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When constructing portfolios, a key problem is that a lot of financial time series data are sparse, making it challenging to apply machine learning methods. Polymodel theory can solve this issue and demonstrate superiority in portfolio…

Portfolio Management · Quantitative Finance 2025-02-17 Siqiao Zhao , Zhikang Dong , Zeyu Cao , Raphael Douady

Application of neural network architectures for financial prediction has been actively studied in recent years. This paper presents a comparative study that investigates and compares feed-forward neural network (FNN) and adaptive neural…

Statistical Finance · Quantitative Finance 2019-06-14 Yuxuan Huang , Luiz Fernando Capretz , Danny Ho

Federated learning's poor performance in the presence of heterogeneous data remains one of the most pressing issues in the field. Personalized federated learning departs from the conventional paradigm in which all clients employ the same…

Machine Learning · Computer Science 2024-02-27 Mengen Luo , Ercan Engin Kuruoglu

Economy is severely dependent on the stock market. An uptrend usually corresponds to prosperity while a downtrend correlates to recession. Predicting the stock market has thus been a centre of research and experiment for a long time. Being…

Statistical Finance · Quantitative Finance 2022-11-15 Shayan Halder

This paper presents an innovative online portfolio selection model, situated within a meta-learning framework, that leverages a mixture policies strategy. The core idea is to simulate a fund that employs multiple fund managers, each skilled…

Optimization and Control · Mathematics 2025-05-13 Jiayu Shen , Jia Liu , Zhiping Chen

Machine learning models underpin many modern financial systems for use cases such as fraud detection and churn prediction. Most are based on supervised learning with hand-engineered features, which relies heavily on the availability of…

Machine Learning · Computer Science 2024-01-05 Piotr Skalski , David Sutton , Stuart Burrell , Iker Perez , Jason Wong

The financial market trend forecasting method is emerging as a hot topic in financial markets today. Many challenges still currently remain, and various researches related thereto have been actively conducted. Especially, recent research of…

Statistical Finance · Quantitative Finance 2020-04-06 Jonghyeon Min

For the assessment of the financial soundness of a pension fund, it is necessary to take into account mortality forecasting so that longevity risk is consistently incorporated into future cash flows. In this article, we employ machine…

Machine Learning · Statistics 2025-04-09 Eduardo Fraga L. de Melo , Helton Graziadei , Rodrigo Targino

A diversified risk-adjusted time-series momentum (TSMOM) portfolio can deliver substantial abnormal returns and offer some degree of tail risk protection during extreme market events. The performance of existing TSMOM strategies, however,…

Computational Finance · Quantitative Finance 2023-06-29 Joel Ong , Dorien Herremans

In this paper we propose a novel application of Gaussian processes (GPs) to financial asset allocation. Our approach is deeply rooted in Stochastic Portfolio Theory (SPT), a stochastic analysis framework introduced by Robert Fernholz that…

Portfolio Management · Quantitative Finance 2016-07-06 Yves-Laurent Kom Samo , Alexander Vervuurt

High-frequency trading (HFT) represents a pivotal and intensely competitive domain within the financial markets. The velocity and accuracy of data processing exert a direct influence on profitability, underscoring the significance of this…

Machine Learning · Computer Science 2024-12-03 Yuxin Fan , Zhuohuan Hu , Lei Fu , Yu Cheng , Liyang Wang , Yuxiang Wang

This article is an introduction to machine learning for financial forecasting, planning and analysis (FP\&A). Machine learning appears well suited to support FP\&A with the highly automated extraction of information from large amounts of…

Econometrics · Economics 2021-07-13 Helmut Wasserbacher , Martin Spindler

This study presents a deep reinforcement learning approach for global hedging of long-term financial derivatives. A similar setup as in Coleman et al. (2007) is considered with the risk management of lookback options embedded in guarantees…

Risk Management · Quantitative Finance 2020-07-31 Alexandre Carbonneau

Stock embedding is a method for vector representation of stocks. There is a growing demand for vector representations of stock, i.e., stock embedding, in wealth management sectors, and the method has been applied to various tasks such as…

Computation and Language · Computer Science 2024-08-07 Takehiro Takayanagi , Hiroki Sakaji , Kiyoshi Izumi

In the age of the Internet, people's lives are increasingly dependent on today's network technology. Maintaining network integrity and protecting the legitimate interests of users is at the heart of network construction. Threat detection is…

Cryptography and Security · Computer Science 2024-02-20 Yulu Gong , Mengran Zhu , Shuning Huo , Yafei Xiang , Hanyi Yu

Financial portfolio optimization is a widely studied problem in mathematics, statistics, financial and computational literature. It adheres to determining an optimal combination of weights associated with financial assets held in a…

Portfolio Management · Quantitative Finance 2013-01-21 Ankit Dangi

Portfolio Selection is an important real-world financial task and has attracted extensive attention in artificial intelligence communities. This task, however, has two main difficulties: (i) the non-stationary price series and complex asset…

Machine Learning · Computer Science 2020-03-09 Yifan Zhang , Peilin Zhao , Qingyao Wu , Bin Li , Junzhou Huang , Mingkui Tan

Precisely forecasting the excess returns of an asset (e.g., Tesla stock) is beneficial to all investors. However, the unpredictability of market dynamics, influenced by human behaviors, makes this a challenging task. In prior research,…

Pricing of Securities · Quantitative Finance 2023-05-19 Jingjing Guo

Most recent works model the market structure of the stock market as a correlation network of the stocks. They apply pre-defined patterns to extract correlation information from the time series of stocks. Without considering the influences…

Computational Engineering, Finance, and Science · Computer Science 2018-09-13 Yue Wang , Chenwei Zhang , Shen Wang , Philip S. Yu , Lu Bai , Lixin Cui

We demonstrate a method for training a convolutional neural network with simulated images for usage on real-world experimental data. Modern machine learning methods require large, robust training data sets to generate accurate predictions.…

Soft Condensed Matter · Physics 2019-08-15 Eric N. Minor , Stian D. Howard , Adam A. S. Green , Cheol S. Park , Noel A. Clark