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We study tail risk dynamics in high-frequency financial markets and their connection with trading activity and market uncertainty. We introduce a dynamic extreme value regression model accommodating both stationary and local unit-root…

Econometrics · Economics 2023-01-05 Julien Hambuckers , Li Sun , Luca Trapin

Understanding stock market instability is a key question in financial management as practitioners seek to forecast breakdowns in asset co-movements which expose portfolios to rapid and devastating collapses in value. The structure of these…

Computational Engineering, Finance, and Science · Computer Science 2022-12-12 Dragos Gorduza , Xiaowen Dong , Stefan Zohren

Recent technological developments have changed the fundamental ways stock markets function, bringing regulatory instances to assess the benefits of these developments. In parallel, the ongoing machine learning revolution and its multiple…

Trading and Market Microstructure · Quantitative Finance 2023-02-09 Johann Lussange , Boris Gutkin

Prediction of future movement of stock prices has been a subject matter of many research work. In this work, we propose a hybrid approach for stock price prediction using machine learning and deep learning-based methods. We select the NIFTY…

Statistical Finance · Quantitative Finance 2021-10-12 Sidra Mehtab , Jaydip Sen

In this chapter, we consider volatility swap, variance swap and VIX future pricing under different stochastic volatility models and jump diffusion models which are commonly used in financial market. We use convexity correction approximation…

Mathematical Finance · Quantitative Finance 2017-12-08 Anatoliy Swishchuk , Zijia Wang

Volt-var control (VVC) is the problem of operating power distribution systems within healthy regimes by controlling actuators in power systems. Existing works have mostly adopted the conventional routine of representing the power systems (a…

Machine Learning · Computer Science 2022-06-22 Xian Yeow Lee , Soumik Sarkar , Yubo Wang

Weather forecasting is an essential task to tackle global climate change. Weather forecasting requires the analysis of multivariate data generated by heterogeneous meteorological sensors. These sensors comprise of ground-based sensors,…

Machine Learning · Computer Science 2023-02-16 Gaganpreet Singh , Surya Durbha , Shreelakshmi C R

The use of intelligent systems for stock market predictions has been widely established. In this paper, we investigate how the seemingly chaotic behavior of stock markets could be well represented using several connectionist paradigms and…

Artificial Intelligence · Computer Science 2007-05-23 Ajith Abraham , Ninan Sajith Philip , P. Saratchandran

The use of factor stochastic volatility models requires choosing the number of latent factors used to describe the dynamics of the financial returns process; however, empirical evidence suggests that the number and makeup of pertinent…

Applications · Statistics 2019-03-06 Taylor R. Brown

In this paper we consider classes of models that have been recently developed for quantitative finance that involve modelling a highly complex multivariate, multi-attribute stochastic process known as the Limit Order Book (LOB). The LOB is…

Computational Finance · Quantitative Finance 2015-04-23 Gareth W. Peters , Efstathios Panayi , Francois Septier

The recurrent neural network and its variants have shown great success in processing sequences in recent years. However, this deep neural network has not aroused much attention in anomaly detection through predictively process monitoring.…

Machine Learning · Computer Science 2023-09-06 Jiaqi Qiu , Yu Lin , Inez Zwetsloot

With technological advancements and the exponential growth of data, we have been unfolding different capabilities of neural networks in different sectors. In this paper, I have tried to use a specific type of Neural Network known as…

Neural and Evolutionary Computing · Computer Science 2021-06-04 Kunal Bhardwaj

Our article considers a regression model with observed factors. The observed factors have a flexible stochastic volatility structure that has separate dynamics for the volatilities and the correlation matrix. The correlation matrix of the…

Other Statistics · Statistics 2011-07-14 Yu-Cheng Ku , Peter Bloomfield , Robert Kohn

We examine the relationship between trading volumes, number of transactions, and volatility using daily stock data of the Tokyo Stock Exchange. Following the mixture of distributions hypothesis, we use trading volumes and the number of…

Statistical Finance · Quantitative Finance 2018-01-19 Tetsuya Takaishi , Ting Ting Chen

This paper will analyze and implement a time series dynamic neural network to predict daily closing stock prices. Neural networks possess unsurpassed abilities in identifying underlying patterns in chaotic, non-linear, and seemingly random…

Statistical Finance · Quantitative Finance 2023-06-23 David Noel

ChatGPT has demonstrated remarkable capabilities across various natural language processing (NLP) tasks. However, its potential for inferring dynamic network structures from temporal textual data, specifically financial news, remains an…

Statistical Finance · Quantitative Finance 2023-09-20 Zihan Chen , Lei Nico Zheng , Cheng Lu , Jialu Yuan , Di Zhu

Many traffic prediction applications rely on uncertainty estimates instead of the mean prediction. Statistical traffic prediction literature has a complete subfield devoted to uncertainty modelling, but recent deep learning traffic…

Machine Learning · Computer Science 2020-12-10 Tijs Maas , Peter Bloem

We present an interactive probing tool to create, modify and analyze what-if scenarios for multivariate time series models. The solution is applied to freight trading, where analysts can carry out sensitivity analysis on freight rates by…

Other Statistics · Statistics 2021-09-23 Haonan Xu , Haotian Li , Yong Wang

Stock networks, constructed from stock price time series, are a well-established tool for the characterization of complex behavior in stock markets. Following Mantegna's seminal paper, the linear Pearson's correlation coefficient between…

Statistical Finance · Quantitative Finance 2018-06-27 David Hartman , Jaroslav Hlinka

In this paper we present a novel approach to the determination of fat tails in financial data by studying the information contained in the limit order book. In an order-driven market buyers and sellers may submit limit orders, which are…

Trading and Market Microstructure · Quantitative Finance 2015-03-19 Alex Langnau , Yanko Punchev
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