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The discrepancy between realized volatility and the market's view of volatility has been known to predict individual equity options at the monthly horizon. It is not clear how this predictability depends on a forecast's ability to predict…

Statistical Finance · Quantitative Finance 2025-06-10 Austin Pollok

Rough volatility models are very appealing because of their remarkable fit of both historical and implied volatilities. However, due to the non-Markovian and non-semimartingale nature of the volatility process, there is no simple way to…

Probability · Mathematics 2018-04-12 Eduardo Abi Jaber , Omar El Euch

The forecasting and computation of the stability of chaotic systems from partial observations are tasks for which traditional equation-based methods may not be suitable. In this computational paper, we propose data-driven methods to (i)…

Adaptation and Self-Organizing Systems · Physics 2023-09-26 Elise Özalp , Georgios Margazoglou , Luca Magri

The application of deep learning models for stock price forecasting in emerging markets remains underexplored despite their potential to capture complex temporal dependencies. This study develops and evaluates a Long Short-Term Memory…

Trading and Market Microstructure · Quantitative Finance 2025-09-19 Ahad Yaqoob , Syed M. Abdullah

We introduce a fast and flexible Machine Learning (ML) framework for pricing derivative products whose valuation depends on volatility surfaces. By parameterizing volatility surfaces with the 5-parameter stochastic volatility inspired (SVI)…

Pricing of Securities · Quantitative Finance 2025-05-30 Lijie Ding , Egang Lu , Kin Cheung

Trading and investing in stocks for some is their full-time career, while for others, it's simply a supplementary income stream. Universal among all investors is the desire to turn a profit. The key to achieving this goal is…

Computational Engineering, Finance, and Science · Computer Science 2024-09-10 Rifa Gowani , Zaryab Kanjiani

In this paper, we introduce a consistency-driven dual LSTM framework for accurately learning both the forward and inverse kinematics of a pneumatically actuated soft robotic arm integrated into a wearable device. This approach effectively…

Robotics · Computer Science 2026-03-19 Xingyu Chen , Yi Xiong , Li Wen

The evaluation of the financial markets to predict their behaviour have been attempted using a number of approaches, to make smart and profitable investment decisions. Owing to the highly non-linear trends and inter-dependencies, it is…

Statistical Finance · Quantitative Finance 2022-08-02 Shaswat Mohanty , Anirudh Vijay , Nandagopan Gopakumar

The task of predicting future stock values has always been one that is heavily desired albeit very difficult. This difficulty arises from stocks with non-stationary behavior, and without any explicit form. Hence, predictions are best made…

Computational Finance · Quantitative Finance 2019-04-19 Hieu Quang Nguyen , Abdul Hasib Rahimyar , Xiaodi Wang

Numerical modeling of different structural materials that have highly nonlinear behaviors has always been a challenging problem in engineering disciplines. Experimental data is commonly used to characterize this behavior. This study aims to…

Machine Learning · Computer Science 2020-07-28 Elif Ecem Bas , Denis Aslangil , Mohamed A. Moustafa

With the advent of Big Data, nowadays in many applications databases containing large quantities of similar time series are available. Forecasting time series in these domains with traditional univariate forecasting procedures leaves great…

Machine Learning · Computer Science 2018-09-13 Kasun Bandara , Christoph Bergmeir , Slawek Smyl

Volatility models of price fluctuations are well studied in the econometrics literature, with more than 50 years of theoretical and empirical findings. The recent advancements in neural networks (NN) in the deep learning field have…

Computational Finance · Quantitative Finance 2022-05-17 German Rodikov , Nino Antulov-Fantulin

This research explores the reliability of deep learning, specifically Long Short-Term Memory (LSTM) networks, for estimating the Hurst parameter in fractional stochastic processes. The study focuses on three types of processes: fractional…

Machine Learning · Statistics 2024-01-04 Dániel Boros , Bálint Csanády , Iván Ivkovic , Lóránt Nagy , András Lukács , László Márkus

In [Han \& Schied, 2023, \textit{arXiv 2307.02582}], an easily computable scale-invariant estimator $\widehat{\mathscr{R}}^s_n$ was constructed to estimate the Hurst parameter of the drifted fractional Brownian motion $X$ from its…

Statistical Finance · Quantitative Finance 2025-09-09 Xiyue Han , Alexander Schied

In this paper, the prediction capabilities of recurrent neural networks are assessed in the low-order model of near-wall turbulence by Moehlis {\it et al.} (New J. Phys. {\bf 6}, 56, 2004). Our results show that it is possible to obtain…

Deep learning offers new tools for portfolio optimization. We present an end-to-end framework that directly learns portfolio weights by combining Long Short-Term Memory (LSTM) networks to model temporal patterns, Graph Attention Networks…

Portfolio Management · Quantitative Finance 2026-05-27 Yun Lin , Jiawei Lou , Jinghe Zhang

Rough volatility is a well-established statistical stylised fact of financial assets. This property has lead to the design and analysis of various new rough stochastic volatility models. However, most of these developments have been carried…

Mathematical Finance · Quantitative Finance 2019-10-31 Mehdi Tomas , Mathieu Rosenbaum

Regional rainfall-runoff modeling is an old but still mostly out-standing problem in Hydrological Sciences. The problem currently is that traditional hydrological models degrade significantly in performance when calibrated for multiple…

Machine Learning · Computer Science 2019-11-12 Frederik Kratzert , Daniel Klotz , Guy Shalev , Günter Klambauer , Sepp Hochreiter , Grey Nearing

In this paper, we consider estimating spot/instantaneous volatility matrices of high-frequency data collected for a large number of assets. We first combine classic nonparametric kernel-based smoothing with a generalised shrinkage technique…

Econometrics · Economics 2026-04-22 Ruijun Bu , Degui Li , Oliver Linton , Hanchao Wang

We propose a novel machine learning approach for forecasting the distribution of stock returns using a rich set of firm-level and market predictors. Our method combines a two-stage quantile neural network with spline interpolation to…

General Finance · Quantitative Finance 2025-08-05 Jozef Barunik , Martin Hronec , Ondrej Tobek
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