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Finance is one of the promising field for industrial application of quantum computing. In particular, quantum algorithms for calculation of risk measures such as the value at risk and the conditional value at risk of a credit portfolio have…

Quantum Physics · Physics 2022-01-28 Koichi Miyamoto

For the development of successful share trading strategies, forecasting the course of action of the stock market index is important. Effective prediction of closing stock prices could guarantee investors attractive benefits. Machine…

Statistical Finance · Quantitative Finance 2021-04-16 Nazish Ashfaq , Zubair Nawaz , Muhammad Ilyas

$k$-means algorithm is one of the most classical clustering methods, which has been widely and successfully used in signal processing. However, due to the thin-tailed property of the Gaussian distribution, $k$-means algorithm suffers from…

Machine Learning · Computer Science 2021-02-02 Yiming Li , Yang Zhang , Qingtao Tang , Weipeng Huang , Yong Jiang , Shu-Tao Xia

This paper presents price prediction models using Machine Learning algorithms augmented with Superforecasters predictions, aimed at enhancing investment decisions. Five Machine Learning models are built, including Bidirectional LSTM, ARIMA,…

Trading and Market Microstructure · Quantitative Finance 2024-07-03 Anishka Chauhan , Pratham Mayur , Yeshwanth Sai Gokarakonda , Pooriya Jamie , Naman Mehrotra

In a real-world data set there is always the possibility, rather high in our opinion, that different features may have different degrees of relevance. Most machine learning algorithms deal with this fact by either selecting or deselecting…

Machine Learning · Computer Science 2016-01-15 Renato Cordeiro de Amorim

In this study, we utilize the Kalman-Filter analysis to assess market efficiency in major stock markets. The Kalman-Filter operates in two stages, assuming that the data contains a consistent trendline representing the true market value…

Computational Finance · Quantitative Finance 2024-04-26 Beier Liu , Haiyun Zhu

With the continuous development of artificial intelligence technology, using machine learning technology to predict market trends may no longer be out of reach. In recent years, artificial intelligence has become a research hotspot in the…

Portfolio Management · Quantitative Finance 2024-04-30 Shuochen Bi , Wenqing Bao , Jue Xiao , Jiangshan Wang , Tingting Deng

The K-means algorithm is arguably the most popular data clustering method, commonly applied to processed datasets in some "feature spaces", as is in spectral clustering. Highly sensitive to initializations, however, K-means encounters a…

Machine Learning · Computer Science 2019-06-04 Feiyu Chen , Yuchen Yang , Liwei Xu , Taiping Zhang , Yin Zhang

Rapidly advancing artificial intelligence (AI) systems introduce novel, uncertain, and potentially catastrophic risks. Managing these risks requires a mature risk-management infrastructure whose cornerstone is rigorous risk modeling. We…

Financial market prediction and optimal trading strategy development remain challenging due to market complexity and volatility. Our research in quantum finance and reinforcement learning for decision-making demonstrates the approach of…

Quantum Physics · Physics 2025-01-24 Siddhant Dutta , Nouhaila Innan , Alberto Marchisio , Sadok Ben Yahia , Muhammad Shafique

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

Big data mining is well known to be an important task for data science, because it can provide useful observations and new knowledge hidden in given large datasets. Proximity-based data analysis is particularly utilized in many real-life…

Databases · Computer Science 2022-11-29 Daichi Amagata , Yusuke Arai , Sumio Fujita , Takahiro Hara

Derivative hedging and pricing are important and continuously studied topics in financial markets. Recently, deep hedging has been proposed as a promising approach that uses deep learning to approximate the optimal hedging strategy and can…

Computational Finance · Quantitative Finance 2024-04-16 Masanori Hirano

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

Enterprise financial risk analysis aims at predicting the future financial risk of enterprises. Due to its wide and significant application, enterprise financial risk analysis has always been the core research topic in the fields of Finance…

Risk Management · Quantitative Finance 2026-03-26 Huaming Du , Cancan Feng , Yuqian Lei , Chenyang Zhang , Guisong Liu , Gang Kou , Carl Yang , Yu Zhao

The analysis of continously larger datasets is a task of major importance in a wide variety of scientific fields. In this sense, cluster analysis algorithms are a key element of exploratory data analysis, due to their easiness in the…

Machine Learning · Statistics 2018-01-10 Marco Capó , Aritz Pérez , Jose A. Lozano

The rapid development of information technology, especially the Internet, has facilitated users with a quick and easy way to seek information. With these convenience offered by internet services, many individuals who initially invested in…

Machine Learning · Computer Science 2024-03-07 Novan Fauzi Al Giffary , Feri Sulianta

In this paper, making use of recent statistical physics techniques and models, we address the specific role of randomness in financial markets, both at the micro and the macro level. In particular, we review some recent results obtained…

General Finance · Quantitative Finance 2014-10-31 Alessio Emanuele Biondo , Alessandro Pluchino , Andrea Rapisarda

$k$-means++ \cite{arthur2007k} is a widely used clustering algorithm that is easy to implement, has nice theoretical guarantees and strong empirical performance. Despite its wide adoption, $k$-means++ sometimes suffers from being slow on…

Machine Learning · Computer Science 2020-12-23 Vincent Cohen-Addad , Silvio Lattanzi , Ashkan Norouzi-Fard , Christian Sohler , Ola Svensson

Quantum machine learning is one of the most promising applications of a full-scale quantum computer. Over the past few years, many quantum machine learning algorithms have been proposed that can potentially offer considerable speedups over…

Quantum Physics · Physics 2021-06-14 Iordanis Kerenidis , Jonas Landman , Alessandro Luongo , Anupam Prakash