. Zhou , Hua Zhou , Yong Chen , Xiaowu Dai

We propose a model that forecasts market correlation structure from link- and node-based financial network features using machine learning. For such, market structure is modeled as a dynamic asset network by quantifying time-dependent…

Computational Finance · Quantitative Finance 2021-10-25 Douglas Castilho , Tharsis T. P. Souza , Soong Moon Kang , João Gama , André C. P. L. F. de Carvalho

Stock price forecasting is a highly complex and vitally important field of research. Recent advancements in deep neural network technology allow researchers to develop highly accurate models to predict financial trends. We propose a novel…

Computational Finance · Quantitative Finance 2021-02-03 Pratyush Muthukumar , Jie Zhong

Forecasting stock market prices remains a complex challenge for traders, analysts, and engineers due to the multitude of factors that influence price movements. Recent advancements in artificial intelligence (AI) and natural language…

Statistical Finance · Quantitative Finance 2024-11-12 Kaushal Attaluri , Mukesh Tripathi , Srinithi Reddy , Shivendra

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

Being able to predict stock prices might be the unspoken wish of stock investors. Although stock prices are complicated to predict, there are many theories about what affects their movements, including interest rates, news and social media.…

Machine Learning · Computer Science 2021-05-05 Roderick Karlemstrand , Ebba Leckström

Traditional approaches to classify the political bias of news articles have failed to generate accurate, generalizable results. Existing networks premised on CNNs and DNNs lack a model to identify and extrapolate subtle indicators of bias…

Neural and Evolutionary Computing · Computer Science 2022-07-27 Agastya Sridharan , Natarajan S

Word embedding models such as the skip-gram learn vector representations of words' semantic relationships, and document embedding models learn similar representations for documents. On the other hand, topic models provide latent…

Computation and Language · Computer Science 2019-09-12 Kamrun Naher Keya , Yannis Papanikolaou , James R. Foulds

Prediction of stock prices plays a significant role in aiding the decision-making of investors. Considering its importance, a growing literature has emerged trying to forecast stock prices with improved accuracy. In this study, we introduce…

Statistical Finance · Quantitative Finance 2023-11-14 Md Sabbirul Haque , Md Shahedul Amin , Jonayet Miah , Duc Minh Cao , Ashiqul Haque Ahmed

Long-term investors, different from short-term traders, focus on examining the underlying forces that affect the well-being of a company. They rely on fundamental analysis which attempts to measure the intrinsic value an equity.…

Neural and Evolutionary Computing · Computer Science 2019-05-14 Jessie Sun

Application of machine learning for stock prediction is attracting a lot of attention in recent years. A large amount of research has been conducted in this area and multiple existing results have shown that machine learning methods could…

Statistical Finance · Quantitative Finance 2022-02-14 Yuxuan Huang , Luiz Fernando Capretz , Danny Ho

The research paper empirically investigates several machine learning algorithms to forecast stock prices depending on insider trading information. Insider trading offers special insights into market sentiment, pointing to upcoming changes…

Machine Learning · Computer Science 2025-07-08 Amitabh Chakravorty , Nelly Elsayed

Neural networks are powerful tools for classification and regression in static environments. This paper describes a technique for creating an ensemble of neural networks that adapts dynamically to changing conditions. The model separates…

Artificial Intelligence · Computer Science 2008-12-16 Baruch Lubinsky , Bekir Genc , Tshilidzi Marwala