scholarly journals Bankruptcy prediction using machine learning and an application to the case of the COVID-19 recession

2021 ◽  
Vol 1 (2) ◽  
pp. 180-195
Author(s):  
Aditya Narvekar ◽  
◽  
Debashis Guha ◽  
Keyword(s):  
Machine Learning ◽  
Ensemble Methods ◽  
Bankruptcy Prediction ◽  
Financial Ratios ◽  
Machine Learning Techniques ◽  
Set Covering ◽  
Economic Losses ◽  
Data Set ◽  
Out Of Sample ◽  
High Degree

<abstract> <p>Bankruptcy prediction is an important problem in finance, since successful predictions would allow stakeholders to take early actions to limit their economic losses. In recent years many studies have explored the application of machine learning models to bankruptcy prediction with financial ratios as predictors. This study extends this research by applying machine learning techniques to a quarterly data set covering financial ratios for a large sample of public U.S. firms from 1970–2019. We find that tree-based ensemble methods, especially XGBoost, can achieve a high degree of accuracy in out-of-sample bankruptcy prediction. We next apply our best model, using XGBoost, to the problem of predicting the overall bankruptcy rate in USA in the second half of 2020, after the COVID-19 pandemic had necessitated a lockdown, leading to a deep recession. Our model supports the prediction, made by leading economists, that the rate of bankruptcies will rise substantially in 2020, but it also suggests that this elevated level will not be much higher than 2010.</p> </abstract>

An Autonomous Model to Classify Lathe's Cutting Tools Based on TSFRESH, Self-Organised Direction Aware Data Partitioning Algorithm and Machine Learning Techniques

2020 ◽  
Author(s):  
Thiago E. Fernandes ◽  
Guilherme P. C. de Miranda ◽  
Alexandre F. Dutra ◽  
Matheus A. M. Ferreira ◽  
Matheus P. Antunes ◽  
...  
Keyword(s):  
Machine Learning ◽  
Cutting Tools ◽  
Data Partitioning ◽  
Machine Learning Techniques ◽  
Economic Losses ◽  
Machining Processes ◽  
Data Set ◽  
Learning Techniques ◽  
Machining System ◽  
Partitioning Algorithm

The machining processes are of major importance to industries, due to the factthat these processes take part in the manufacturing of a substantial portion of mechanicalcomponents. Hence, during these processes, operational interruptions and accidents induced by fault occurrence are likely to cause economic losses. Concerning these consequences, real-time monitoring can result in productivity and safety increase along with cost reduction. This paper aims to discuss an autonomous model based on self-organised direction aware data partitioning algorithm and machine learning techniques, including features extraction and selection based on hypothesis tests, to solve the adressed problem. The model proposed in this work was evaluatedusing a data set acquired in a real machining system at the Manufacturing Processes Laboratory of Federal University of Juiz de Fora (UFJF).

Comparative Analysis of Machine Learning Techniques Using Predictive Modeling

2020 ◽  
Vol 13 ◽  
Author(s):  
Ritu Khandelwal ◽  
Hemlata Goyal ◽  
Rajveer Singh Shekhawat
Keyword(s):  
Machine Learning ◽  
Comparative Analysis ◽  
Data Science ◽  
Training Data ◽  
Machine Learning Techniques ◽  
Future Trends ◽  
Data Set ◽  
Learning Stage ◽  
Learning Techniques ◽  
Different Types

