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This paper uses simulation-based portfolio optimization to mitigate the left tail risk of the portfolio. The contribution is twofold. (i) We propose the Markov regime-switching GARCH model with multivariate normal tempered stable innovation…

Risk Management · Quantitative Finance 2023-02-03 Cheng Peng , Young Shin Kim , Stefan Mittnik

We propose an adaptive algorithm for tracking of historical volatility. The algorithm is built under the assumption that the historical volatility function belongs to the Stone-Ibragimov-Khasminskii class of $k$ times differentiable…

Probability · Mathematics 2007-06-13 L. Goldentayer , F. Klebaner , R. Liptser

Recurrent neural networks (RNNs) are nonlinear dynamical models commonly used in the machine learning and dynamical systems literature to represent complex dynamical or sequential relationships between variables. More recently, as deep…

Methodology · Statistics 2018-02-08 Patrick L. McDermott , Christopher K. Wikle

Uncertainty quantification is essential for deploying reliable Graph Neural Networks (GNNs), where existing approaches primarily rely on Bayesian inference or ensembles. In this paper, we introduce the first credal graph neural networks…

Machine Learning · Computer Science 2025-12-03 Matteo Tolloso , Davide Bacciu

Networks serve as a tool used to examine the large-scale connectivity patterns in complex systems. Modelling their generative mechanism nonparametrically is often based on step-functions, such as the stochastic block models. These models…

Methodology · Statistics 2024-01-11 Arthur Verdeyme , Sofia C. Olhede

This paper proposes a novel hybrid model, termed GARCH-FIS, for recursive rolling multi-step forecasting of financial time series. It integrates a Fuzzy Inference System (FIS) with a Generalized Autoregressive Conditional Heteroskedasticity…

Machine Learning · Computer Science 2026-03-17 Wen-Jing Li , Da-Qing Zhang

Recurrent neural networks (RNNs) are more suitable for learning non-linear dependencies in dynamical systems from observed time series data. In practice all the external variables driving such systems are not known a priori, especially in…

Machine Learning · Computer Science 2020-06-02 Mhlasakululeka Mvubu , Emmanuel Kabuga , Christian Plitz , Bubacarr Bah , Ronnie Becker , Hans Georg Zimmermann

This paper proposes a data-driven approach, by means of an Artificial Neural Network (ANN), to value financial options and to calculate implied volatilities with the aim of accelerating the corresponding numerical methods. With ANNs being…

Computational Finance · Quantitative Finance 2024-12-20 Shuaiqiang Liu , Cornelis W. Oosterlee , Sander M. Bohte

Graph Neural Networks (GNNs), particularly Graph Convolutional Neural Networks (GCNNs), have emerged as pivotal instruments in machine learning and signal processing for processing graph-structured data. This paper proposes an analysis…

Machine Learning · Statistics 2024-11-04 Xinjue Wang , Esa Ollila , Sergiy A. Vorobyov

Stock return prediction is fundamental to financial decision-making, yet traditional time series models fail to capture the complex interdependencies between companies in modern markets. We propose the Full-State Graph Convolutional LSTM…

Statistical Finance · Quantitative Finance 2025-12-09 Chang Liu

Traffic flow forecasting is essential for managing congestion, improving safety, and optimizing various transportation systems. However, it remains a prevailing challenge due to the stochastic nature of urban traffic and environmental…

Machine Learning · Computer Science 2025-09-16 Mayur Patil , Qadeer Ahmed , Shawn Midlam-Mohler

The accurate prediction of time-changing variances is an important task in the modeling of financial data. Standard econometric models are often limited as they assume rigid functional relationships for the variances. Moreover, function…

Methodology · Statistics 2014-02-14 Yue Wu , Jose Miguel Hernandez Lobato , Zoubin Ghahramani

Graph Neural Networks (GNNs) have become the de facto standard for learning on relational data. While traditional GNNs' message passing is well suited for vector-valued node features, there are cases in which node features are better…

Machine Learning · Computer Science 2026-05-21 André Ribeiro , Ana Luiza Tenório , Tiago da Silva , Diego Mesquita

Graph Neural Networks (GNNs) have shown remarkable performance in the healthcare domain. However, what remained challenging is quantifying the predictive uncertainty of GNNs, which is an important aspect of trustworthiness in clinical…

Machine Learning · Computer Science 2025-08-28 Hirad Daneshvar , Reza Samavi

Purpose: This study introduces a novel framework for identifying and exploiting predictive lead-lag relationships in financial markets. We propose an integrated approach that combines advanced statistical methodologies with machine learning…

Statistical Finance · Quantitative Finance 2025-07-15 Ivan Letteri

In the rapidly evolving landscape of digital assets, the imperative for robust data privacy and compliance with regulatory frameworks has intensified. This paper investigates the critical role of Graph Neural Networks (GNNs) in the…

Machine Learning · Computer Science 2024-09-30 Zara Lisbon

The realized GARCH framework is extended to incorporate the two-sided Weibull distribution, for the purpose of volatility and tail risk forecasting in a financial time series. Further, the realized range, as a competitor for realized…

Risk Management · Quantitative Finance 2017-07-13 Chao Wang , Qian Chen , Richard Gerlach

We employ single-qubit quantum circuit learning (QCL) to model the dynamics of volatility time series. To assess its effectiveness, we generate synthetic data using the Rational GARCH model, which is specifically designed to capture…

Computational Finance · Quantitative Finance 2026-04-29 Tetsuya Takaishi

Reinforcement learning is well known for its ability to model sequential tasks and learn latent data patterns adaptively. Deep learning models have been widely explored and adopted in regression and classification tasks. However, deep…

Machine Learning · Computer Science 2025-06-17 Thanveer Shaik , Xiaohui Tao , Haoran Xie , Lin Li , Jianming Yong , Yuefeng Li

Nested logit (NL) has been commonly used for discrete choice analysis, including a wide range of applications such as travel mode choice, automobile ownership, or location decisions. However, the classical NL models are restricted by their…

Machine Learning · Statistics 2025-09-10 Yuqi Zhou , Zhanhong Cheng , Lingqian Hu , Yuheng Bu , Shenhao Wang