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A regularized vector autoregressive hidden semi-Markov model is developed to analyze multivariate financial time series with switching data generating regimes. Furthermore, an augmented EM algorithm is proposed for parameter estimation by…

Applications · Statistics 2021-05-19 Zekun Xu , Ye Liu

This article considers a model for alternative processes for securities prices and compares this model with actual return data of several securities. The distributions of returns that appear in the model can be Gaussian as well as…

Adaptation and Self-Organizing Systems · Physics 2008-12-02 Kyrylo Shmatov , Mikhail Smirnov

Traditional stock market prediction methods commonly only utilize the historical trading data, ignoring the fact that stock market fluctuations can be impacted by various other information sources such as stock related events. Although some…

Statistical Finance · Quantitative Finance 2018-10-16 Xi Zhang , Yixuan Li , Senzhang Wang , Binxing Fang , Philip S. Yu

Kolmogorov complexity and algorithmic probability are defined only up to an additive resp. multiplicative constant, since their actual values depend on the choice of the universal reference computer. In this paper, we analyze a natural…

Information Theory · Computer Science 2010-03-29 Markus Mueller

We give three derivations of Polya's approximation for the expected range of a simple random walk in one dimension. This result allows for an estimation of the volatility of a financial instrument from the difference between the high and…

Probability · Mathematics 2013-05-21 Sami Assaf

We present several models to describe the stochastic evolution of stocks that show some strong resistance at some level and generalize to this situation the evolution based upon geometric Brownian motion. If volatility and drift are related…

Physics and Society · Physics 2009-11-13 Javier Villarroel

We have proposed to develop a global hybrid deep learning framework to predict the daily prices in the stock market. With representation learning, we derived an embedding called Stock2Vec, which gives us insight for the relationship among…

Statistical Finance · Quantitative Finance 2020-10-06 Xing Wang , Yijun Wang , Bin Weng , Aleksandr Vinel

Data Mining is being actively applied to stock market since 1980s. It has been used to predict stock prices, stock indexes, for portfolio management, trend detection and for developing recommender systems. The various algorithms which have…

Neural and Evolutionary Computing · Computer Science 2013-02-06 Savinderjit Kaur , Veenu Mangat

This paper studies three ways to construct a nonhomogeneous jump Markov process: (i) via a compensator of the random measure of a multivariate point process, (ii) as a minimal solution of the backward Kolmogorov equation, and (iii) as a…

Probability · Mathematics 2013-04-09 Eugene A. Feinberg , Manasa Mandava , Albert N. Shiryaev

Building predictive models for robust and accurate prediction of stock prices and stock price movement is a challenging research problem to solve. The well-known efficient market hypothesis believes in the impossibility of accurate…

Statistical Finance · Quantitative Finance 2021-10-12 Jaydip Sen , Sidra Mehtab

Evolution of genus density is calculated from Gaussian initial conditions using Zel'dovich approximation. A new approach is introduced which formulates the desired quantity in a rotationally invariant manner. It is shown that normalized…

Astrophysics · Physics 2016-08-30 Naoki Seto , Jun'ichi Yokoyama , Takahiko Matsubara , Masaru Siino

We consider an important class of derivative contracts written on multiple assets (so-called spread options) which are traded on a wide range of financial markets. The present paper introduces a new approximation method of density functions…

Probability · Mathematics 2013-09-19 Alexander Kushpel

Google Trends reports how frequently specific queries are searched on Google over time. It is widely used in research and industry to gain early insights into public interest. However, its data generation mechanism introduces missing…

Applications · Statistics 2025-10-15 Candice Djorno , Mauricio Santillana , Shihao Yang

The p-adic theory of the stock market is presented. It is shown that the price dynamics is very naturally described by the adelic function. The procedure of derivation of the functional integral formulation of adelic type is derived from…

General Finance · Quantitative Finance 2011-02-15 V. Zharkov

Quantitative trading strategies rely on accurately ranking stocks to identify profitable investments. Effective portfolio management requires models that can reliably order future stock returns. Transformer models are promising for…

Machine Learning · Computer Science 2025-10-17 Jan Kwiatkowski , Jarosław A. Chudziak

Stochastic differential equations (SDEs) and the Kolmogorov partial differential equations (PDEs) associated to them have been widely used in models from engineering, finance, and the natural sciences. In particular, SDEs and Kolmogorov…

Numerical Analysis · Mathematics 2021-10-05 Christian Beck , Sebastian Becker , Philipp Grohs , Nor Jaafari , Arnulf Jentzen

A definition of entropy via the Kolmogorov algorithmic complexity is discussed. As examples, we show how the meanfield theory for the Ising model, and the entropy of a perfect gas can be recovered. The connection with computations are…

Statistical Mechanics · Physics 2007-05-23 Somendra M. Bhattacharjee

We analyse derivative securities whose value is NOT a deterministic function of an underlying which means presence of a basis risk at any time. The key object of our analysis is conditional probability distribution at a given underlying…

Probability · Mathematics 2008-12-10 S. Esipov , I. Vaysburd

Web search data are a valuable source of business and economic information. Previous studies have utilized Google Trends web search data for economic forecasting. We expand this work by providing algorithms to combine and aggregate search…

Econometrics · Economics 2018-03-28 Stephen L. France , Yuying Shi

This paper proposes a novel trading system which plays the role of an artificial counselor for stock investment. In this paper, the stock future prices (technical features) are predicted using Support Vector Regression. Thereafter, the…

General Finance · Quantitative Finance 2019-08-09 Hadi NekoeiQachkanloo , Benyamin Ghojogh , Ali Saheb Pasand , Mark Crowley
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