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With the development of artificial intelligence technology, quantitative trading systems represented by reinforcement learning have emerged in the stock trading market. The authors combined the deep Q network in reinforcement learning with…

Statistical Finance · Quantitative Finance 2021-12-01 Yizhuo Li , Peng Zhou , Fangyi Li , Xiao Yang

High-dimensional portfolio optimization faces significant computational challenges under complex constraints, with traditional optimization methods struggling to balance convergence speed and global exploration capability. To address this,…

Neural and Evolutionary Computing · Computer Science 2026-04-06 Mingyang Yu , Jiaqi Zhang , Haorui Yang , Adam Slowik , Jun Zhang , Jing Xu

Non-concave maximization has been the subject of much recent study in the optimization and machine learning communities, specifically in deep learning. Recent papers Ge et al, Lee et al (and references therein) indicate that first order…

Optimization and Control · Mathematics 2020-01-14 Ioannis Panageas , Georgios Piliouras , Xiao Wang

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

We present a hybrid classical-quantum framework for portfolio construction and rebalancing. Asset selection is performed using Ledoit-Wolf shrinkage covariance estimation combined with hierarchical correlation clustering to extract n = 10…

Portfolio Management · Quantitative Finance 2026-03-19 Abraham Itzhak Weinberg

Automated matching engines execute millions of orders per session, yet systematic asymmetries in latency, order size, and market access compound into persistent execution disparities that erode participant trust. We formulate provably fair…

Computer Science and Game Theory · Computer Science 2026-04-09 Zehua Cheng , Zhipeng Wang , Wei Dai , Wenhu Zhang , Vadzim Mahilny , David Shi , Elena Jia , Jiahao Sun

This paper studies cross-market return predictability through a machine learning framework that preserves economic structure. Exploiting the non-overlapping trading hours of the U.S. and Chinese equity markets, we construct a directed…

Machine Learning · Computer Science 2026-04-15 Jing Liu , Maria Grith , Xiaowen Dong , Mihai Cucuringu

For LLM trading agents to be genuinely trustworthy, they must demonstrate understanding of market dynamics rather than exploitation of memorized ticker associations. Building responsible multi-agent systems demands rigorous signal…

Machine Learning · Computer Science 2026-03-19 Joohyoung Jeon , Hongchul Lee

In this paper, We propose a new style panel data factor stochastic volatility model with observable factors and unobservable factors based on the multivariate stochastic volatility model, which is mainly composed of three parts, such as the…

Methodology · Statistics 2019-04-09 Guobin Fang , Huimin Ma , Michelle Xia , Bo Zhang

Machine unlearning (MU) aims to remove the influence of specific data from a trained model. However, approximate unlearning methods, often formulated as a single-objective optimization (SOO) problem, face a critical trade-off between…

Machine Learning · Computer Science 2025-10-23 Youngsik Hwang , Dong-Young Lim

Although machine learning approaches have been widely used in the field of finance, to very successful degrees, these approaches remain bespoke to specific investigations and opaque in terms of explainability, comparability, and…

Trading and Market Microstructure · Quantitative Finance 2022-06-22 Artur Sokolovsky , Luca Arnaboldi

This paper studies a robust continuous-time Markowitz portfolio selection pro\-blem where the model uncertainty carries on the covariance matrix of multiple risky assets. This problem is formulated into a min-max mean-variance problem over…

Portfolio Management · Quantitative Finance 2017-03-14 Amine Ismail , Huyên Pham

In this review, we provide practical guidance on some of the main machine learning tools used in portfolio weight formation. This is not an exhaustive list, but a fraction of the ones used and have some statistical analysis behind it. All…

Portfolio Management · Quantitative Finance 2025-10-01 Mehmet Caner Qingliang Fan

In financial trading, return prediction is one of the foundation for a successful trading system. By the fast development of the deep learning in various areas such as graphical processing, natural language, it has also demonstrate…

Machine Learning · Computer Science 2025-03-24 Zijian Zhao , Xuming Zhang , Jiayu Wen , Mingwen Liu , Xiaoteng Ma

We consider large-scale linear inverse problems in Bayesian settings. We follow a recent line of work that applies the approximate message passing (AMP) framework to multi-processor (MP) computational systems, where each processor node…

Information Theory · Computer Science 2016-11-09 Junan Zhu , Dror Baron , Ahmad Beirami

Accurate prediction of pure component physiochemical properties is crucial for process integration, multiscale modeling, and optimization. In this work, an enhanced framework for pure component property prediction by using explainable…

Applications · Statistics 2025-06-09 Jianfeng Jiao , Xi Gao , Jie Li

We investigate multi-period mean-risk portfolio optimization for long-horizon Defined Contribution plans, focusing on buffered Probability of Exceedance (bPoE), a more intuitive, dollar-based alternative to Conditional Value-at-Risk (CVaR).…

Portfolio Management · Quantitative Finance 2026-02-17 Duy-Minh Dang , Chang Chen

Nonnegative Matrix Factorization (NMF) is a data analysis technique which allows compression and interpretation of nonnegative data. NMF became widely studied after the publication of the seminal paper by Lee and Seung (Learning the Parts…

Numerical Analysis · Mathematics 2008-10-24 Nicolas Gillis , François Glineur

This paper presents an augmented deep factor model that generates latent factors for cross-sectional asset pricing. The conventional security sorting on firm characteristics for constructing long-short factor portfolio weights is nonlinear…

Methodology · Statistics 2024-12-11 Guanhao Feng , Jingyu He , Nicholas G. Polson , Jianeng Xu

We study an assortment optimization problem under a multi-purchase choice model in which customers choose a bundle of up to one product from each of two product categories. Different bundles have different utilities and the bundle price is…

Data Structures and Algorithms · Computer Science 2022-10-12 Xin Chen , Jiachun Li , Menglong Li , Tiancheng Zhao , Yuan Zhou
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