Deep Learning for Forecasting Stock Returns in the Cross-Section

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 recognition, has attracted attention in the machine learning field. This paper implements deep learning to predict one-month-ahead stock returns in the cross-section in the Japanese stock market and investigates the performance of the method. Our results show that deep neural networks generally outperform shallow neural networks, and the best networks also outperform representative machine learning models. These results indicate that deep learning shows promise as a skillful machine learning method to predict stock returns in the cross-section.Comment: 12 pages, 2 figures, 8 tables, accepted at PAKDD 201

Deep learning for supervised classification

One of the most recent area in the Machine Learning research is Deep Learning. Deep Learning algorithms have been applied successfully to computer vision, automatic speech recognition, natural language processing, audio recognition and bioinformatics. The key idea of Deep Learning is to combine the best techniques from Machine Learning to build powerful general‑purpose learning algorithms. It is a mistake to identify Deep Neural Networks with Deep Learning Algorithms. Other approaches are possible, and in this paper we illustrate a generalization of Stacking which has very competitive performances. In particular, we show an application of this approach to a real classification problem, where a three-stages Stacking has proved to be very effective

Machine Learning for Software Engineering: Models, Methods, and Applications

Machine Learning (ML) is the discipline that studies methods for automatically inferring models from data. Machine learning has been successfully applied in many areas of software engineering ranging from behaviour extraction, to testing, to bug fixing. Many more applications are yet be defined. However, a better understanding of ML methods, their assumptions and guarantees would help software engineers adopt and identify the appropriate methods for their desired applications. We argue that this choice can be guided by the models one seeks to infer. In this technical briefing, we review and reflect on the applications of ML for software engineering organised according to the models they produce and the methods they use. We introduce the principles of ML, give an overview of some key methods, and present examples of areas of software engineering benefiting from ML. We also discuss the open challenges for reaching the full potential of ML for software engineering and how ML can benefit from software engineering methods

Industry-scale application and evaluation of deep learning for drug target prediction

Artificial intelligence (AI) is undergoing a revolution thanks to the breakthroughs of machine learning algorithms in computer vision, speech recognition, natural language processing and generative modelling. Recent works on publicly available pharmaceutical data showed that AI methods are highly promising for Drug Target prediction. However, the quality of public data might be different than that of industry data due to different labs reporting measurements, different measurement techniques, fewer samples and less diverse and specialized assays. As part of a European funded project (ExCAPE), that brought together expertise from pharmaceutical industry, machine learning, and high-performance computing, we investigated how well machine learning models obtained from public data can be transferred to internal pharmaceutical industry data. Our results show that machine learning models trained on public data can indeed maintain their predictive power to a large degree when applied to industry data. Moreover, we observed that deep learning derived machine learning models outperformed comparable models, which were trained by other machine learning algorithms, when applied to internal pharmaceutical company datasets. To our knowledge, this is the first large-scale study evaluating the potential of machine learning and especially deep learning directly at the level of industry-scale settings and moreover investigating the transferability of publicly learned target prediction models towards industrial bioactivity prediction pipelines.Web of Science121art. no. 2