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We propose to represent a return model and risk model in a unified manner with deep learning, which is a representative model that can express a nonlinear relationship. Although deep learning performs quite well, it has significant…

Statistical Finance · Quantitative Finance 2022-01-17 Kei Nakagawa , Takumi Uchida , Tomohisa Aoshima

Income and risk coexist, yet investors are often so focused on chasing high returns that they overlook the potential risks that can lead to high losses. Therefore, risk forecasting and risk control is the cornerstone of investment. To…

Applications · Statistics 2023-11-14 Xinyuan Song

On a periodic basis, publicly traded companies report fundamentals, financial data including revenue, earnings, debt, among others. Quantitative finance research has identified several factors, functions of the reported data that…

Statistical Finance · Quantitative Finance 2020-07-16 Lakshay Chauhan , John Alberg , Zachary C. Lipton

Recent work by Locatello et al. (2018) has shown that an inductive bias is required to disentangle factors of interest in Variational Autoencoder (VAE). Motivated by a real-world problem, we propose a setting where such bias is introduced…

Machine Learning · Computer Science 2019-10-15 Junxiang Chen , Kayhan Batmanghelich

The Stochastic Volatility (SV) model and its variants are widely used in the financial sector while recurrent neural network (RNN) models are successfully used in many large-scale industrial applications of Deep Learning. Our article…

Econometrics · Economics 2022-01-25 Trong-Nghia Nguyen , Minh-Ngoc Tran , David Gunawan , R. Kohn

We present two deep generative models based on Variational Autoencoders to improve the accuracy of drug response prediction. Our models, Perturbation Variational Autoencoder and its semi-supervised extension, Drug Response Variational…

Machine Learning · Statistics 2017-07-07 Ladislav Rampasek , Daniel Hidru , Petr Smirnov , Benjamin Haibe-Kains , Anna Goldenberg

Predicting a fast and accurate model for stock price forecasting is been a challenging task and this is an active area of research where it is yet to be found which is the best way to forecast the stock price. Machine learning, deep…

Statistical Finance · Quantitative Finance 2024-02-13 Himanshu Gupta , Aditya Jaiswal

Accurately predicting stock repurchases is crucial for quantitative investment and risk management, yet traditional static models fail to capture the complex temporal dependencies of corporate financial conditions. This paper proposes a…

Statistical Finance · Quantitative Finance 2026-04-14 Xiang Ao , Jingxuan Zhang , Xinyu Zhao

Recently, audio-visual speech enhancement has been tackled in the unsupervised settings based on variational auto-encoders (VAEs), where during training only clean data is used to train a generative model for speech, which at test time is…

Audio and Speech Processing · Electrical Eng. & Systems 2021-02-09 Mostafa Sadeghi , Xavier Alameda-Pineda

Variational autoencoders (VAE) are a powerful and widely-used class of models to learn complex data distributions in an unsupervised fashion. One important limitation of VAEs is the prior assumption that latent sample representations are…

Machine Learning · Computer Science 2018-11-27 Francesco Paolo Casale , Adrian V Dalca , Luca Saglietti , Jennifer Listgarten , Nicolo Fusi

We propose a fast and flexible method to scale multivariate return volatility predictions up to high-dimensions using a dynamic risk factor model. Our approach increases parsimony via time-varying sparsity on factor loadings and is able to…

Statistical Finance · Quantitative Finance 2021-11-15 Bruno P. C. Levy , Hedibert F. Lopes

The recurrent neural networks (RNN) with richly distributed internal states and flexible non-linear transition functions, have overtaken the dynamic Bayesian networks such as the hidden Markov models (HMMs) in the task of modeling highly…

Machine Learning · Computer Science 2021-08-11 Jin Huang , Ming Xiao

Volatility for financial assets returns can be used to gauge the risk for financial market. We propose a deep stochastic volatility model (DSVM) based on the framework of deep latent variable models. It uses flexible deep learning models to…

Machine Learning · Computer Science 2021-02-26 Xiuqin Xu , Ying Chen

Variational autoencoder is a powerful deep generative model with variational inference. The practice of modeling latent variables in the VAE's original formulation as normal distributions with a diagonal covariance matrix limits the…

Machine Learning · Computer Science 2019-03-11 Sarin Chandy , Amin Rasekh

The Variational Autoencoder (VAE) is a powerful framework for learning probabilistic latent variable generative models. However, typical assumptions on the approximate posterior distribution of the encoder and/or the prior, seriously…

Machine Learning · Computer Science 2020-07-13 Ifigeneia Apostolopoulou , Elan Rosenfeld , Artur Dubrawski

Stock return predictability is an important research theme as it reflects our economic and social organization, and significant efforts are made to explain the dynamism therein. Statistics of strong explanative power, called "factor" have…

Statistical Finance · Quantitative Finance 2020-11-26 Kei Nakagawa , Masaya Abe , Junpei Komiyama

The variational autoencoder (VAE; Kingma, Welling (2014)) is a recently proposed generative model pairing a top-down generative network with a bottom-up recognition network which approximates posterior inference. It typically makes strong…

Machine Learning · Computer Science 2016-11-08 Yuri Burda , Roger Grosse , Ruslan Salakhutdinov

Disentangled sequential autoencoders (DSAEs) represent a class of probabilistic graphical models that describes an observed sequence with dynamic latent variables and a static latent variable. The former encode information at a frame rate…

Sound · Computer Science 2022-06-16 Yin-Jyun Luo , Sebastian Ewert , Simon Dixon

Wide accessibility of imaging and profile sensors in modern industrial systems created an abundance of high-dimensional sensing variables. This led to a a growing interest in the research of high-dimensional process monitoring. However,…

Machine Learning · Computer Science 2022-08-15 Nurettin Sergin , Hao Yan

Recently, a generative variational autoencoder (VAE) has been proposed for speech enhancement to model speech statistics. However, this approach only uses clean speech in the training phase, making the estimation particularly sensitive to…

Audio and Speech Processing · Electrical Eng. & Systems 2021-05-18 Huajian Fang , Guillaume Carbajal , Stefan Wermter , Timo Gerkmann