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Deep Learning in Finance

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arxiv 1602.06561 v3 pith:KBU6QA6I submitted 2016-02-21 cs.LG

classification cs.LG
keywords deeplearningdatafinancialproblemscurrentlyeconomicfinance
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We explore the use of deep learning hierarchical models for problems in financial prediction and classification. Financial prediction problems -- such as those presented in designing and pricing securities, constructing portfolios, and risk management -- often involve large data sets with complex data interactions that currently are difficult or impossible to specify in a full economic model. Applying deep learning methods to these problems can produce more useful results than standard methods in finance. In particular, deep learning can detect and exploit interactions in the data that are, at least currently, invisible to any existing financial economic theory.

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Cited by 2 Pith papers

Reviewed papers in the Pith corpus that reference this work. Sorted by Pith novelty score. Full citation record

  1. Integration of Wavelet Transform Convolution and Channel Attention with LSTM for Stock Price Prediction based Portfolio Allocation

    q-fin.ST 2025-06 conditional novelty 4.0 of 10

    A wavelet-convolution channel-attention LSTM model improves one-step-ahead stock price prediction and long-short portfolio backtests on four large-cap US stocks, with reported Sharpe ratios above 1.8.

  2. Multilayer Perceptron Neural Network Models in Asset Pricing: An Empirical Study on Large-Cap US Stocks

    q-fin.PR 2025-05 conditional novelty 4.0 of 10

    MLP models with two hidden layers outperform deeper networks and traditional linear benchmarks for pricing large-cap US stocks with portfolio factors.

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