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Most recent developments on the stochastic block model (SBM) rely on the knowledge of the model parameters, or at least on the number of communities. This paper introduces efficient algorithms that do not require such knowledge and yet…

Probability · Mathematics 2015-06-12 Emmanuel Abbe , Colin Sandon

Pearson correlation and mutual information based complex networks of the day-to-day returns of US S&P500 stocks between 1985 and 2015 have been constructed in order to investigate the mutual dependencies of the stocks and their nature. We…

Statistical Finance · Quantitative Finance 2019-07-08 Alexander Haluszczynski , Ingo Laut , Heike Modest , Christoph Räth

Graph clustering and community detection are central problems in modern data mining. The increasing need for analyzing billion-scale data calls for faster and more scalable algorithms for these problems. There are certain trade-offs between…

Social and Information Networks · Computer Science 2021-08-05 Jessica Shi , Laxman Dhulipala , David Eisenstat , Jakub Łącki , Vahab Mirrokni

We introduce the Speculative Influence Network (SIN) to decipher the causal relationships between sectors (and/or firms) during financial bubbles. The SIN is constructed in two steps. First, we develop a Hidden Markov Model (HMM) of…

Statistical Finance · Quantitative Finance 2015-10-29 Li Lin , Didier Sornette

In recent years, the dominance of machine learning in stock market forecasting has been evident. While these models have shown decreasing prediction errors, their robustness across different datasets has been a concern. A successful stock…

Computational Finance · Quantitative Finance 2025-02-18 Peiwan Wang , Chenhao Cui , Yong Li

Neural networks achieve strong empirical performance, but robustness concerns still hinder deployment in safety-critical applications. Formal verification provides robustness guarantees, but current methods face a scalability-completeness…

Machine Learning · Computer Science 2026-02-06 Wenting Li , Saif R. Kazi , Russell Bent , Duo Zhou , Huan Zhang

In recent years, machine learning (ML) has brought effective approaches and novel techniques to economic decision, investment forecasting, and risk management, etc., coping the variable and intricate nature of economic and financial…

Computational Engineering, Finance, and Science · Computer Science 2023-12-25 Huajian Li , Longjian Li , Jiajian Liang , Weinan Dai

In finance, Random Matrix Theory (RMT) is an important tool for filtering out noise from large datasets, revealing true correlations among stocks, enhancing risk management and portfolio optimization. In this study, we use RMT to filter out…

Social and Information Networks · Computer Science 2024-10-11 Pawanesh , Imran Ansari , Niteesh Sahni

The stochastic block model (SBM) with two communities, or equivalently the planted bisection model, is a popular model of random graph exhibiting a cluster behaviour. In the symmetric case, the graph has two equally sized clusters and…

Social and Information Networks · Computer Science 2014-10-29 Emmanuel Abbe , Afonso S. Bandeira , Georgina Hall

Understanding and forecasting changing market conditions in complex economic systems like the financial market is of great importance to various stakeholders such as financial institutions and regulatory agencies. Based on the finding that…

Statistical Finance · Quantitative Finance 2023-05-10 Tobias Wand , Martin Heßler , Oliver Kamps

Components of complex systems are often classified according to the way they interact with each other. In graph theory such groups are known as clusters or communities. Many different techniques have been recently proposed to detect them,…

Physics and Society · Physics 2010-04-30 Muhittin Mungan , Jose J. Ramasco

Consider the community detection problem in random hypergraphs under the non-uniform hypergraph stochastic block model (HSBM), where each hyperedge appears independently with some given probability depending only on the labels of its…

Statistics Theory · Mathematics 2024-08-29 Ioana Dumitriu , Haixiao Wang

The Maximum Betweenness Centrality problem (MBC) can be defined as follows. Given a graph find a $k$-element node set $C$ that maximizes the probability of detecting communication between a pair of nodes $s$ and $t$ chosen uniformly at…

Data Structures and Algorithms · Computer Science 2010-08-23 Martin Fink , Joachim Spoerhase

The $\boldsymbol{\beta}$-model for random graphs is commonly used for representing pairwise interactions in a network with degree heterogeneity. Going beyond pairwise interactions, Stasi et al. (2014) introduced the hypergraph…

Statistics Theory · Mathematics 2024-06-07 Sagnik Nandy , Bhaswar B. Bhattacharya

In many applications it is of interest to identify anomalous behavior within a dynamic interacting system. Such anomalous interactions are reflected by structural changes in the network representation of the system. We propose and…

Methodology · Statistics 2016-12-01 James D. Wilson , Nathaniel T. Stevens , William H. Woodall

Navigating the intricate landscape of financial markets requires adept forecasting of stock price movements. This paper delves into the potential of Long Short-Term Memory (LSTM) networks for predicting stock dynamics, with a focus on…

Trading and Market Microstructure · Quantitative Finance 2024-03-29 Nisarg Patel , Harmit Shah , Kishan Mewada

We present an advance bubble detection methodology based on the Log Periodic Power Law Singularity (LPPLS) confidence indicator for the early causal identification of positive and negative bubbles in the Chinese stock market using the daily…

Statistical Finance · Quantitative Finance 2020-08-26 Min Shu , Wei Zhu

We investigate the widely encountered problem of detecting communities in multiplex networks, such as social networks, with an unknown arbitrary heterogeneous structure. To improve detectability, we propose a generative model that leverages…

Social and Information Networks · Computer Science 2019-11-27 Yuming Huang , Ashkan Panahi , Hamid Krim , Liyi Dai

Many recent developments in network analysis have focused on multilayer networks, which one can use to encode time-dependent interactions, multiple types of interactions, and other complications that arise in complex systems. Like their…

Social and Information Networks · Computer Science 2021-01-04 A. Roxana Pamfil , Sam D. Howison , Mason A. Porter

Bayesian Neural Networks (BNNs) provide a promising framework for modeling predictive uncertainty and enhancing out-of-distribution robustness (OOD) by estimating the posterior distribution of network parameters. Stochastic Gradient Markov…

Machine Learning · Computer Science 2025-03-04 Hyunsu Kim , Giung Nam , Chulhee Yun , Hongseok Yang , Juho Lee