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We propose a pairs trading model that incorporates a time-varying volatility of the Constant Elasticity of Variance type. Our approach is based on stochastic control techniques; given a fixed time horizon and a portfolio of two…

Optimization and Control · Mathematics 2021-11-05 T. N. Li , A. Tourin

The focus of this paper is on identifying the most effective selling strategy for pairs trading of stocks. In pairs trading, a long position is held in one stock while a short position is held in another. The goal is to determine the…

Mathematical Finance · Quantitative Finance 2023-07-31 Ruyi Liu , Jingzhi Tie , Zhen Wu , Qing Zhang

Alpha signals for statistical arbitrage strategies are often driven by latent factors. This paper analyses how to optimally trade with latent factors that cause prices to jump and diffuse. Moreover, we account for the effect of the trader's…

Mathematical Finance · Quantitative Finance 2018-06-13 Philippe Casgrain , Sebastian Jaimungal

This paper presents a theory and an empirical evaluation of Higher-Order Quantum-Inspired Genetic Algorithms. Fundamental notions of the theory have been introduced, and a novel Order-2 Quantum-Inspired Genetic Algorithm (QIGA2) has been…

Neural and Evolutionary Computing · Computer Science 2014-07-04 Robert Nowotniak , Jacek Kucharski

In recommender systems, it is well-established that both accuracy and diversity are crucial for generating high-quality recommendation lists. However, achieving a balance between these two typically conflicting objectives remains a…

Information Retrieval · Computer Science 2026-04-10 Elaheh Lotfian , Alireza Kabgani

Diversity represents an important aspect of genetic programming, being directly correlated with search performance. When considered at the genotype level, diversity often requires expensive tree distance measures which have a negative…

Neural and Evolutionary Computing · Computer Science 2020-04-21 Bogdan Burlacu , Michael Affenzeller , Gabriel Kronberger , Michael Kommenda

Statistical arbitrage exploits temporal price differences between similar assets. We develop a framework to jointly identify similar assets through factors, identify mispricing and form a trading policy that maximizes risk-adjusted…

Machine Learning · Computer Science 2025-10-14 Elliot L. Epstein , Rose Wang , Jaewon Choi , Markus Pelger

Pair trading is one of the most effective statistical arbitrage strategies which seeks a neutral profit by hedging a pair of selected assets. Existing methods generally decompose the task into two separate steps: pair selection and trading.…

Computational Finance · Quantitative Finance 2023-09-26 Weiguang Han , Boyi Zhang , Qianqian Xie , Min Peng , Yanzhao Lai , Jimin Huang

For many types of machine learning algorithms, one can compute the statistically `optimal' way to select training data. In this paper, we review how optimal data selection techniques have been used with feedforward neural networks. We then…

Artificial Intelligence · Computer Science 2014-11-17 D. A. Cohn , Z. Ghahramani , M. I. Jordan

In this paper we consider how we can include index options in enhanced indexation. We present the concept of an \enquote{option strategy} which enables us to treat options as an artificial asset. An option strategy for a known set of…

Computational Finance · Quantitative Finance 2026-03-10 Cristiano Arbex Valle , John E Beasley

Nowadays genetic algorithm (GA) is greatly used in engineering pedagogy as an adaptive technique to learn and solve complex problems and issues. It is a meta-heuristic approach that is used to solve hybrid computation challenges. GA…

Other Computer Science · Computer Science 2020-07-27 Tanweer Alam , Shamimul Qamar , Amit Dixit , Mohamed Benaida

In this paper, we demonstrate the combination of machine learning and three dimensional numerical simulations for multi-objective optimization of low pressure die casting. The cooling of molten metal inside the mold is achieved typically by…

Computational Engineering, Finance, and Science · Computer Science 2020-10-06 Shantanu Shahane , Narayana Aluru , Placid Ferreira , Shiv G Kapoor , Surya Pratap Vanka

In this paper, we study stochastic non-convex optimization with non-convex random functions. Recent studies on non-convex optimization revolve around establishing second-order convergence, i.e., converging to a nearly second-order optimal…

Optimization and Control · Mathematics 2017-11-02 Mingrui Liu , Tianbao Yang

Drilling investment is pivotal to operational planning in oil and gas (O\&G) exploration. Conventional deployment relies heavily on fragmented expert assessments of geological and economic factors, with limited integration ability of…

Optimization and Control · Mathematics 2026-03-20 Chao Min , Junyi Cui , Stanisław Migórski , Yonglan Xie , Qingxia Zhang , Jun Peng

In today's financial markets, quantitative trading has become an essential trading method, with the MACD indicator widely employed in quantitative trading strategies. This paper begins by screening and cleaning the dataset, establishing a…

Computational Engineering, Finance, and Science · Computer Science 2025-02-05 Wangyu Chen , Zhenpeng Zhu

Recent researches on stock prediction using deep learning methods has been actively studied. This is the task to predict the movement of stock prices in the future based on historical trends. The approach to predicting the movement based…

Statistical Finance · Quantitative Finance 2021-10-01 Jaeyoung Cheong , Heejoon Lee , Minjung Kang

This thesis investigates the use of problem-specific knowledge to enhance a genetic algorithm approach to multiple-choice optimisation problems.It shows that such information can significantly enhance performance, but that the choice of…

Neural and Evolutionary Computing · Computer Science 2010-07-05 Uwe Aickelin

We propose an algorithm and a new method to tackle the classification problems. We propose a multi-output neural tree (MONT) algorithm, which is an evolutionary learning algorithm trained by the non-dominated sorting genetic algorithm…

Neural and Evolutionary Computing · Computer Science 2022-02-21 Varun Ojha , Giuseppe Nicosia

This work focuses on a class of general decentralized constraint-coupled optimization problems. We propose a novel nested primal-dual gradient algorithm (NPGA), which can achieve linear convergence under the weakest known condition, and its…

Optimization and Control · Mathematics 2025-05-06 Jingwang Li , Housheng Su

Molecular discovery has brought great benefits to the chemical industry. Various molecule design techniques are developed to identify molecules with desirable properties. Traditional optimization methods, such as genetic algorithms,…

Biomolecules · Quantitative Biology 2025-11-05 Chris Zhuang , Debadyuti Mukherjee , Yingzhou Lu , Tianfan Fu , Ruqi Zhang