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Deep hedging represents a cutting-edge approach to risk management for financial derivatives by leveraging the power of deep learning. However, existing methods often face challenges related to computational inefficiency, sensitivity to…

Machine Learning · Computer Science 2025-02-26 Lei Zhao , Lin Cai

The behaviour of many real-world phenomena can be modelled by nonlinear dynamical systems whereby a latent system state is observed through a filter. We are interested in interacting subsystems of this form, which we model by a set of…

Machine Learning · Computer Science 2017-02-20 Oliver M. Cliff , Mikhail Prokopenko , Robert Fitch

Many studies have been undertaken by using machine learning techniques, including neural networks, to predict stock returns. Recently, a method known as deep learning, which achieves high performance mainly in image recognition and speech…

Statistical Finance · Quantitative Finance 2018-06-14 Masaya Abe , Hideki Nakayama

Artificial intelligence is transforming financial investment decision-making frameworks, with deep reinforcement learning demonstrating substantial potential in robo-advisory applications. This paper addresses the limitations of traditional…

Portfolio Management · Quantitative Finance 2025-02-24 Gang Huang , Xiaohua Zhou , Qingyang Song

Deep Reinforcement Learning (DRL) enables robots to learn complex behaviors through interaction with the environment. However, due to the unrestricted nature of the learning algorithms, the resulting solutions are often brittle and appear…

Robotics · Computer Science 2025-03-04 Oliver Hausdörfer , Alexander von Rohr , Éric Lefort , Angela Schoellig

The graph with complex annotations is the most potent data type, whose constantly evolving motivates further exploration of the unsupervised dynamic graph representation. One of the representative paradigms is graph contrastive learning. It…

Machine Learning · Computer Science 2024-12-20 Yiming Xu , Bin Shi , Teng Ma , Bo Dong , Haoyi Zhou , Qinghua Zheng

We propose a continuous optimization framework for discovering a latent directed acyclic graph (DAG) from observational data. Our approach optimizes over the polytope of permutation vectors, the so-called Permutahedron, to learn a…

Machine Learning · Computer Science 2023-02-14 Valentina Zantedeschi , Luca Franceschi , Jean Kaddour , Matt J. Kusner , Vlad Niculae

Dynamic portfolio optimization is the process of sequentially allocating wealth to a collection of assets in some consecutive trading periods, based on investors' return-risk profile. Automating this process with machine learning remains a…

Machine Learning · Computer Science 2019-01-28 Pengqian Yu , Joon Sern Lee , Ilya Kulyatin , Zekun Shi , Sakyasingha Dasgupta

Can an agent learn efficiently in a noisy and self adapting environment with sequential, non-stationary and non-homogeneous observations? Through trading bots, we illustrate how Deep Reinforcement Learning (DRL) can tackle this challenge.…

Machine Learning · Computer Science 2020-10-19 Eric Benhamou , David Saltiel , Sandrine Ungari , Abhishek Mukhopadhyay , Jamal Atif

This project investigates the interplay of technical, market, and statistical factors in predicting stock market performance, with a primary focus on S&P 500 companies. Utilizing a comprehensive dataset spanning multiple years, the analysis…

Statistical Finance · Quantitative Finance 2024-12-18 Jiajun Gu , Zichen Yang , Xintong Lin , Sixun Chen , YuTing Lu

The paper examines the performance of regression models (OLS linear regression, Ridge regression, Random Forest, and Fully-connected Neural Network) on the prediction of CMA (Conservative Minus Aggressive) factor premium and the performance…

Portfolio Management · Quantitative Finance 2024-07-23 Prabhu Prasad Panda , Maysam Khodayari Gharanchaei , Xilin Chen , Haoshu Lyu

Traffic flow prediction is a typical spatio-temporal prediction problem and has a wide range of applications. The core challenge lies in modeling the underlying complex spatio-temporal dependencies. Various methods have been proposed, and…

Machine Learning · Computer Science 2026-01-16 Yiqing Zou , Hanning Yuan , Qianyu Yang , Ziqiang Yuan , Shuliang Wang , Sijie Ruan

Social robot navigation can be helpful in various contexts of daily life but requires safe human-robot interactions and efficient trajectory planning. While modeling pairwise relations has been widely studied in multi-agent interacting…

Robotics · Computer Science 2024-11-13 Jiachen Li , Chuanbo Hua , Jianpeng Yao , Hengbo Ma , Jinkyoo Park , Victoria Dax , Mykel J. Kochenderfer

We show how D4PG can be used in conjunction with quantile regression to develop a hedging strategy for a trader responsible for derivatives that arrive stochastically and depend on a single underlying asset. We assume that the trader makes…

Computational Finance · Quantitative Finance 2023-01-05 Jay Cao , Jacky Chen , Soroush Farghadani , John Hull , Zissis Poulos , Zeyu Wang , Jun Yuan

Financial markets are difficult to predict due to its complex systems dynamics. Although there have been some recent studies that use machine learning techniques for financial markets prediction, they do not offer satisfactory performance…

Statistical Finance · Quantitative Finance 2022-01-31 Jia Wang , Tong Sun , Benyuan Liu , Yu Cao , Degang Wang

We propose a new risk sensitive reinforcement learning approach for the dynamic hedging of options. The approach focuses on the minimization of the tail risk of the final P&L of the seller of an option. Different from most existing…

Risk Management · Quantitative Finance 2024-11-15 Xianhua Peng , Xiang Zhou , Bo Xiao , Yi Wu

The endeavor of stock trend forecasting is principally focused on predicting the future trajectory of the stock market, utilizing either manual or technical methodologies to optimize profitability. Recent advancements in machine learning…

Computational Engineering, Finance, and Science · Computer Science 2025-02-19 Mingjie Wang , Juanxi Tian , Mingze Zhang , Jianxiong Guo , Weijia Jia

The unprecedented increase of commercial airlines and private jets over the next ten years presents a challenge for air traffic control. Precise flight trajectory prediction is of great significance in air transportation management, which…

Machine Learning · Computer Science 2022-03-18 Kai Zhang , Bowen Chen

We construct a price impact model between stocks in a correlated market. For the price change of a given stock induced by the short-run liquidity of this stock itself and of the information about other stocks, we introduce a self- and a…

Trading and Market Microstructure · Quantitative Finance 2019-04-23 Shanshan Wang , Thomas Guhr

In the domain of intelligent transportation systems, especially within the context of autonomous vehicle control, the preemptive holistic collaborative system has been presented as a promising solution to bring a remarkable enhancement in…

Systems and Control · Electrical Eng. & Systems 2025-02-07 Yuan Li , Xiang Dong , Tao Li , Junfeng Hao , Xiaoxue Xu , Sana Ullaha , Yincai Cai , Peng Wu , Ting Peng
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