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We develop a novel gradient-based algorithm for optimizing nonsmooth nonconvex functions where nonsmoothness arises from explicit nonsmooth operators in the objective's analytical form. Our key innovation involves encoding active smooth…

Optimization and Control · Mathematics 2025-05-08 Fengqiao Luo

This paper studies simultaneous feature selection and extraction in supervised and unsupervised learning. We propose and investigate selective reduced rank regression for constructing optimal explanatory factors from a parsimonious subset…

Methodology · Statistics 2016-10-27 Yiyuan She

Reinforcement learning (RL) techniques have shown great success in many challenging quantitative trading tasks, such as portfolio management and algorithmic trading. Especially, intraday trading is one of the most profitable and risky tasks…

Trading and Market Microstructure · Quantitative Finance 2022-08-23 Shuo Sun , Wanqi Xue , Rundong Wang , Xu He , Junlei Zhu , Jian Li , Bo An

This paper shows a comprehensive analysis of three algorithms (Time Series, Random Forest (RF) and Deep Reinforcement Learning) into three inventory models (the Lost Sales, Dual-Sourcing and Multi-Echelon Inventory Model). These…

Artificial Intelligence · Computer Science 2025-05-14 Lee Yeung Ping , Patrick Wong , Tan Cheng Han

In the field of quantitative trading, it is common practice to transform raw historical stock data into indicative signals for the market trend. Such signals are called alpha factors. Alphas in formula forms are more interpretable and thus…

Statistical Finance · Quantitative Finance 2023-06-23 Shuo Yu , Hongyan Xue , Xiang Ao , Feiyang Pan , Jia He , Dandan Tu , Qing He

Key-point-based scene understanding is fundamental for autonomous driving applications. At the same time, optical flow plays an important role in many vision tasks. However, due to the implicit bias of equal attention on all points, classic…

Computer Vision and Pattern Recognition · Computer Science 2023-09-25 Zhonghua Yi , Hao Shi , Kailun Yang , Qi Jiang , Yaozu Ye , Ze Wang , Huajian Ni , Kaiwei Wang

This study proposes a behaviorally-informed multi-factor stock selection framework that integrates short-cycle technical alpha signals with deep learning. We design a dual-task multilayer perceptron (MLP) that jointly predicts five-day…

Trading and Market Microstructure · Quantitative Finance 2025-08-21 Yuqi Luan

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

Multimodal data, where different types of data are collected from the same subjects, are fast emerging in a large variety of scientific applications. Factor analysis is commonly used in integrative analysis of multimodal data, and is…

Statistics Theory · Mathematics 2021-03-31 Quefeng Li , Lexin Li

In the realm of financial analytics, leveraging unstructured data, such as earnings conference calls (ECCs), to forecast stock volatility is a critical challenge that has attracted both academics and investors. While previous studies have…

Computational Engineering, Finance, and Science · Computer Science 2024-09-02 Yupeng Cao , Zhi Chen , Qingyun Pei , Nathan Jinseok Lee , K. P. Subbalakshmi , Papa Momar Ndiaye

The order flow in high-frequency financial markets has been of particular research interest in recent years, as it provides insights into trading and order execution strategies and leads to better understanding of the supply-demand…

Methodology · Statistics 2025-02-26 Alex Ziyu Jiang , Abel Rodriguez

In this paper, we consider the nonstationary matrix-valued time series with common stochastic trends. Unlike the traditional factor analysis which flattens matrix observations into vectors, we adopt a matrix factor model in order to fully…

Econometrics · Economics 2025-08-25 Degui Li , Yayi Yan , Qiwei Yao

Information extraction from conversational data is particularly challenging because the task-centric nature of conversation allows for effective communication of implicit information by humans, but is challenging for machines. The…

Computation and Language · Computer Science 2022-06-23 Sopan Khosla , Shikhar Vashishth , Jill Fain Lehman , Carolyn Rose

The analysis of the intraday dynamics of correlations among high-frequency returns is challenging due to the presence of asynchronous trading and market microstructure noise. Both effects may lead to significant data reduction and may…

Trading and Market Microstructure · Quantitative Finance 2019-03-06 Giuseppe Buccheri , Giacomo Bormetti , Fulvio Corsi , Fabrizio Lillo

How much data is needed to optimally schedule distributed energy resources (DERs)? Does the distribution system operator (DSO) have to know load demands at each bus of the feeder to solve an optimal power flow (OPF)? This work exploits…

Systems and Control · Electrical Eng. & Systems 2025-07-21 Vassilis Kekatos , Ridley Annin , Manish K. Singh , Junjie Qin

Most successful information extraction systems operate with access to a large collection of documents. In this work, we explore the task of acquiring and incorporating external evidence to improve extraction accuracy in domains where the…

Computation and Language · Computer Science 2016-09-29 Karthik Narasimhan , Adam Yala , Regina Barzilay

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

The task of stock earnings forecasting has received considerable attention due to the demand investors in real-world scenarios. However, compared with financial institutions, it is not easy for ordinary investors to mine factors and analyze…

Computation and Language · Computer Science 2024-03-06 Xiangyu Li , Xinjie Shen , Yawen Zeng , Xiaofen Xing , Jin Xu

The intricate dynamics of stock markets have led to extensive research on models that are able to effectively explain their inherent complexities. This study leverages the econometrics literature to explore the dynamic factor model as an…

Statistical Finance · Quantitative Finance 2026-01-09 Brian Godwin Lim , Dominic Dayta , Benedict Ryan Tiu , Renzo Roel Tan , Len Patrick Dominic Garces , Kazushi Ikeda

Outside of transfer learning settings, reinforcement learning agents start their learning process from a clean slate. As a result, such agents have to go through a slow process to learn even the most obvious skills required to solve a…

Machine Learning · Computer Science 2025-05-20 Rubens O. Moraes , Quazi Asif Sadmine , Hendrik Baier , Levi H. S. Lelis