An academic review: applications of data mining techniques in finance industry

With the development of Internet techniques, data volumes are doubling every two years, faster than predicted by Moore’s Law. Big Data Analytics becomes particularly important for enterprise business. Modern computational technologies will provide effective tools to help understand hugely accumulated data and leverage this information to get insights into the finance industry. In order to get actionable insights into the business, data has become most valuable asset of financial organisations, as there are no physical products in finance industry to manufacture. This is where data mining techniques come to their rescue by allowing access to the right information at the right time. These techniques are used by the finance industry in various areas such as fraud detection, intelligent forecasting, credit rating, loan management, customer profiling, money laundering, marketing and prediction of price movements to name a few. This work aims to survey the research on data mining techniques applied to the finance industry from 2010 to 2015.The review finds that Stock prediction and Credit rating have received most attention of researchers, compared to Loan prediction, Money Laundering and Time Series prediction. Due to the dynamics, uncertainty and variety of data, nonlinear mapping techniques have been deeply studied than linear techniques. Also it has been proved that hybrid methods are more accurate in prediction, closely followed by Neural Network technique. This survey could provide a clue of applications of data mining techniques for finance industry, and a summary of methodologies for researchers in this area. Especially, it could provide a good vision of Data Mining Techniques in computational finance for beginners who want to work in the field of computational finance

Hybrid self-organizing feature map (SOM) for anomaly detection in cloud infrastructures using granular clustering based upon value-difference metrics

We have witnessed an increase in the availability of data from diverse sources over the past few years. Cloud computing, big data and Internet-of-Things (IoT) are distinctive cases of such an increase which demand novel approaches for data analytics in order to process and analyze huge volumes of data for security and business use. Cloud computing has been becoming popular for critical structure IT mainly due to cost savings and dynamic scalability. Current offerings, however, are not mature enough with respect to stringent security and resilience requirements. Mechanisms such as anomaly detection hybrid systems are required in order to protect against various challenges that include network based attacks, performance issues and operational anomalies. Such hybrid AI systems include Neural Networks, blackboard systems, belief (Bayesian) networks, case-based reasoning and rule-based systems and can be implemented in a variety of ways. Traffic in the cloud comes from multiple heterogeneous domains and changes rapidly due to the variety of operational characteristics of the tenants using the cloud and the elasticity of the provided services. The underlying detection mechanisms rely upon measurements drawn from multiple sources. However, the characteristics of the distribution of measurements within specific subspaces might be unknown. We argue in this paper that there is a need to cluster the observed data during normal network operation into multiple subspaces each one of them featuring specific local attributes, i.e. granules of information. Clustering is implemented by the inference engine of a model hybrid NN system. Several variations of the so-called value-difference metric (VDM) are investigated like local histograms and the Canberra distance for scalar attributes, the Jaccard distance for binary word attributes, rough sets as well as local histograms over an aggregate ordering distance and the Canberra measure for vectorial attributes. Low-dimensional subspace representations of each group of points (measurements) in the context of anomaly detection in critical cloud implementations is based upon VD metrics and can be either parametric or non-parametric. A novel application of a Self-Organizing-Feature Map (SOFM) of reduced/aggregate ordered sets of objects featuring VD metrics (as obtained from distributed network measurements) is proposed. Each node of the SOFM stands for a structured local distribution of such objects within the input space. The so-called Neighborhood-based Outlier Factor (NOOF) is defined for such reduced/aggregate ordered sets of objects as a value-difference metric of histogrammes. Measurements that do not belong to local distributions are detected as anomalies, i.e. outliers of the trained SOFM. Several methods of subspace clustering using Expectation-Maximization Gaussian Mixture Models (a parametric approach) as well as local data densities (a non-parametric approach) are outlined and compared against the proposed method using data that are obtained from our cloud testbed in emulated anomalous traffic conditions. The results—which are obtained from a model NN system—indicate that the proposed method performs well in comparison with conventional techniques

Conference Program

Document provides a list of the sessions, speakers, workshops, and committees of the 32nd Summer Conference on Topology and Its Applications

