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Predicting default is essential for banks to ensure profitability and financial stability. While modern machine learning methods often outperform traditional regression techniques, their lack of transparency limits their use in regulated…

Machine Learning · Computer Science 2025-09-16 Sagi Schwartz , Qinling Wang , Fang Fang

This paper introduces MarketSenseAI, an innovative framework leveraging GPT-4's advanced reasoning for selecting stocks in financial markets. By integrating Chain of Thought and In-Context Learning, MarketSenseAI analyzes diverse data…

Computational Finance · Quantitative Finance 2025-02-04 Georgios Fatouros , Konstantinos Metaxas , John Soldatos , Dimosthenis Kyriazis

Stock trend analysis has been an influential time-series prediction topic due to its lucrative and inherently chaotic nature. Many models looking to accurately predict the trend of stocks have been based on Recurrent Neural Networks (RNNs).…

Statistical Finance · Quantitative Finance 2023-05-25 Harsimrat Kaeley , Ye Qiao , Nader Bagherzadeh

In the complex landscape of multivariate time series forecasting, achieving both accuracy and interpretability remains a significant challenge. This paper introduces the Fuzzy Transformer (Fuzzformer), a novel recurrent neural network…

Artificial Intelligence · Computer Science 2025-10-02 Miha Ožbot , Igor Škrjanc , Vitomir Štruc

The transformer models have been extensively used with good results in a wide area of machine learning applications including Large Language Models and image generation. Here, we inquire on the applicability of this approach to financial…

Artificial Intelligence · Computer Science 2025-03-14 Pierre Brugiere , Gabriel Turinici

The proposed system aims to use various machine learning algorithms to enhance financial prediction and generate highly accurate analyses. It introduces an AI-driven platform which offers inflation-analysis, stock market prediction, and…

Computational Engineering, Finance, and Science · Computer Science 2025-10-30 Vishal Patil , Kavya Bhand , Kaustubh Mukdam , Kavya Sharma , Manas Kawtikwar , Prajwal Kavhar , Hridayansh Kaware

Explainable artificial intelligence (XAI) is a set of tools and algorithms that applied or embedded to machine learning models to understand and interpret the models. They are recommended especially for complex or advanced models including…

Machine Learning · Computer Science 2024-07-18 Ahmed M Salih , Yuhe Wang

Time series models, typically trained on numerical data, are designed to forecast future values. These models often rely on weighted averaging techniques over time intervals. However, real-world time series data is seldom isolated and is…

Computation and Language · Computer Science 2024-07-08 Litton Jose Kurisinkel , Pruthwik Mishra , Yue Zhang

Explaining with examples is an intuitive way to justify AI decisions. However, it is challenging to understand how a decision value should change relative to the examples with many features differing by large amounts. We draw from real…

Human-Computer Interaction · Computer Science 2026-02-17 Yifan Zhang , Tianle Ren , Fei Wang , Brian Y Lim

Great research efforts have been devoted to exploiting deep neural networks in stock prediction. While long-range dependencies and chaotic property are still two major issues that lower the performance of state-of-the-art deep learning…

Statistical Finance · Quantitative Finance 2021-11-02 Junran Wu , Ke Xu , Xueyuan Chen , Shangzhe Li , Jichang Zhao

Traditional machine learning models often prioritize predictive accuracy, often at the expense of model transparency and interpretability. The lack of transparency makes it difficult for organizations to comply with regulatory requirements…

Machine Learning · Computer Science 2025-05-16 Fahad Almalki , Mehedi Masud

The application of deep learning to time series forecasting is one of the major challenges in present machine learning. We propose a novel methodology that combines machine learning and image processing methods to define and predict market…

Computational Finance · Quantitative Finance 2020-08-19 Bairui Du , Delmiro Fernandez-Reyes , Paolo Barucca

This research aims to leverage machine learning to improve stock price prediction and support informed investment decisions related to buying, selling, and holding assets. Specifically, this work investigates transformer-based models for…

Statistical Finance · Quantitative Finance 2026-05-26 Marie Soehl Coolsaet , Roberto Gallardo , Zhen Gao

Recently, the term explainable AI became known as an approach to produce models from artificial intelligence which allow interpretation. Since a long time, there are models of symbolic regression in use that are perfectly explainable and…

Machine Learning · Computer Science 2020-01-29 Markus Quade , Thomas Isele , Markus Abel

Traditionally, traders and quantitative analysts address alpha decay by manually crafting formulaic alphas, mathematical expressions that identify patterns or signals in financial data, through domain expertise and trial-and-error. This…

Computational Engineering, Finance, and Science · Computer Science 2026-03-05 Qizhao Chen , Hiroaki Kawashima

As Artificial Intelligence (AI) becomes increasingly embedded in financial decision-making, the opacity of complex models presents significant challenges for professionals and regulators. While the field of Explainable AI (XAI) attempts to…

Human-Computer Interaction · Computer Science 2026-02-03 Patricia Marcella Evite , Ekaterina Svetlova , Doina Bucur

There has been a significant surge of interest recently around the concept of explainable artificial intelligence (XAI), where the goal is to produce an interpretation for a decision made by a machine learning algorithm. Of particular…

Machine Learning · Computer Science 2019-10-31 Zhong Qiu Lin , Mohammad Javad Shafiee , Stanislav Bochkarev , Michael St. Jules , Xiao Yu Wang , Alexander Wong

Time series forecasting is crucial for decision-making across various domains, particularly in financial markets where stock prices exhibit complex and non-linear behaviors. Accurately predicting future price movements is challenging due to…

General Economics · Economics 2025-04-29 Tiantian Tu

Explainable Artificial Intelligence (XAI) has gained significant attention recently as the demand for transparency and interpretability of machine learning models has increased. In particular, XAI for time series data has become…

Machine Learning · Computer Science 2023-07-12 Udo Schlegel , Daniel A. Keim

This study proposes a novel hybrid deep learning framework that integrates a Large Language Model (LLM) with a Transformer architecture for stock price forecasting. The research addresses a critical theoretical gap in existing approaches…