Introduction: Machine learning is an intelligent technology that works as a bridge between businesses and data science. With the involvement of data science, the business goal focuses on findings to get valuable insights on available data. The large part of Indian Cinema is Bollywood which is a multi-million dollar industry. This paper attempts to predict whether the upcoming Bollywood Movie would be Blockbuster, Superhit, Hit, Average or Flop. For this Machine Learning techniques (classification and prediction) will be applied. To make classifier or prediction model first step is the learning stage in which we need to give the training data set to train the model by applying some technique or algorithm and after that different rules are generated which helps to make a model and predict future trends in different types of organizations. Methods: All the techniques related to classification and Prediction such as Support Vector Machine(SVM), Random Forest, Decision Tree, Naïve Bayes, Logistic Regression, Adaboost, and KNN will be applied and try to find out efficient and effective results. All these functionalities can be applied with GUI Based workflows available with various categories such as data, Visualize, Model, and Evaluate. Result: To make classifier or prediction model first step is learning stage in which we need to give the training data set to train the model by applying some technique or algorithm and after that different rules are generated which helps to make a model and predict future trends in different types of organizations Conclusion: This paper focuses on Comparative Analysis that would be performed based on different parameters such as Accuracy, Confusion Matrix to identify the best possible model for predicting the movie Success. By using Advertisement Propaganda, they can plan for the best time to release the movie according to the predicted success rate to gain higher benefits. Discussion: Data Mining is the process of discovering different patterns from large data sets and from that various relationships are also discovered to solve various problems that come in business and helps to predict the forthcoming trends. This Prediction can help Production Houses for Advertisement Propaganda and also they can plan their costs and by assuring these factors they can make the movie more profitable.

scholarly journals Machine Learning in Futures Markets

2021 ◽  
Vol 14 (3) ◽  
pp. 119
Author(s):  
Fabian Waldow ◽  
Matthias Schnaubelt ◽  
Christopher Krauss ◽  
Thomas Günter Fischer
Keyword(s):  
Machine Learning ◽  
Futures Markets ◽  
Learning Models ◽  
Cross Sectional ◽  
Data Set ◽  
Statistical Arbitrage ◽  
Out Of Sample ◽  
Sample Testing ◽  
Arbitrage Strategy ◽  
Machine Learning Models

In this paper, we demonstrate how a well-established machine learning-based statistical arbitrage strategy can be successfully transferred from equity to futures markets. First, we preprocess futures time series comprised of front months to render them suitable for our returns-based trading framework and compile a data set comprised of 60 futures covering nearly 10 trading years. Next, we train several machine learning models to predict whether the h-day-ahead return of each future out- or underperforms the corresponding cross-sectional median return. Finally, we enter long/short positions for the top/flop-k futures for a duration of h days and assess the financial performance of the resulting portfolio in an out-of-sample testing period. Thereby, we find the machine learning models to yield statistically significant out-of-sample break-even transaction costs of 6.3 bp—a clear challenge to the semi-strong form of market efficiency. Finally, we discuss sources of profitability and the robustness of our findings.

scholarly journals Leveraging Road Characteristics and Contributor Behaviour for Assessing Road Type Quality in OSM

2021 ◽  
Vol 10 (7) ◽  
pp. 436
Author(s):  
Amerah Alghanim ◽  
Musfira Jilani ◽  
Michela Bertolotto ◽  
Gavin McArdle
Keyword(s):  
Machine Learning ◽  
Spatial Data ◽  
Classification Accuracy ◽  
Supervised Machine Learning ◽  
Machine Learning Techniques ◽  
Data Set ◽  
Semantic Inference ◽  
Road Type ◽  
The Impact

Volunteered Geographic Information (VGI) is often collected by non-expert users. This raises concerns about the quality and veracity of such data. There has been much effort to understand and quantify the quality of VGI. Extrinsic measures which compare VGI to authoritative data sources such as National Mapping Agencies are common but the cost and slow update frequency of such data hinder the task. On the other hand, intrinsic measures which compare the data to heuristics or models built from the VGI data are becoming increasingly popular. Supervised machine learning techniques are particularly suitable for intrinsic measures of quality where they can infer and predict the properties of spatial data. In this article we are interested in assessing the quality of semantic information, such as the road type, associated with data in OpenStreetMap (OSM). We have developed a machine learning approach which utilises new intrinsic input features collected from the VGI dataset. Specifically, using our proposed novel approach we obtained an average classification accuracy of 84.12%. This result outperforms existing techniques on the same semantic inference task. The trustworthiness of the data used for developing and training machine learning models is important. To address this issue we have also developed a new measure for this using direct and indirect characteristics of OSM data such as its edit history along with an assessment of the users who contributed the data. An evaluation of the impact of data determined to be trustworthy within the machine learning model shows that the trusted data collected with the new approach improves the prediction accuracy of our machine learning technique. Specifically, our results demonstrate that the classification accuracy of our developed model is 87.75% when applied to a trusted dataset and 57.98% when applied to an untrusted dataset. Consequently, such results can be used to assess the quality of OSM and suggest improvements to the data set.

