Soft computing techniques applied to finance

Soft computing is progressively gaining presence in the financial world. The number of real and potential applications is very large and, accordingly, so is the presence of applied research papers in the literature. The aim of this paper is both to present relevant application areas, and to serve as an introduction to the subject. This paper provides arguments that justify the growing interest in these techniques among the financial community and introduces domains of application such as stock and currency market prediction, trading, portfolio management, credit scoring or financial distress prediction areas.Publicad

An empirical analysis of Brazilian courts law documents using learning techniques

This paper describes a survey on investigating judicial data to find patterns and relations between crime attributes and corresponding decisions made by courts, aiming to find import directions that interpretation of the law might be taking. We have developed an initial methodology and experimentation to look for behaviour patterns to build judicial sentences in the scope of Brazilian criminal courts and achieved results related to important trends in decision making. Neural networks-based techniques were applied for classification and pattern recognition, based on Multi-Layer Perceptron and Radial-basis Functions, associated with data organisation techniques and behavioral modalities extractio

Optimization of Software Project Risk Assessment Using Neuro-Fuzzy Techniques

Hazard evaluation assumes a pivotal part in the product venture administration. The discriminating examination of distinctive danger evaluation techniques help specialists and professionals to assess the effect of different venture related dangers. The existing Fuzzy Expert Cost Constructive Model(Fuzzy ExCOM) model is a combination of fuzzy technique and Expert COCOMO. It takes help of mastery and data from prior exercises conveyed for expense and exertion estimation. However, it has limitations that it can't make space for backing from other noteworthy rules related to risks. The proposed work examinations the effect of the ANN technique for software project risk assessment. It serves to create danger standards utilizing Artificial Neural Network techniques to enhance the exactness of danger evaluation process. The combination of various optimization algorithm like Genetic Algorithms and Particle Swarm Optimization are applied collaboratively with Neural network to get best initial starting solution for Neural Network. The results show that this strategy with accessible task information and Neuro-Fuzzy Risk assessment technique provides enhanced outputs than existing Fuzzy Ex-com technique

Microgeneration of Wind Energy for Micro and Small Businesses: Application of ANN in Sensitivity Analysis for Stochastic Economic Feasibility

To reduce the risks of a new energy crisis and increase energy availability, the use of renewable energy sources (RES) is important and recommended. In Brazil, micro and small companies contribute about 25% of gross domestic product (GDP), and electric energy is employed intensively, so the importance of microgeneration is observable. This research aims to analyze the economic viability of the micro-generation wind energy project for micro and small businesses. Thus, three Brazilian states, Rio Grande do Norte, Rio Grande do Sul and Minas Gerais were considered, and different scenarios were proposed. A feasibility analysis is then performed, followed by a stochastic analysis using Monte Carlo simulation (MCS). Finally, models of artificial neural networks (ANN) are used to evaluate the relative importance (RI) of the variables. The results show that none of the states appears economically feasible under the conditions presented. In the stochastic analysis, the probability of viability is between 17% and 24% in all states, which shows the low probability of viability for microgeneration. Through ANN training, it was possible to calculate the RI, in which it is possible to identify the variables that have most impact on the net present value (NPV) in all states; it is considered the most important variable in the project's viability. In addition, the discussion explores the importance of public incentives for promoting investment in renewable energy, which can reduce investment costs and make it attractive to small and medium-sized businesses

Algorithms & Fiduciaries: Existing and Proposed Regulatory Approaches to Artificially Intelligent Financial Planners

Artificial intelligence is no longer solely in the realm of science fiction. Today, basic forms of machine learning algorithms are commonly used by a variety of companies. Also, advanced forms of machine learning are increasingly making their way into the consumer sphere and promise to optimize existing markets. For financial advising, machine learning algorithms promise to make advice available 24–7 and significantly reduce costs, thereby opening the market for financial advice to lower-income individuals. However, the use of machine learning algorithms also raises concerns. Among them, whether these machine learning algorithms can meet the existing fiduciary standard imposed on human financial advisers and how responsibility and liability should be partitioned when an autonomous algorithm falls short of the fiduciary standard and harms a client. After summarizing the applicable law regulating investment advisers and the current state of robo-advising, this Note evaluates whether robo-advisers can meet the fiduciary standard and proposes alternate liability schemes for dealing with increasingly sophisticated machine learning algorithms

Artificial Intelligence for the Financial Services Industry: What Challenges Organizations to Succeed?

