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Over the past 20 years, Kenya's demand for petroleum products has proliferated. This is mainly because this particular commodity is used in many sectors of the country's economy. Exchange rates are impacted by constantly shifting prices,…

Machine Learning · Computer Science 2022-11-24 Kiplang'at Weldon , John Ngechu , Ngatho Everlyne , Nancy Njambi , Kinyua Gikunda

Prediction of stock prices plays a significant role in aiding the decision-making of investors. Considering its importance, a growing literature has emerged trying to forecast stock prices with improved accuracy. In this study, we introduce…

Statistical Finance · Quantitative Finance 2023-11-14 Md Sabbirul Haque , Md Shahedul Amin , Jonayet Miah , Duc Minh Cao , Ashiqul Haque Ahmed

Designing robust frameworks for precise prediction of future prices of stocks has always been considered a very challenging research problem. The advocates of the classical efficient market hypothesis affirm that it is impossible to…

Statistical Finance · Quantitative Finance 2021-08-31 Jaydip Sen , Sidra Mehtab

Despite numerous research efforts in applying deep learning to time series forecasting, achieving high accuracy in multi-step predictions for volatile time series like crude oil prices remains a significant challenge. Moreover, most…

Machine Learning · Computer Science 2024-07-17 Mohammed Alruqimi , Luca Di Persio

We propose and experimentally demonstrate an innovative stock index prediction method using a weighted optical reservoir computing system. We construct fundamental market data combined with macroeconomic data and technical indicators to…

Machine Learning · Computer Science 2024-08-02 Fang Wang , Ting Bu , Yuping Huang

Global oil demand is rapidly increasing and is expected to reach 106.3 million barrels per day by 2040. Thus, it is vital for hydrocarbon extraction industries to forecast their production to optimize their operations and avoid losses. Big…

Machine Learning · Computer Science 2023-08-31 Siavash Hosseini , Thangarajah Akilan

The importance of predicting stock market prices cannot be overstated. It is a pivotal task for investors and financial institutions as it enables them to make informed investment decisions, manage risks, and ensure the stability of the…

Statistical Finance · Quantitative Finance 2024-09-02 Aayush Shah , Mann Doshi , Meet Parekh , Nirmit Deliwala , Pramila M. Chawan

Energy is a critical driver of modern economic systems. Accurate energy price forecasting plays an important role in supporting decision-making at various levels, from operational purchasing decisions at individual business organizations to…

Machine Learning · Computer Science 2024-11-07 Alexandru-Victor Andrei , Georg Velev , Filip-Mihai Toma , Daniel Traian Pele , Stefan Lessmann

This paper introduces an information-based model for the pricing of storable commodities such as crude oil and natural gas. The model uses the concept of market information about future supply and demand as a basis for valuation. Physical…

Pricing of Securities · Quantitative Finance 2021-12-01 Dorje C. Brody , Lane P. Hughston , Xun Yang

Physical reservoir computing provides a powerful machine learning paradigm that exploits nonlinear physical dynamics for efficient information processing. By incorporating quantum effects, quantum reservoir computing offers superior…

Quantum Physics · Physics 2026-03-27 Yanjun Hou , Juncheng Hua , Ze Wu , Wei Xia , Yuquan Chen , Xiaopeng Li , Zhaokai Li , Xinhua Peng , Jiangfeng Du

Accurate option pricing is essential for effective trading and risk management in financial markets, yet it remains challenging due to market volatility and the limitations of traditional models like Black-Scholes. In this paper, we…

Computational Engineering, Finance, and Science · Computer Science 2025-06-09 Feliks Bańka , Jarosław A. Chudziak

This paper proposes a novel method for demand forecasting in a pricing context. Here, modeling the causal relationship between price as an input variable to demand is crucial because retailers aim to set prices in a (profit) optimal manner…

Belief networks are a new, potentially important, class of knowledge-based models. ARCO1, currently under development at the Atlantic Richfield Company (ARCO) and the University of Southern California (USC), is the most advanced reported…

Artificial Intelligence · Computer Science 2013-03-26 Bruce Abramson

Financial markets have a vital role in the development of modern society. They allow the deployment of economic resources. Changes in stock prices reflect changes in the market. In this study, we focus on predicting stock prices by deep…

Machine Learning · Computer Science 2019-09-27 Jialin Liu , Fei Chao , Yu-Chen Lin , Chih-Min Lin

A neural net model for forecasting the prices of Venezuelan crude oil is proposed. The inputs of the neural net are selected by reference to a dynamic system model of oil prices by Mashayekhi (1995, 2001) and its performance is evaluated…

Computational Engineering, Finance, and Science · Computer Science 2007-08-29 Sabatino Costanzo , Loren Trigo , Wafaa Dehne , Hender Prato

We introduce a novel approach to options trading strategies using a highly scalable and data-driven machine learning algorithm. In contrast to traditional approaches that often require specifications of underlying market dynamics or…

Portfolio Management · Quantitative Finance 2024-11-22 Wee Ling Tan , Stephen Roberts , Stefan Zohren

In the context of energy transition, industrial plants that heavily rely on electricity face more and more price volatility. To continue operating in these conditions, the directors become continually more willing to increase their…

Optimization and Control · Mathematics 2021-04-20 Thibaut Cuvelier

Reservoir computing has emerged as a powerful framework for time series modelling and forecasting including the prediction of discontinuous transitions. However, the mechanism behind its success is not yet fully understood. This letter…

Chaotic Dynamics · Physics 2025-10-16 Dishant Sisodia , Sarika Jalan

In this article, we analyze two modeling approaches for the pricing of derivative contracts on a commodity index. The first one is a microscopic approach, where the components of the index are modeled individually, and the index price is…

Computational Finance · Quantitative Finance 2024-08-05 Alberto Manzano , Emanuele Nastasi , Andrea Pallavicini , Carlos Vázquez

This paper has been withdrawn by the authors. We present a framework for sequential decision making in problems described by graphical models. The setting is given by dependent discrete random variables with associated costs or revenues. In…

Applications · Statistics 2013-07-01 Gabriele Martinelli , Jo Eidsvik , Ragnar Hauge