Borderline and Depression: A Thin EEG Line

2021 ◽  
pp. 155005942110608
Author(s):  
Jakša Vukojević ◽  
Damir Mulc ◽  
Ivana Kinder ◽  
Eda Jovičić ◽  
Krešimir Friganović ◽  
...  
Keyword(s):  
Machine Learning ◽  
Borderline Personality ◽  
Machine Learning Techniques ◽  
Major Depressive ◽  
Everyday Clinical Practice ◽  
Data Set ◽  
Learning Techniques ◽  
Eeg Recordings ◽  
The Given ◽  
Close Interrelationship

In everyday clinical practice, there is an ongoing debate about the nature of major depressive disorder (MDD) in patients with borderline personality disorder (BPD). The underlying research does not give us a clear distinction between those 2 entities, although depression is among the most frequent comorbid diagnosis in borderline personality patients. The notion that depression can be a distinct disorder but also a symptom in other psychopathologies led our team to try and delineate those 2 entities using 146 EEG recordings and machine learning. The utilized algorithms, developed solely for this purpose, could not differentiate those 2 entities, meaning that patients suffering from MDD did not have significantly different EEG in terms of patients diagnosed with MDD and BPD respecting the given data and methods used. By increasing the data set and the spatiotemporal specificity, one could have a more sensitive diagnostic approach when using EEG recordings. To our knowledge, this is the first study that used EEG recordings and advanced machine learning techniques and further confirmed the close interrelationship between those 2 entities.

Different firm responses to the COVID-19 pandemic shocks: machine-learning evidence on the Vietnamese labor market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lam Hoang Viet Le ◽  
Toan Luu Duc Huynh ◽  
Bryan S. Weber ◽  
Bao Khac Quoc Nguyen
Keyword(s):  
Machine Learning ◽  
Labor Market ◽  
Large Scale ◽  
Government Support ◽  
Policy Implications ◽  
Machine Learning Techniques ◽  
Firm Characteristics ◽  
Data Set ◽  
Content Type ◽  
Firm Responses

PurposeThis paper aims to identify the disproportionate impacts of the COVID-19 pandemic on labor markets.Design/methodology/approachThe authors conduct a large-scale survey on 16,000 firms from 82 industries in Ho Chi Minh City, Vietnam, and analyze the data set by using different machine-learning methods.FindingsFirst, job loss and reduction in state-owned enterprises have been significantly larger than in other types of organizations. Second, employees of foreign direct investment enterprises suffer a significantly lower labor income than those of other groups. Third, the adverse effects of the COVID-19 pandemic on the labor market are heterogeneous across industries and geographies. Finally, firms with high revenue in 2019 are more likely to adopt preventive measures, including the reduction of labor forces. The authors also find a significant correlation between firms' revenue and labor reduction as traditional econometrics and machine-learning techniques suggest.Originality/valueThis study has two main policy implications. First, although government support through taxes has been provided, the authors highlight evidence that there may be some additional benefit from targeting firms that have characteristics associated with layoffs or other negative labor responses. Second, the authors provide information that shows which firm characteristics are associated with particular labor market responses such as layoffs, which may help target stimulus packages. Although the COVID-19 pandemic affects most industries and occupations, heterogeneous firm responses suggest that there could be several varieties of targeted policies-targeting firms that are likely to reduce labor forces or firms likely to face reduced revenue. In this paper, the authors outline several industries and firm characteristics which appear to more directly be reducing employee counts or having negative labor responses which may lead to more cost–effect stimulus.