As a research field, artificial intelligence (AI) exists for several years. More recently, technological breakthroughs, coupled with the fast availability of data, have brought AI closer to commercial use. Internet giants such as Google, Amazon, Apple or Facebook invest significantly into AI, thereby underlining its relevance for business models worldwide. For the highly data driven finance industry, AI is of intensive interest within pilot projects, still, few AI applications have been implemented so far. This study analyzes drivers and inhibitors of a successful AI application in the finance industry based on panel data comprising 22 semi-structured interviews with experts in AI in finance. As theoretical lens, we structured our results using the TOE framework. Guidelines for applying AI successfully reveal AI-specific role models and process competencies as crucial, before trained algorithms will have reached a quality level on which AI applications will operate without human intervention and moral concerns

A three-stage optimization methodology for envelope design of passive house considering energy demand, thermal comfort and cost

Due to reducing the reliance of buildings on fossil fuels, Passive House (PH) is receiving more and more attention. It is important that integrated optimization of passive performance by considering energy demand, cost and thermal comfort. This paper proposed a set three-stage multi-objective optimization method that combines redundancy analysis (RDA), Gradient Boosted Decision Trees (GBDT) and Non-dominated sorting genetic algorithm (NSGA-II) for PH design. The method has strong engineering applicability, by reducing the model complexity and improving efficiency. Among then, the GBDT algorithm was first applied to the passive performance optimization of buildings, which is used to build meta-models of building performance. Compared with the commonly used meta-model, the proposed models demonstrate superior robustness with the standard deviation at 0.048. The optimization results show that the energy-saving rate is about 88.2% and the improvement of thermal comfort is about 37.8% as compared to the base-case building. The economic analysis, the payback period were used to integrate initial investment and operating costs, the minimum payback period and uncomfortable level of Pareto frontier solution are 0.48 years and 13.1%, respectively. This study provides the architects rich and valuable information about the effects of the parameters on the different building performance

14th Conference on DATA ANALYSIS METHODS for Software Systems

DAMSS-2023 is the 14th International Conference on Data Analysis Methods for Software Systems, held in Druskininkai, Lithuania. Every year at the same venue and time. The exception was in 2020, when the world was gripped by the Covid-19 pandemic and the movement of people was severely restricted. After a year’s break, the conference was back on track, and the next conference was successful in achieving its primary goal of lively scientific communication. The conference focuses on live interaction among participants. For better efficiency of communication among participants, most of the presentations are poster presentations. This format has proven to be highly effective. However, we have several oral sections, too. The history of the conference dates back to 2009 when 16 papers were presented. It began as a workshop and has evolved into a well-known conference. The idea of such a workshop originated at the Institute of Mathematics and Informatics, now the Institute of Data Science and Digital Technologies of Vilnius University. The Lithuanian Academy of Sciences and the Lithuanian Computer Society supported this idea, which gained enthusiastic acceptance from both the Lithuanian and international scientific communities. This year’s conference features 84 presentations, with 137 registered participants from 11 countries. The conference serves as a gathering point for researchers from six Lithuanian universities, making it the main annual meeting for Lithuanian computer scientists. The primary aim of the conference is to showcase research conducted at Lithuanian and foreign universities in the fields of data science and software engineering. The annual organization of the conference facilitates the rapid exchange of new ideas within the scientific community. Seven IT companies supported the conference this year, indicating the relevance of the conference topics to the business sector. In addition, the conference is supported by the Lithuanian Research Council and the National Science and Technology Council (Taiwan, R. O. C.). The conference covers a wide range of topics, including Applied Mathematics, Artificial Intelligence, Big Data, Bioinformatics, Blockchain Technologies, Business Rules, Software Engineering, Cybersecurity, Data Science, Deep Learning, High-Performance Computing, Data Visualization, Machine Learning, Medical Informatics, Modelling Educational Data, Ontological Engineering, Optimization, Quantum Computing, Signal Processing. This book provides an overview of all presentations from the DAMSS-2023 conference