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Forecasting the volatility of financial assets is essential for various financial applications. This paper addresses the challenging task of forecasting the volatility of financial assets with limited historical data, such as new issues or…

Machine Learning · Computer Science 2025-03-18 Andreas Teller , Uta Pigorsch , Christian Pigorsch

We introduce a new deep learning architecture for predicting price movements from limit order books. This architecture uses a causal convolutional network for feature extraction in combination with masked self-attention to update features…

Computational Finance · Quantitative Finance 2020-03-03 James Wallbridge

In this paper, physics-informed neural network models are developed to predict the concentrate gold grade in froth flotation cells. Accurate prediction of concentrate grades is important for the automatic control and optimization of mineral…

Computational Engineering, Finance, and Science · Computer Science 2025-06-04 Mahdi Nasiri , Sahel Iqbal , Simo Särkkä

In this paper we develop a novel neural network model for predicting implied volatility surface. Prior financial domain knowledge is taken into account. A new activation function that incorporates volatility smile is proposed, which is used…

Computational Finance · Quantitative Finance 2021-05-31 Yu Zheng , Yongxin Yang , Bowei Chen

Time series forecasting is a key tool in financial markets, helping to predict asset prices and guide investment decisions. In highly volatile markets, such as cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), forecasting becomes more…

Trading and Market Microstructure · Quantitative Finance 2026-02-17 Mabsur Fatin Bin Hossain , Lubna Zahan Lamia , Md Mahmudur Rahman , Md Mosaddek Khan

In this paper we present a new strategy to model the subgrid-scale scalar flux in a three-dimensional turbulent incompressible flow using physics-informed neural networks (NNs). When trained from direct numerical simulation (DNS) data,…

Fluid Dynamics · Physics 2021-03-03 Hugo Frezat , Guillaume Balarac , Julien Le Sommer , Ronan Fablet , Redouane Lguensat

Model-based methods are the dominant paradigm for controlling robotic systems, though their efficacy depends heavily on the accuracy of the model used. Deep neural networks have been used to learn models of robot dynamics from data, but…

Robotics · Computer Science 2020-04-23 Jayesh K. Gupta , Kunal Menda , Zachary Manchester , Mykel J. Kochenderfer

In the paper written by Klibanov et al, it proposes a novel method to calculate implied volatility of a European stock options as a solution to ill-posed inverse problem for the Black-Scholes equation. In addition, it proposes a trading…

Numerical Analysis · Mathematics 2025-01-29 Wanchaloem Wunkaew , Yuqing Liu , Kirill V. Golubnichiy

Volatility for financial assets returns can be used to gauge the risk for financial market. We propose a deep stochastic volatility model (DSVM) based on the framework of deep latent variable models. It uses flexible deep learning models to…

Machine Learning · Computer Science 2021-02-26 Xiuqin Xu , Ying Chen

We develop deep learning models to learn the hedge ratio for S&P500 index options directly from options data. We compare different combinations of features and show that a feedforward neural network model with time to maturity,…

Statistical Finance · Quantitative Finance 2021-11-08 Jie Chen , Lingfei Li

This paper introduces an innovative physics-informed deep learning framework for metamodeling of nonlinear structural systems with scarce data. The basic concept is to incorporate physics knowledge (e.g., laws of physics, scientific…

Computational Engineering, Finance, and Science · Computer Science 2020-07-15 Ruiyang Zhang , Yang Liu , Hao Sun

Two models based on convolutional neural networks are trained to predict the two-dimensional velocity-fluctuation fields at different wall-normal locations in a turbulent open channel flow, using the wall-shear-stress components and the…

Fluid Dynamics · Physics 2020-06-23 L. Guastoni , A. Güemes , A. Ianiro , S. Discetti , P. Schlatter , H. Azizpour , R. Vinuesa

This thesis provides an overview of the recent advances in reinforcement learning in pricing and hedging financial instruments, with a primary focus on a detailed explanation of the Q-Learning Black Scholes approach, introduced by Halperin…

Computational Finance · Quantitative Finance 2023-10-09 Zoran Stoiljkovic

Volatility-based trading strategies have attracted a lot of attention in financial markets due to their ability to capture opportunities for profit from market dynamics. In this article, we propose a new volatility-based trading strategy…

Trading and Market Microstructure · Quantitative Finance 2023-08-21 Ivan Letteri

G-expectation, as a sublinear expectation, provides a powerful framework for modeling uncertainty in financial markets. Motivated by the need for robust valuation under model uncertainty, this work develops a unified risk-neutral valuation…

Computational Engineering, Finance, and Science · Computer Science 2026-03-25 Ziting Pei , Xingye Yue , Xiaotao Zheng

A convolutional encoder-decoder-based transformer model is proposed for autoregressively training on spatio-temporal data of turbulent flows. The prediction of future fluid flow fields is based on the previously predicted fluid flow field…

Fluid Dynamics · Physics 2023-03-31 Aakash Patil , Jonathan Viquerat , Elie Hachem

The standard Black-Scholes theory of option pricing is extended to cope with underlying return fluctuations described by general probability distributions. A Langevin process and its related Fokker-Planck equation are devised to model the…

Physics and Society · Physics 2009-11-11 L. Moriconi

It is well known that modeling and forecasting realized covariance matrices of asset returns play a crucial role in the field of finance. The availability of high frequency intraday data enables the modeling of the realized covariance…

Computational Engineering, Finance, and Science · Computer Science 2021-07-23 Yanwen Fang , Philip L. H. Yu , Yaohua Tang

Accurately predicting fluid dynamics and evolution has been a long-standing challenge in physical sciences. Conventional deep learning methods often rely on the nonlinear modeling capabilities of neural networks to establish mappings…

Machine Learning · Computer Science 2025-04-09 Huaguan Chen , Yang Liu , Hao Sun

In today's complex and volatile financial market environment, risk management of multi-asset portfolios faces significant challenges. Traditional risk assessment methods, due to their limited ability to capture complex correlations between…

Risk Management · Quantitative Finance 2025-02-14 Fu Lei , Ge Shi
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