Synthetic Sonic Log Generation With Machine Learning: A Contest Summary From Five Methods

2021 ◽  
Vol 62 (4) ◽  
pp. 393-406
Author(s):  
Yanxiang Yu ◽  
◽  
Chicheng Xu ◽  
Siddharth Misra ◽  
Weichang Li ◽  
...  
Keyword(s):  
Machine Learning ◽  
Test Data ◽  
Short Term Memory ◽  
Rock Physics ◽  
Training Data ◽  
Machine Learning Techniques ◽  
Blind Test ◽  
Data Set ◽  
Benchmark Model ◽  
Sonic Log

Compressional and shear sonic traveltime logs (DTC and DTS, respectively) are crucial for subsurface characterization and seismic-well tie. However, these two logs are often missing or incomplete in many oil and gas wells. Therefore, many petrophysical and geophysical workflows include sonic log synthetization or pseudo-log generation based on multivariate regression or rock physics relations. Started on March 1, 2020, and concluded on May 7, 2020, the SPWLA PDDA SIG hosted a contest aiming to predict the DTC and DTS logs from seven “easy-to-acquire” conventional logs using machine-learning methods (GitHub, 2020). In the contest, a total number of 20,525 data points with half-foot resolution from three wells was collected to train regression models using machine-learning techniques. Each data point had seven features, consisting of the conventional “easy-to-acquire” logs: caliper, neutron porosity, gamma ray (GR), deep resistivity, medium resistivity, photoelectric factor, and bulk density, respectively, as well as two sonic logs (DTC and DTS) as the target. The separate data set of 11,089 samples from a fourth well was then used as the blind test data set. The prediction performance of the model was evaluated using root mean square error (RMSE) as the metric, shown in the equation below: RMSE=sqrt(1/2*1/m* [∑_(i=1)^m▒〖(〖DTC〗_pred^i-〖DTC〗_true^i)〗^2 + 〖(〖DTS〗_pred^i-〖DTS〗_true^i)〗^2 ] In the benchmark model, (Yu et al., 2020), we used a Random Forest regressor and conducted minimal preprocessing to the training data set; an RMSE score of 17.93 was achieved on the test data set. The top five models from the contest, on average, beat the performance of our benchmark model by 27% in the RMSE score. In the paper, we will review these five solutions, including preprocess techniques and different machine-learning models, including neural network, long short-term memory (LSTM), and ensemble trees. We found that data cleaning and clustering were critical for improving the performance in all models.

A sentiment analysis system for social media using machine learning techniques: Social enablement

2018 ◽  
Vol 34 (3) ◽  
pp. 569-581 ◽  
Author(s):  
Sujata Rani ◽  
Parteek Kumar
Keyword(s):  
Machine Learning ◽  
Social Media ◽  
Sentiment Analysis ◽  
Media Analysis ◽  
Training Data ◽  
Machine Learning Techniques ◽  
Support Vector ◽  
Analysis Tool ◽  
Data Set ◽  
Learning Techniques

Abstract In this article, an innovative approach to perform the sentiment analysis (SA) has been presented. The proposed system handles the issues of Romanized or abbreviated text and spelling variations in the text to perform the sentiment analysis. The training data set of 3,000 movie reviews and tweets has been manually labeled by native speakers of Hindi in three classes, i.e. positive, negative, and neutral. The system uses WEKA (Waikato Environment for Knowledge Analysis) tool to convert these string data into numerical matrices and applies three machine learning techniques, i.e. Naive Bayes (NB), J48, and support vector machine (SVM). The proposed system has been tested on 100 movie reviews and tweets, and it has been observed that SVM has performed best in comparison to other classifiers, and it has an accuracy of 68% for movie reviews and 82% in case of tweets. The results of the proposed system are very promising and can be used in emerging applications like SA of product reviews and social media analysis. Additionally, the proposed system can be used in other cultural/social benefits like predicting/fighting human riots.

scholarly journals Stock Market Prediction Using Machine Learning Techniques: A Decade Survey on Methodologies, Recent Developments, and Future Directions

