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We present convincing empirical results on the application of Randomized Signature Methods for non-linear, non-parametric drift estimation for a multi-variate financial market. Even though drift estimation is notoriously ill defined due to…

Portfolio Management · Quantitative Finance 2023-12-29 Erdinc Akyildirim , Matteo Gambara , Josef Teichmann , Syang Zhou

We introduce Semantic State Abstraction Interfaces (SSAI): a methodological template for mapping sparse unstructured text into $K$ auditable, named coordinates with neutral defaults on no-news days, designed to separate representation…

Machine Learning · Computer Science 2026-05-11 Likhita Yerra , Remi Uttejitha Allam

AI and data driven solutions have been applied to different fields and achieved outperforming and promising results. In this research work we apply k-Nearest Neighbours, eXtreme Gradient Boosting and Random Forest classifiers for detecting…

Trading and Market Microstructure · Quantitative Finance 2022-06-14 Mohsen Asgari , Hossein Khasteh

We study dynamics of a simulated world with stock and money, driven by the externally given processes which we refer to as sentiments. The considered sentiments influence the buy/sell stock trading attitude, the perceived price uncertainty,…

Trading and Market Microstructure · Quantitative Finance 2017-07-26 Mikhail Goykhman

We present an online approach to portfolio selection. The motivation is within the context of algorithmic trading, which demands fast and recursive updates of portfolio allocations, as new data arrives. In particular, we look at two online…

Portfolio Management · Quantitative Finance 2010-05-20 Theodoros Tsagaris , Ajay Jasra , Niall Adams

The study of the stock market with the attraction of machine learning approaches is a major direction for revealing hidden market regularities. This knowledge contributes to a profound understanding of financial market dynamics and getting…

Machine Learning · Computer Science 2023-03-28 Andrei Zaichenko , Aleksei Kazakov , Elizaveta Kovtun , Semen Budennyy

Financial time series forecasting is fundamentally an information fusion challenge, yet most existing models rely on static architectures that struggle to integrate heterogeneous knowledge sources or adjust to rapid regime shifts.…

Artificial Intelligence · Computer Science 2025-12-23 Hafiz Saif Ur Rehman , Ling Liu , Kaleem Ullah Qasim

This study delves into the relationship between emotional trends from X platform data and the market dynamics of well-known cryptocurrencies Cardano, Binance, Fantom, Matic, and Ripple over the period from October 2022 to March 2023.…

Computation and Language · Computer Science 2024-05-07 Moein Shahiki Tash , Zahra Ahani , Olga Kolesnikova , Grigori Sidorov

This paper aims to develop new mathematical and computational tools for modeling the distribution of portfolio returns across portfolios. We establish relevant mathematical formulas and propose efficient algorithms, drawing upon powerful…

Computational Engineering, Finance, and Science · Computer Science 2021-05-17 Ludovic Calès , Apostolos Chalkis , Ioannis Z. Emiris

This paper investigates the potential improvement of the GPT-4 Language Learning Model (LLM) in comparison to BERT for modeling same-day daily stock price movements of Apple and Tesla in 2017, based on sentiment analysis of microblogging…

Statistical Finance · Quantitative Finance 2023-09-01 Rick Steinert , Saskia Altmann

As machine learning ascends the peak of computer science zeitgeist, the usage and experimentation with sentiment analysis using various forms of textual data seems pervasive. The effect is especially pronounced in formulating securities…

Computational Finance · Quantitative Finance 2018-02-23 Raeid Saqur , Nicole Langballe

We study the design of portfolios under a minimum risk criterion. The performance of the optimized portfolio relies on the accuracy of the estimated covariance matrix of the portfolio asset returns. For large portfolios, the number of…

Portfolio Management · Quantitative Finance 2016-01-20 Liusha Yang , Romain Couillet , Matthew R. McKay

Sentiment analysis, a popular technique for opinion mining, has been used by the software engineering research community for tasks such as assessing app reviews, developer emotions in issue trackers and developer opinions on APIs. Past…

Computation and Language · Computer Science 2018-12-27 Achyudh Ram , Meiyappan Nagappan

The application of Machine learning to finance has become a familiar approach, even more so in stock market forecasting. The stock market is highly volatile, and huge amounts of data are generated every minute globally. The extraction of…

Computation and Language · Computer Science 2024-01-03 Sai Akash Bathini , Dagli Cihan

For a long time predicting, studying and analyzing financial indices has been of major interest for the financial community. Recently, there has been a growing interest in the Deep-Learning community to make use of reinforcement learning…

Statistical Finance · Quantitative Finance 2022-09-27 Jatin Nainani , Nirman Taterh , Md Ausaf Rashid , Ankit Khivasara

We investigate whether sophisticated volatility estimation improves the out-of-sample performance of mean-variance portfolio strategies relative to the naive 1/N strategy. The portfolio strategies rely solely upon second moments. Using a…

General Finance · Quantitative Finance 2022-02-15 Michael Curran , Patrick O'Sullivan , Ryan Zalla

Automated sentiment analysis and opinion mining is a complex process concerning the extraction of useful subjective information from text. The explosion of user generated content on the Web, especially the fact that millions of users, on a…

As the cornerstone of modern portfolio theory, Markowitz's mean-variance optimization is considered a major model adopted in portfolio management. However, due to the difficulty of estimating its parameters, it cannot be applied to all…

Machine Learning · Computer Science 2019-11-15 Mengying Zhu , Xiaolin Zheng , Yan Wang , Yuyuan Li , Qianqiao Liang

This article applies natural language processing (NLP) to extract and quantify textual information to predict stock performance. Using an extensive dataset of Chinese analyst reports and employing a customized BERT deep learning model for…

Computation and Language · Computer Science 2025-03-19 Rui Liu , Jiayou Liang , Haolong Chen , Yujia Hu

Volatility prediction--an essential concept in financial markets--has recently been addressed using sentiment analysis methods. We investigate the sentiment of annual disclosures of companies in stock markets to forecast volatility. We…

Information Retrieval · Computer Science 2018-04-05 Navid Rekabsaz , Mihai Lupu , Artem Baklanov , Allan Hanbury , Alexander Duer , Linda Anderson
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