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ISSN: 2405-9188

Pairs trading with time-series deep learning models

Pairs trading is a well-studied statistical arbitrage strategy including the identification of asset pairs exhibiting correlated changes in their historical prices. This statistical arbitrage strategy...

Explainable ensemble machine learning for financial transaction fraud detection: Insights from XGBoost and deep neural networks

The rapid digitalization of financial services has enhanced transaction speed and accessibility but also amplified exposure to fraud activities that undermine institutional integrity and consumer trust....

Audit data analytics, machine learning, and full population testing

Emerging technologies like data analytics and machine learning are impacting the accounting profession. In particular, significant changes are anticipated in audit and assurance procedures because of...

The use of predictive analytics in finance

Statistical and computational methods are being increasingly integrated into Decision Support Systems to aid management and help with strategic decisions. Researchers need to fully understand the use...

End-to-end large portfolio optimization for variance minimization with neural networks through covariance cleaning

We develop a rotation-invariant neural network that provides the global minimum-variance portfolio by jointly learning how to lag-transform historical returns and marginal volatilities and how to regularise...

Credit scoring methods: Latest trends and points to consider

Credit risk is the most significant risk by impact for any bank and financial institution. Accurate credit risk assessment affects an organisation's balance sheet and income statement, since credit...

Finding money launderers using heterogeneous graph neural networks

The finance industry depends on effective anti-money laundering (AML) systems to ensure compliance and maintain operational efficiency. However, existing AML systems, which are predominantly rule-based,...

Selecting appropriate methodological framework for time series data analysis

Economists face method selection problem while working with time series data. As time series data may possess specific properties such as trend and structural break, common methods used to analyze other...

Reinforcement learning for automated market making in cryptocurrency perpetual futures: Integrating funding rate dynamics with historical BTCUSDT evidence

The emergence of cryptocurrency perpetual futures has created unique opportunities for automated market making, yet existing approaches often ignore the funding rate mechanism that transfers payments...

The applications of big data in the insurance industry: A bibliometric and systematic review of relevant literature

The insurance industry has changed rapidly over the last few decades. One factor in this change is the continuous growth of massive amounts of data that need to be processed properly to be optimally...

Machine learning for cryptocurrency market prediction and trading

We employ and analyze various machine learning models for daily cryptocurrency market prediction and trading. We train the models to predict binary relative daily market movements of the 100 largest...

Making it into a successful series A funding: An analysis of Crunchbase and LinkedIn data

Startups are a key force driving economic development, and the success of these high-risk ventures can bring huge profits to venture capital firms. The ability to predict the success of startups is...

Characterization of S&P 500 companies by sector using artificial intelligence: Statistical evidence and machine learning application

This article explores the extent to which established sector classifications continue to provide meaningful insights into the financial underpinnings of firms. Utilizing a contemporary cross-sectional...

Technical patterns and news sentiment in stock markets

This paper explores the effectiveness of technical patterns in predicting asset prices and market movements, emphasizing the role of news sentiment. We employ an image recognition method to detect technical...

Short-term bitcoin market prediction via machine learning

We analyze the predictability of the bitcoin market across prediction horizons ranging from 1 to 60 min. In doing so, we test various machine learning models and find that, while all models outperform...

A Conformable Heston option pricing model

In the aftermath of the proposal of the Black-Scholes-Merton model in 1973, a considerable number of research groups issued substantial criticisms of the model. An initial observation revealed a discontinuity...

Deep unsupervised anomaly detection in high-frequency markets

Inspired by recent advances in the deep learning literature, this article introduces a novel hybrid anomaly detection framework specifically designed for limit order book (LOB) data. A modified Transformer...

A meta reinforcement learning approach to goals-based wealth management

Applying concepts related to zero-shot meta-learning and pre-training of foundation models, we develop a meta reinforcement learning approach (denoted MetaRL) that is pre-trained on thousands of goals-based...

CentralBankRoBERTa: A fine-tuned large language model for central bank communications

Central bank communications are an important tool for guiding the economy and fulfilling monetary policy goals. Natural language processing (NLP) algorithms have been used to analyze central bank communications....

RMSE-triggered rebalancing for deep learning-guided portfolio optimization

This paper addresses the gap between improved forecasting accuracy from machine learning and deep learning models and their limited translation into realized portfolio performance under transaction-cost...

Financial inclusion, technologies, and worldwide economic development: A spatial Durbin model approach

Using panel data from 144 countries, this study constructed an inclusive financial evaluation index and depicted the inclusive finance development worldwide under digital empowerment through classification....

The great wall of debt: Real estate, political risk, and Chinese local government financing cost

Chengtou bond is the only asset with market prices that can capture the funding cost of Chinese local government debt. In contrast to the U.S. municipal bonds, Chengtou bonds are issued by private corporations...

Stock price prediction using support vector regression on daily and up to the minute prices

The purpose of predictive stock price systems is to provide abnormal returns for financial market operators and serve as a basis for risk management tools. Although the Efficient Market Hypothesis (EMH)...

Machine learning portfolio allocation

We find economically and statistically significant gains when using machine learning for portfolio allocation between the market index and risk-free asset. Optimal portfolio rules for time-varying expected...

Fintech, financial inclusion, digital currency, and CBDC

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