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Within the Private Equity (PE) market, the event of a private company undertaking an Initial Public Offering (IPO) is usually a very high-return one for the investors in the company. For this reason, an effective predictive model for the…

Machine Learning · Computer Science 2019-11-26 Giuseppe C. Calafiore , Marisa H. Morales , Vittorio Tiozzo , Giulia Fracastoro , Serge Marquie

We move beyond "Is Machine Learning Useful for Macroeconomic Forecasting?" by adding the "how". The current forecasting literature has focused on matching specific variables and horizons with a particularly successful algorithm. In…

Convolutional neural network is a machine-learning model widely applied in various prediction tasks, such as computer vision and medical image analysis. Their great predictive power requires extensive computation, which encourages model…

Cryptography and Security · Computer Science 2020-06-30 Minghui Li , Sherman S. M. Chow , Shengshan Hu , Yuejing Yan , Chao Shen , Qian Wang

In this paper, we compare various approaches to stock price prediction using neural networks. We analyze the performance fully connected, convolutional, and recurrent architectures in predicting the next day value of S&P 500 index based on…

Statistical Finance · Quantitative Finance 2021-03-29 Firuz Kamalov , Linda Smail , Ikhlaas Gurrib

Increasingly high-stakes decisions are made using neural networks in order to make predictions. Specifically, meteorologists and hedge funds apply these techniques to time series data. When it comes to prediction, there are certain…

Machine Learning · Computer Science 2022-11-14 Levente Foldesi , Matias Valdenegro-Toro

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

One of the key components in analyzing the risk of a company is understanding a company's supply chain. Supply chains are constantly disrupted, whether by tariffs, pandemics, severe weather, etc. In this paper, we tackle the problem of…

Machine Learning · Computer Science 2021-11-04 Achintya Gopal , Chunho Chang

In the global economy, credit companies play a central role in economic development, through their activity as money lenders. This important task comes with some drawbacks, mainly the risk of the debtors not being able to repay the provided…

Machine Learning · Computer Science 2021-01-01 Giorgio Visani , Federico Chesani , Enrico Bagli , Davide Capuzzo , Alessandro Poluzzi

This project demonstrated a methodology to estimating cooperate credibility with a Natural Language Processing approach. As cooperate transparency impacts both the credibility and possible future earnings of the firm, it is an important…

Computation and Language · Computer Science 2018-11-28 Mohan Zhang , Zhichao Luo , Hai Lu

Encouraged by the success of deep learning in a variety of domains, we investigate the suitability and effectiveness of Recurrent Neural Networks (RNNs) in a domain where deep learning has not yet been used; namely detecting confusion from…

Computer Vision and Pattern Recognition · Computer Science 2019-06-27 Shane D. Sims , Vanessa Putnam , Cristina Conati

Trend change prediction in complex systems with a large number of noisy time series is a problem with many applications for real-world phenomena, with stock markets as a notoriously difficult to predict example of such systems. We approach…

Computational Finance · Quantitative Finance 2018-11-30 Ben Moews , J. Michael Herrmann , Gbenga Ibikunle

This work presents a Convolutional Neural Network (CNN) for the prediction of next-day stock fluctuations using company-specific news headlines. Experiments to evaluate model performance using various configurations of word-embeddings and…

Computation and Language · Computer Science 2020-06-23 Jonathan Readshaw , Stefano Giani

Corporate insolvency can have a devastating effect on the economy. With an increasing number of companies making expansion overseas to capitalize on foreign resources, a multinational corporate bankruptcy can disrupt the world's financial…

Statistical Finance · Quantitative Finance 2018-02-16 Jacky C. K. Chow

Time series prediction aims to predict future values to help stakeholders make proper strategic decisions. This problem is relevant in all industries and areas, ranging from financial data to demand to forecast. However, it remains…

Applications · Statistics 2020-09-09 Aleksandr Pletnev , Rodrigo Rivera-Castro , Evgeny Burnaev

The problem we address is the following: how can a user employ a predictive model that is held by a third party, without compromising private information. For example, a hospital may wish to use a cloud service to predict the readmission…

Machine Learning · Computer Science 2014-12-25 Pengtao Xie , Misha Bilenko , Tom Finley , Ran Gilad-Bachrach , Kristin Lauter , Michael Naehrig

Artificial intelligence is creating one of the biggest revolution across technology driven application fields. For the finance sector, it offers many opportunities for significant market innovation and yet broad adoption of AI systems…

Risk Management · Quantitative Finance 2022-12-07 Marc Wildi , Branka Hadji Misheva

Financial models do not merely analyse markets, but actively shape them. This effect, known as performativity, describes how financial theories and the subsequent actions based on them influence market processes, by creating self-fulfilling…

Trading and Market Microstructure · Quantitative Finance 2026-02-19 Charalampos Kleitsikas , Stefanos Leonardos , Carmine Ventre

Complex nonlinear models such as deep neural network (DNNs) have become an important tool for image classification, speech recognition, natural language processing, and many other fields of application. These models however lack…

This paper examines two different yet related questions related to explainable AI (XAI) practices. Machine learning (ML) is increasingly important in financial services, such as pre-approval, credit underwriting, investments, and various…

Machine Learning · Computer Science 2022-09-21 Swati Tyagi

In this study, we propose a novel approach of nowcasting and forecasting the macroeconomic status of a country using deep learning techniques. We focus particularly on the US economy but the methodology can be applied also to other…

Computational Finance · Quantitative Finance 2023-01-25 Anastasios Petropoulos , Vassilis Siakoulis , Konstantinos P. Panousis , Loukas Papadoulas , Sotirios Chatzis