Electronics ◽  
2021 ◽  
Vol 10 (21) ◽  
pp. 2717
Author(s):  
Nusrat Rouf ◽  
Majid Bashir Malik ◽  
Tasleem Arif ◽  
Sparsh Sharma ◽  
Saurabh Singh ◽  
...  
Keyword(s):  
Machine Learning ◽  
Stock Market ◽  
Digital Libraries ◽  
Stock Price ◽  
Ensemble Methods ◽  
Machine Learning Techniques ◽  
Learning Approaches ◽  
Stock Market Prediction ◽  
Research Areas ◽  
Recent Developments

With the advent of technological marvels like global digitization, the prediction of the stock market has entered a technologically advanced era, revamping the old model of trading. With the ceaseless increase in market capitalization, stock trading has become a center of investment for many financial investors. Many analysts and researchers have developed tools and techniques that predict stock price movements and help investors in proper decision-making. Advanced trading models enable researchers to predict the market using non-traditional textual data from social platforms. The application of advanced machine learning approaches such as text data analytics and ensemble methods have greatly increased the prediction accuracies. Meanwhile, the analysis and prediction of stock markets continue to be one of the most challenging research areas due to dynamic, erratic, and chaotic data. This study explains the systematics of machine learning-based approaches for stock market prediction based on the deployment of a generic framework. Findings from the last decade (2011–2021) were critically analyzed, having been retrieved from online digital libraries and databases like ACM digital library and Scopus. Furthermore, an extensive comparative analysis was carried out to identify the direction of significance. The study would be helpful for emerging researchers to understand the basics and advancements of this emerging area, and thus carry-on further research in promising directions.

scholarly journals Exploiting node metadata to predict interactions in large networks using graph embedding and neural networks

2021 ◽  
Author(s):  
Rogini Runghen ◽  
Daniel B Stouffer ◽  
Giulio Valentino Dalla Riva
Keyword(s):  
Machine Learning ◽  
Neural Networks ◽  
Link Prediction ◽  
Graph Embedding ◽  
Feature Space ◽  
Machine Learning Techniques ◽  
Large Networks ◽  
Data Set ◽  
Learning Techniques ◽  
Low Dimensional

Collecting network interaction data is difficult. Non-exhaustive sampling and complex hidden processes often result in an incomplete data set. Thus, identifying potentially present but unobserved interactions is crucial both in understanding the structure of large scale data, and in predicting how previously unseen elements will interact. Recent studies in network analysis have shown that accounting for metadata (such as node attributes) can improve both our understanding of how nodes interact with one another, and the accuracy of link prediction. However, the dimension of the object we need to learn to predict interactions in a network grows quickly with the number of nodes. Therefore, it becomes computationally and conceptually challenging for large networks. Here, we present a new predictive procedure combining a graph embedding method with machine learning techniques to predict interactions on the base of nodes' metadata. Graph embedding methods project the nodes of a network onto a---low dimensional---latent feature space. The position of the nodes in the latent feature space can then be used to predict interactions between nodes. Learning a mapping of the nodes' metadata to their position in a latent feature space corresponds to a classic---and low dimensional---machine learning problem. In our current study we used the Random Dot Product Graph model to estimate the embedding of an observed network, and we tested different neural networks architectures to predict the position of nodes in the latent feature space. Flexible machine learning techniques to map the nodes onto their latent positions allow to account for multivariate and possibly complex nodes' metadata. To illustrate the utility of the proposed procedure, we apply it to a large dataset of tourist visits to destinations across New Zealand. We found that our procedure accurately predicts interactions for both existing nodes and nodes newly added to the network, while being computationally feasible even for very large networks. Overall, our study highlights that by exploiting the properties of a well understood statistical model for complex networks and combining it with standard machine learning techniques, we can simplify the link prediction problem when incorporating multivariate node metadata. Our procedure can be immediately applied to different types of networks, and to a wide variety of data from different systems. As such, both from a network science and data science perspective, our work offers a flexible and generalisable procedure for link prediction.

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