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The improvement of computers' capacities, advancements in algorithmic techniques, and the significant increase of available data have enabled the recent developments of Artificial Intelligence (AI) technology. One of its branches, called…

Machine Learning · Computer Science 2021-07-13 Racine Ly

In modern business processes, the amount of data collected has increased substantially in recent years. Because this data can potentially yield valuable insights, automated knowledge extraction based on process mining has been proposed,…

Machine Learning · Computer Science 2022-12-02 Riza Velioglu , Jan Philip Göpfert , André Artelt , Barbara Hammer

Recent advances in large language models (LLMs) have unlocked novel opportunities for machine learning applications in the financial domain. These models have demonstrated remarkable capabilities in understanding context, processing vast…

General Finance · Quantitative Finance 2024-06-19 Yuqi Nie , Yaxuan Kong , Xiaowen Dong , John M. Mulvey , H. Vincent Poor , Qingsong Wen , Stefan Zohren

Modern evolvements of the technologies have been leading to a profound influence on the financial market. The introduction of constituents like Exchange-Traded Funds, and the wide-use of advanced technologies such as algorithmic trading,…

Statistical Finance · Quantitative Finance 2021-08-20 Liao Zhu

Scientific progress is tightly coupled to the emergence of new research tools. Today, machine learning (ML)-especially deep learning (DL)-has become a transformative instrument for quantum science and technology. Owing to the intrinsic…

Quantum Physics · Physics 2025-08-15 Timothy Heightman , Marcin Płodzień

It involves the completely novel ways of integrating ML algorithms with traditional statistical modelling that has changed the way we analyze data, do predictive analytics or make decisions in the fields of the data. In this paper, we study…

Decision analytics commonly focuses on the text mining of financial news sources in order to provide managerial decision support and to predict stock market movements. Existing predictive frameworks almost exclusively apply traditional…

Machine Learning · Statistics 2018-07-05 Stefan Feuerriegel , Ralph Fehrer

Big data, both in its structured and unstructured formats, have brought in unforeseen challenges in economics and business. How to organize, classify, and then analyze such data to obtain meaningful insights are the ever-going research…

General Economics · Economics 2025-02-04 Viet Trinh

In the practical business of asset management by investment trusts and the like, the general practice is to manage over the medium to long term owing to the burden of operations and increase in transaction costs with the increase in…

Computational Finance · Quantitative Finance 2023-01-31 Kazuki Amagai , Tomoya Suzuki

With the recent rise of Machine Learning as a candidate to partially replace classic Financial Mathematics methodologies, we investigate the performances of both in solving the problem of dynamic portfolio optimization in continuous-time,…

Portfolio Management · Quantitative Finance 2019-10-29 Babak Mahdavi-Damghani , Konul Mustafayeva , Stephen Roberts , Cristin Buescu

In the past decade, Artificial Intelligence (AI) has become a part of our daily lives due to major advances in Machine Learning (ML) techniques. In spite of an explosive growth in the raw AI technology and in consumer facing applications on…

Software Engineering · Computer Science 2020-06-18 P. Santhanam

This paper contributes to the literature on parametric demand estimation by using deep learning to model consumer preferences. Traditional econometric methods often struggle with limited within-product price variation, a challenge addressed…

General Economics · Economics 2024-12-16 Kirill Safonov

Financial markets are influenced by human behavior that deviates from rationality due to cognitive biases. Traditional reinforcement learning (RL) models for financial decision-making assume rational agents, potentially overlooking the…

Machine Learning · Computer Science 2026-01-14 Liu He

This study enhances a Deep Q-Network (DQN) trading model by incorporating advanced techniques like Prioritized Experience Replay, Regularized Q-Learning, Noisy Networks, Dueling, and Double DQN. Extensive tests on assets like BTC/USD and…

Computational Finance · Quantitative Finance 2023-11-21 Gang Hu

Deep-learning techniques have been successfully used for time-series forecasting and have often shown superior performance on many standard benchmark datasets as compared to traditional techniques. Here we present a comprehensive and…

Machine Learning · Computer Science 2021-12-08 Vedant Shah , Gautam Shroff

This paper explores the integration of Explainable Automated Machine Learning (AutoML) in the realm of financial engineering, specifically focusing on its application in credit decision-making. The rapid evolution of Artificial Intelligence…

Risk Management · Quantitative Finance 2024-02-07 Marc Schmitt

Machine learning can provide deep insights into data, allowing machines to make high-quality predictions and having been widely used in real-world applications, such as text mining, visual classification, and recommender systems. However,…

Machine Learning · Computer Science 2020-08-11 Meng Wang , Weijie Fu , Xiangnan He , Shijie Hao , Xindong Wu

Techniques from deep learning play a more and more important role for the important task of calibration of financial models. The pioneering paper by Hernandez [Risk, 2017] was a catalyst for resurfacing interest in research in this area. In…

Mathematical Finance · Quantitative Finance 2019-08-26 Christian Bayer , Blanka Horvath , Aitor Muguruza , Benjamin Stemper , Mehdi Tomas

We introduce a novel approach to options trading strategies using a highly scalable and data-driven machine learning algorithm. In contrast to traditional approaches that often require specifications of underlying market dynamics or…

Portfolio Management · Quantitative Finance 2024-11-22 Wee Ling Tan , Stephen Roberts , Stefan Zohren

In the overview, a generic mathematical object (mapping) is introduced, and its relation to model physics parameterization is explained. Machine learning (ML) tools that can be used to emulate and/or approximate mappings are introduced.…

Atmospheric and Oceanic Physics · Physics 2022-06-22 Vladimir Krasnopolsky , Aleksei A. Belochitski
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