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We study the dynamic portfolio selection of an investor who uses deep learning methods to forecast stock market excess returns. In a two-asset allocation problem, deep neural networks -- both feedforward and long short-term memory (LSTM)…

General Finance · Quantitative Finance 2026-02-16 Mykola Babiak , Jozef Barunik

It is very vital for suppliers and distributors to predict the deregulated electricity prices for creating their bidding strategies in the competitive market area. Pre requirement of succeeding in this field, accurate and suitable…

Statistical Finance · Quantitative Finance 2016-10-27 T. O. Benli

This paper demonstrates that deep learning models trained on raw OHLCV (open-high-low-close-volume) data can achieve comparable performance to traditional machine learning (ML) models using technical indicators for stock price prediction in…

Computational Engineering, Finance, and Science · Computer Science 2025-04-07 Sungwoo Kang

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

In order to make good investment decisions, it is vitally important for an investor to know how to make good analysis of financial time series. Within this context, studies on the forecast of the values and trends of stock prices have…

Statistical Finance · Quantitative Finance 2021-08-24 Gabriel de Oliveira Guedes Nogueira , Marcel Otoboni de Lima

Training a practical and effective model for stock selection has been a greatly concerned problem in the field of artificial intelligence. Even though some of the models from previous works have achieved good performance in the U.S. market…

Computational Finance · Quantitative Finance 2019-11-07 Junming Yang , Yaoqi Li , Xuanyu Chen , Jiahang Cao , Kangkang Jiang

Stock Movement Prediction (SMP) aims at predicting listed companies' stock future price trend, which is a challenging task due to the volatile nature of financial markets. Recent financial studies show that the momentum spillover effect…

Statistical Finance · Quantitative Finance 2022-01-25 Yu Zhao , Huaming Du , Ying Liu , Shaopeng Wei , Xingyan Chen , Fuzhen Zhuang , Qing Li , Ji Liu , Gang Kou

Stock market prediction is still a challenging problem because there are many factors effect to the stock market price such as company news and performance, industry performance, investor sentiment, social media sentiment and economic…

General Finance · Quantitative Finance 2019-04-01 Rosdyana Mangir Irawan Kusuma , Trang-Thi Ho , Wei-Chun Kao , Yu-Yen Ou , Kai-Lung Hua

This paper explores using a deep learning Long Short-Term Memory (LSTM) model for accurate stock price prediction and its implications for portfolio design. Despite the efficient market hypothesis suggesting that predicting stock prices is…

Computational Finance · Quantitative Finance 2025-05-16 Jaydip Sen , Hetvi Waghela , Sneha Rakshit

In recent years, more and more investors use technical analysis methods in their own trading. Evaluating the effectiveness of technical analysis has become more feasible due to increasing computing capability and blooming public data, which…

Portfolio Management · Quantitative Finance 2022-06-27 Pat Tong Chio

Price movements of stock market are not totally random. In fact, what drives the financial market and what pattern financial time series follows have long been the interest that attracts economists, mathematicians and most recently computer…

Statistical Finance · Quantitative Finance 2013-11-20 G. Kavitha , A. Udhayakumar , D. Nagarajan

This paper compares Kolmogorov-Arnold Networks (KAN) and Long Short-Term Memory networks (LSTM) for forecasting non-deterministic stock price data, evaluating predictive accuracy versus interpretability trade-offs using Root Mean Square…

Machine Learning · Computer Science 2025-11-25 Tabish Ali Rather , S M Mahmudul Hasan Joy , Nadezda Sukhorukova , Federico Frascoli

The stock market is volatile and complicated, especially in 2020. Because of a series of global and regional "black swans," such as the COVID-19 pandemic, the U.S. stock market triggered the circuit breaker three times within one week of…

Statistical Finance · Quantitative Finance 2021-10-01 Jinlong Ruan , Wei Wu , Jiebo Luo

The market efficiency hypothesis has been proposed to explain the behavior of time series of stock markets. The Black-Scholes model (B-S) for example, is based on the assumption that markets are efficient. As a consequence, it is…

Statistical Finance · Quantitative Finance 2019-03-20 Carlos Arturo Soto Campos , Leopoldo Sánchez Cantú , Zeus Hernández Veleros

Accurate stock price prediction is crucial for investors and financial institutions, yet the complexity of the stock market makes it highly challenging. This study aims to construct an effective model to enhance the prediction ability of…

Computational Engineering, Finance, and Science · Computer Science 2025-01-16 Zi-xi Hu , Bao Shen , Yiwen Hu , Chen Zhao

Investment portfolios, central to finance, balance potential returns and risks. This paper introduces a hybrid approach combining Markowitz's portfolio theory with reinforcement learning, utilizing knowledge distillation for training…

Computational Finance · Quantitative Finance 2024-05-10 Gang Hu , Ming Gu

This paper proposes a novel approach to hedging portfolios of risky assets when financial markets are affected by financial turmoils. We introduce a completely novel approach to diversification activity not on the level of single assets but…

Portfolio Management · Quantitative Finance 2023-09-28 Jakub Michańków , Paweł Sakowski , Robert Ślepaczuk

Recent deep reinforcement learning (DRL) methods in finance show promising outcomes. However, there is limited research examining the behavior of these DRL algorithms. This paper aims to investigate their tendencies towards holding or…

Trading and Market Microstructure · Quantitative Finance 2024-07-16 Alireza Mohammadshafie , Akram Mirzaeinia , Haseebullah Jumakhan , Amir Mirzaeinia

Investors and stock market analysts face major challenges in predicting stock returns and making wise investment decisions. The predictability of equity stock returns can boost investor confidence, but it remains a difficult task. To…

Statistical Finance · Quantitative Finance 2025-07-04 Adebola K. Ojo , Ifechukwude Jude Okafor

Stock market investment have been an ideal form of investment for many years. Investing capitals smartly in stock market yields high profit returns. But there are many companies available in a market. Currently there are more than $345$…

Statistical Finance · Quantitative Finance 2023-01-12 Tashreef Muhammad , Tahsin Aziz , Mohammad Shafiul Alam