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Mean-reverting assets are one of the holy grails of financial markets: if such assets existed, they would provide trivially profitable investment strategies for any investor able to trade them, thanks to the knowledge that such assets…

Statistical Finance · Quantitative Finance 2015-09-22 Marco Cuturi , Alexandre d'Aspremont

Fully pairing all elements of a set while attempting to maximize the total benefit is a combinatorically difficult problem. Such pairing problems naturally appear in various situations in science, technology, economics, and other fields. In…

Data Structures and Algorithms · Computer Science 2023-01-25 Naoki Fujita , André Röhm , Takatomo Mihana , Ryoichi Horisaki , Aohan Li , Mikio Hasegawa , Makoto Naruse

We investigate an application of network centrality measures to portfolio optimization, by generalizing the method in [Pozzi, Di Matteo and Aste, \emph{Spread of risks across financial markets: better to invest in the peripheries},…

Portfolio Management · Quantitative Finance 2024-04-02 Bahar Arslan , Vanni Noferini , Spyridon Vrontos

We introduce a technique that is capable to filter out information from complex systems, by mapping them to networks, and extracting a subgraph with the strongest links. This idea is based on the Minimum Spanning Tree, and it can be applied…

Physics and Society · Physics 2009-05-17 Antonios Garas , Panos Argyrakis

The main contribution of the paper is to employ the financial market network as a useful tool to improve the portfolio selection process, where nodes indicate securities and edges capture the dependence structure of the system. Three…

Portfolio Management · Quantitative Finance 2019-01-15 Gian Paolo Clemente , Rosanna Grassi , Asmerilda Hitaj

We propose a novel portfolio trading system, which contains a feature preprocessing module and a trading module. The feature preprocessing module consists of various data processing operations, while in the trading part, we integrate the…

Trading and Market Microstructure · Quantitative Finance 2021-11-02 Lin Li

The potential of machine learning to automate and control nonlinear, complex systems is well established. These same techniques have always presented potential for use in the investment arena, specifically for the managing of equity…

Portfolio Management · Quantitative Finance 2011-10-18 Evan Hurwitz , Tshilidzi Marwala

We present an approach, based on deep neural networks, that allows identifying robust statistical arbitrage strategies in financial markets. Robust statistical arbitrage strategies refer to trading strategies that enable profitable trading…

Computational Finance · Quantitative Finance 2024-02-27 Ariel Neufeld , Julian Sester , Daiying Yin

Recent works leveraging Graph Neural Networks to approach graph matching tasks have shown promising results. Recent progress in learning discrete distributions poses new opportunities for learning graph matching models. In this work, we…

Machine Learning · Computer Science 2021-09-14 Linfeng Liu , Michael C. Hughes , Soha Hassoun , Li-Ping Liu

In observational studies of treatment effects, matched samples are created so treated and control groups are similar in terms of observable covariates. Traditionally such matched samples consist of matched pairs. If a pair match fails to…

Methodology · Statistics 2014-10-22 Luke Keele , Sam Pimentel , Frank Yoon

This version is ***superseded*** by a full version that can be found at http://www.itu.dk/people/pagh/papers/mining-jour.pdf, which contains stronger theoretical results and fixes a mistake in the reporting of experiments. Abstract:…

Data Structures and Algorithms · Computer Science 2010-02-17 Andrea Campagna , Rasmus Pagh

Peer-to-peer (P2P) trading is seen as a viable solution to handle the growing number of distributed energy resources in distribution networks. However, when dealing with large-scale consumers, there are several challenges that must be…

Systems and Control · Electrical Eng. & Systems 2024-10-29 Cheng Feng , Kedi Zheng , Lanqing Shan , Hani Alers , Qixin Chen , Lampros Stergioulas , Hongye Guo

Recommender systems are often biased toward popular items. In other words, few items are frequently recommended while the majority of items do not get proportionate attention. That leads to low coverage of items in recommendation lists…

Information Retrieval · Computer Science 2020-05-05 Masoud Mansoury , Himan Abdollahpouri , Mykola Pechenizkiy , Bamshad Mobasher , Robin Burke

Inventory matching is a standard mechanism/auction for trading financial stocks by which buyers and sellers can be paired. In the financial world, banks often undertake the task of finding such matches between their clients. The related…

Cryptography and Security · Computer Science 2023-10-17 Antigoni Polychroniadou , Gilad Asharov , Benjamin Diamond , Tucker Balch , Hans Buehler , Richard Hua , Suwen Gu , Greg Gimler , Manuela Veloso

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 this study, we explore the synergy of deep learning and financial market applications, focusing on pair trading. This market-neutral strategy is integral to quantitative finance and is apt for advanced deep-learning techniques. A pivotal…

Machine Learning · Computer Science 2024-02-07 Junwei Su , Shan Wu , Jinhui Li

We propose the use of non-parametric, graph-based tests to assess the distributional balance of covariates in observational studies with multi-valued treatments. Our tests utilize graph structures ranging from Hamiltonian paths that connect…

Methodology · Statistics 2022-08-11 Eric A. Dunipace

A constant rebalanced portfolio is an asset allocation algorithm which keeps the same distribution of wealth among a set of assets along a period of time. Recently, there has been work on on-line portfolio selection algorithms which are…

Portfolio Management · Quantitative Finance 2013-02-01 Yoram Singer

How to price and hedge claims on nontraded assets are becoming increasingly important matters in option pricing theory today. The most common practice to deal with these issues is to use another similar or "closely related" asset or index…

Pricing of Securities · Quantitative Finance 2014-01-28 Marcelo J. Villena , Axel A. Araneda

Investors try to predict returns of financial assets to make successful investment. Many quantitative analysts have used machine learning-based methods to find unknown profitable market rules from large amounts of market data. However,…

Trading and Market Microstructure · Quantitative Finance 2020-12-21 Katsuya Ito , Kentaro Minami , Kentaro Imajo , Kei Nakagawa