Forecasting of financial data: a novel fuzzy logic neural network based on error-correction concept and statistics

First, this paper investigates the effect of good and bad news on volatility in the BUX return time series using asymmetric ARCH models. Then, the accuracy of forecasting models based on statistical (stochastic), machine learning methods, and soft/granular RBF network is investigated. To forecast the high-frequency financial data, we apply statistical ARMA and asymmetric GARCH-class models. A novel RBF network architecture is proposed based on incorporation of an error-correction mechanism, which improves forecasting ability of feed-forward neural networks. These proposed modelling approaches and SVM models are applied to predict the high-frequency time series of the BUX stock index. We found that it is possible to enhance forecast accuracy and achieve significant risk reduction in managerial decision making by applying intelligent forecasting models based on latest information technologies. On the other hand, we showed that statistical GARCH-class models can identify the presence of leverage effects, and react to the good and bad news.Web of Science421049

Memristors for the Curious Outsiders

We present both an overview and a perspective of recent experimental advances and proposed new approaches to performing computation using memristors. A memristor is a 2-terminal passive component with a dynamic resistance depending on an internal parameter. We provide an brief historical introduction, as well as an overview over the physical mechanism that lead to memristive behavior. This review is meant to guide nonpractitioners in the field of memristive circuits and their connection to machine learning and neural computation.Comment: Perpective paper for MDPI Technologies; 43 page

Covering matroid

In this paper, we propose a new type of matroids, namely covering matroids, and investigate the connections with the second type of covering-based rough sets and some existing special matroids. Firstly, as an extension of partitions, coverings are more natural combinatorial objects and can sometimes be more efficient to deal with problems in the real world. Through extending partitions to coverings, we propose a new type of matroids called covering matroids and prove them to be an extension of partition matroids. Secondly, since some researchers have successfully applied partition matroids to classical rough sets, we study the relationships between covering matroids and covering-based rough sets which are an extension of classical rough sets. Thirdly, in matroid theory, there are many special matroids, such as transversal matroids, partition matroids, 2-circuit matroid and partition-circuit matroids. The relationships among several special matroids and covering matroids are studied.Comment: 15 page

Towards a re-engineering method for web services architectures

Recent developments in Web technologies – in particular through the Web services framework – have greatly enhanced the flexible and interoperable implementation of service-oriented software architectures. Many older Web-based and other distributed software systems will be re-engineered to a Web services-oriented platform. Using an advanced e-learning system as our case study, we investigate central aspects of a re-engineering approach for the Web services platform. Since our aim is to provide components of the legacy system also as services in the new platform, re-engineering to suit the new development paradigm is as important as re-engineering to suit the new architectural requirements

Autoencoders for strategic decision support

In the majority of executive domains, a notion of normality is involved in most strategic decisions. However, few data-driven tools that support strategic decision-making are available. We introduce and extend the use of autoencoders to provide strategically relevant granular feedback. A first experiment indicates that experts are inconsistent in their decision making, highlighting the need for strategic decision support. Furthermore, using two large industry-provided human resources datasets, the proposed solution is evaluated in terms of ranking accuracy, synergy with human experts, and dimension-level feedback. This three-point scheme is validated using (a) synthetic data, (b) the perspective of data quality, (c) blind expert validation, and (d) transparent expert evaluation. Our study confirms several principal weaknesses of human decision-making and stresses the importance of synergy between a model and humans. Moreover, unsupervised learning and in particular the autoencoder are shown to be valuable tools for strategic decision-making