Sistemas granulares evolutivos

Orientador: Fernando Antonio Campos GomideTese (doutorado) - Universidade Estadual de Campinas, Faculdade de Engenharia Elétrica e de ComputaçãoResumo: Recentemente tem-se observado um crescente interesse em abordagens de modelagem computacional para lidar com fluxos de dados do mundo real. Métodos e algoritmos têm sido propostos para obtenção de conhecimento a partir de conjuntos de dados muito grandes e, a princípio, sem valor aparente. Este trabalho apresenta uma plataforma computacional para modelagem granular evolutiva de fluxos de dados incertos. Sistemas granulares evolutivos abrangem uma variedade de abordagens para modelagem on-line inspiradas na forma com que os humanos lidam com a complexidade. Esses sistemas exploram o fluxo de informação em ambiente dinâmico e extrai disso modelos que podem ser linguisticamente entendidos. Particularmente, a granulação da informação é uma técnica natural para dispensar atenção a detalhes desnecessários e enfatizar transparência, interpretabilidade e escalabilidade de sistemas de informação. Dados incertos (granulares) surgem a partir de percepções ou descrições imprecisas do valor de uma variável. De maneira geral, vários fatores podem afetar a escolha da representação dos dados tal que o objeto representativo reflita o significado do conceito que ele está sendo usado para representar. Neste trabalho são considerados dados numéricos, intervalares e fuzzy; e modelos intervalares, fuzzy e neuro-fuzzy. A aprendizagem de sistemas granulares é baseada em algoritmos incrementais que constroem a estrutura do modelo sem conhecimento anterior sobre o processo e adapta os parâmetros do modelo sempre que necessário. Este paradigma de aprendizagem é particularmente importante uma vez que ele evita a reconstrução e o retreinamento do modelo quando o ambiente muda. Exemplos de aplicação em classificação, aproximação de função, predição de séries temporais e controle usando dados sintéticos e reais ilustram a utilidade das abordagens de modelagem granular propostas. O comportamento de fluxos de dados não-estacionários com mudanças graduais e abruptas de regime é também analisado dentro do paradigma de computação granular evolutiva. Realçamos o papel da computação intervalar, fuzzy e neuro-fuzzy em processar dados incertos e prover soluções aproximadas de alta qualidade e sumário de regras de conjuntos de dados de entrada e saída. As abordagens e o paradigma introduzidos constituem uma extensão natural de sistemas inteligentes evolutivos para processamento de dados numéricos a sistemas granulares evolutivos para processamento de dados granularesAbstract: In recent years there has been increasing interest in computational modeling approaches to deal with real-world data streams. Methods and algorithms have been proposed to uncover meaningful knowledge from very large (often unbounded) data sets in principle with no apparent value. This thesis introduces a framework for evolving granular modeling of uncertain data streams. Evolving granular systems comprise an array of online modeling approaches inspired by the way in which humans deal with complexity. These systems explore the information flow in dynamic environments and derive from it models that can be linguistically understood. Particularly, information granulation is a natural technique to dispense unnecessary details and emphasize transparency, interpretability and scalability of information systems. Uncertain (granular) data arise from imprecise perception or description of the value of a variable. Broadly stated, various factors can affect one's choice of data representation such that the representing object conveys the meaning of the concept it is being used to represent. Of particular concern to this work are numerical, interval, and fuzzy types of granular data; and interval, fuzzy, and neurofuzzy modeling frameworks. Learning in evolving granular systems is based on incremental algorithms that build model structure from scratch on a per-sample basis and adapt model parameters whenever necessary. This learning paradigm is meaningful once it avoids redesigning and retraining models all along if the system changes. Application examples in classification, function approximation, time-series prediction and control using real and synthetic data illustrate the usefulness of the granular approaches and framework proposed. The behavior of nonstationary data streams with gradual and abrupt regime shifts is also analyzed in the realm of evolving granular computing. We shed light upon the role of interval, fuzzy, and neurofuzzy computing in processing uncertain data and providing high-quality approximate solutions and rule summary of input-output data sets. The approaches and framework introduced constitute a natural extension of evolving intelligent systems over numeric data streams to evolving granular systems over granular data streamsDoutoradoAutomaçãoDoutor em Engenharia Elétric

Uncertainty Management of Intelligent Feature Selection in Wireless Sensor Networks

Wireless sensor networks (WSN) are envisioned to revolutionize the paradigm of monitoring complex real-world systems at a very high resolution. However, the deployment of a large number of unattended sensor nodes in hostile environments, frequent changes of environment dynamics, and severe resource constraints pose uncertainties and limit the potential use of WSN in complex real-world applications. Although uncertainty management in Artificial Intelligence (AI) is well developed and well investigated, its implications in wireless sensor environments are inadequately addressed. This dissertation addresses uncertainty management issues of spatio-temporal patterns generated from sensor data. It provides a framework for characterizing spatio-temporal pattern in WSN. Using rough set theory and temporal reasoning a novel formalism has been developed to characterize and quantify the uncertainties in predicting spatio-temporal patterns from sensor data. This research also uncovers the trade-off among the uncertainty measures, which can be used to develop a multi-objective optimization model for real-time decision making in sensor data aggregation and samplin

The Encyclopedia of Neutrosophic Researchers - vol. 3

This is the third volume of the Encyclopedia of Neutrosophic Researchers, edited from materials offered by the authors who responded to the editor’s invitation. The authors are listed alphabetically. The introduction contains a short history of neutrosophics, together with links to the main papers and books. Neutrosophic set, neutrosophic logic, neutrosophic probability, neutrosophic statistics, neutrosophic measure, neutrosophic precalculus, neutrosophic calculus and so on are gaining significant attention in solving many real life problems that involve uncertainty, impreciseness, vagueness, incompleteness, inconsistent, and indeterminacy. In the past years the fields of neutrosophics have been extended and applied in various fields, such as: artificial intelligence, data mining, soft computing, decision making in incomplete / indeterminate / inconsistent information systems, image processing, computational modelling, robotics, medical diagnosis, biomedical engineering, investment problems, economic forecasting, social science, humanistic and practical achievements

Advances in Meta-Heuristic Optimization Algorithms in Big Data Text Clustering

This paper presents a comprehensive survey of the meta-heuristic optimization algorithms on the text clustering applications and highlights its main procedures. These Artificial Intelligence (AI) algorithms are recognized as promising swarm intelligence methods due to their successful ability to solve machine learning problems, especially text clustering problems. This paper reviews all of the relevant literature on meta-heuristic-based text clustering applications, including many variants, such as basic, modified, hybridized, and multi-objective methods. As well, the main procedures of text clustering and critical discussions are given. Hence, this review reports its advantages and disadvantages and recommends potential future research paths. The main keywords that have been considered in this paper are text, clustering, meta-heuristic, optimization, and algorithm