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In this study, we propose a robust mixture regression procedure based on the skew t distribution to model heavy-tailed and/or skewed errors in a mixture regression setting. Using the scale mixture representation of the skew t distribution,…

Statistics Theory · Mathematics 2017-06-12 Fatma Zehra Doğru , Olcay Arslan

How can we address distribution shifts in stock price data to improve stock price prediction accuracy? Stock price prediction has attracted attention from both academia and industry, driven by its potential to uncover complex market…

Statistical Finance · Quantitative Finance 2025-09-01 Hyunwoo Lee , Jihyeong Jeon , Jaemin Hong , U Kang

Multi-modal distributions are commonly used to model clustered data in statistical learning tasks. In this paper, we consider the Mixed Linear Regression (MLR) problem. We propose an optimal transport-based framework for MLR problems,…

Machine Learning · Statistics 2021-06-17 Theo Diamandis , Yonina C. Eldar , Alireza Fallah , Farzan Farnia , Asuman Ozdaglar

In this paper we propose a bivariate generalization of a weighted indexed semi-Markov chains to study the high frequency price dynamics of traded stocks. We assume that financial returns are described by a weighted indexed semi-Markov chain…

Statistical Finance · Quantitative Finance 2013-05-03 Guglielmo D'Amico , Filippo Petroni

The estimation of asset return distributions is crucial for determining optimal trading strategies. In this paper we describe the constrained mixture model, based on a mixture of Gamma and Gaussian distributions, to provide an accurate…

Machine Learning · Statistics 2011-03-15 Iead Rezek

We propose and experimentally demonstrate an innovative stock index prediction method using a weighted optical reservoir computing system. We construct fundamental market data combined with macroeconomic data and technical indicators to…

Machine Learning · Computer Science 2024-08-02 Fang Wang , Ting Bu , Yuping Huang

In the present paper, Probability weighted moments (PWMs) method for parameter estimation of the median based unit weibull (MBUW) distribution is discussed. The most widely used first order PWMs is compared with the higher order PWMs for…

Methodology · Statistics 2025-11-20 Iman Mohammed Attia

The significant fluctuations in stock index prices in recent years highlight the critical need for accurate forecasting to guide investment and financial strategies. This study introduces a novel composite forecasting framework that…

Machine Learning · Computer Science 2024-08-30 Xiaorui Xue , Shaofang Li , Xiaonan Wang

This paper presents an innovative online portfolio selection model, situated within a meta-learning framework, that leverages a mixture policies strategy. The core idea is to simulate a fund that employs multiple fund managers, each skilled…

Optimization and Control · Mathematics 2025-05-13 Jiayu Shen , Jia Liu , Zhiping Chen

This paper presents a novel approach to stochastic volatility (SV) modeling by utilizing nonparametric techniques that enhance our ability to capture the volatility of financial time series data, with a particular emphasis on the…

Computation · Statistics 2025-02-18 Yudong Feng , Ashis Gangopadhyay

Regression models, where the response variable is circular, are common in areas such as biology, geology and meteorology. A typical model assumes that the conditional distribution of the response follows a von-Mises distribution. However,…

Methodology · Statistics 2026-01-12 Sphiwe B. Skhosana , Najmeh Nakhaei Rad

The maximum ${\log}_q$ likelihood estimation method is a generalization of the known maximum $\log$ likelihood method to overcome the problem for modeling non-identical observations (inliers and outliers). The parameter $q$ is a tuning…

Methodology · Statistics 2020-12-16 Mehmet Niyazi Çankaya , Roberto Vila

Recent developments in financial time series focus on modeling volatility across multiple assets or indices in a multivariate framework, accounting for potential interactions such as spillover effects. Furthermore, the increasing…

Applications · Statistics 2026-01-26 Edoardo Otranto , Luca Scaffidi Domianello

The proposed model modifies option pricing formulas for the basic case of log-normal probability distribution providing correspondence to formulated criteria of efficiency and completeness. The model is self-calibrating by historic…

Pricing of Securities · Quantitative Finance 2008-12-02 Pavel Levin

It is standard practice for covariates to enter a parametric model through a single distributional parameter of interest, for example, the scale parameter in many standard survival models. Indeed, the well-known proportional hazards model…

Methodology · Statistics 2020-08-10 Kevin Burke , Gilbert MacKenzie

Considerable efforts have been devoted to statistical modeling and the characterization of channels in a range of statistical models for fading channels. In this paper, we consider a unified approach to model wireless channels by the…

Information Theory · Computer Science 2016-11-15 Bassant Selim , Omar Alhussein , Sami Muhaidat , George K. Karagiannidis , Jie Liang

This research develops a Bayesian framework for analyzing failure times using the Weibull distribution, addressing challenges in prior selection due to the lack of conjugate priors and multi-dimensional sufficient statistics. We propose an…

Methodology · Statistics 2025-06-16 Tobias Oketch , Mohammad Sepehrifar

This paper presents MSMF (Multi-Scale Multi-Modal Fusion), a novel approach for enhanced stock market prediction. MSMF addresses key challenges in multi-modal stock analysis by integrating a modality completion encoder, multi-scale feature…

Computational Engineering, Finance, and Science · Computer Science 2024-09-13 Jiahao Qin

Wrong-Way Risk (WWR) is an important component in Funding Valuation Adjustment (FVA) modelling. Yet, the standard assumption is independence between market risks and the counterparty defaults and funding costs. This typical industrial…

Computational Finance · Quantitative Finance 2024-06-07 T. van der Zwaard , L. A. Grzelak , C. W. Oosterlee

Financial stock returns correlations have been studied in the prism of random matrix theory, to distinguish the signal from the "noise". Eigenvalues of the matrix that are above the rescaled Marchenko Pastur distribution can be interpreted…

Statistical Finance · Quantitative Finance 2025-08-19 Ixandra Achitouv