scholarly journals Completing the Market

2019 ◽  
Vol 19 (292) ◽  
Author(s):  
Nan Hu ◽  
Jian Li ◽  
Alexis Meyer-Cirkel
Keyword(s):  
Machine Learning ◽  
Credit Risk ◽  
Prediction Accuracy ◽  
Ensemble Methods ◽  
Predictive Performance ◽  
Gradient Boosting ◽  
Learning Methods ◽  
Machine Learning Methods ◽  
Ensemble Machine Learning ◽  
Out Of Sample Prediction

We compared the predictive performance of a series of machine learning and traditional methods for monthly CDS spreads, using firms’ accounting-based, market-based and macroeconomics variables for a time period of 2006 to 2016. We find that ensemble machine learning methods (Bagging, Gradient Boosting and Random Forest) strongly outperform other estimators, and Bagging particularly stands out in terms of accuracy. Traditional credit risk models using OLS techniques have the lowest out-of-sample prediction accuracy. The results suggest that the non-linear machine learning methods, especially the ensemble methods, add considerable value to existent credit risk prediction accuracy and enable CDS shadow pricing for companies missing those securities.

scholarly journals Machine-learning based prediction of Cushing’s syndrome in dogs attending UK primary-care veterinary practice

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Imogen Schofield ◽  
David C. Brodbelt ◽  
Noel Kennedy ◽  
Stijn J. M. Niessen ◽  
David B. Church ◽  
...  
Keyword(s):  
Machine Learning ◽  
Cushing’S Syndrome ◽  
Clinical Decision Making ◽  
Predictive Performance ◽  
Clinical Decision ◽  
Cushing's Syndrome ◽  
Machine Learning Algorithms ◽  
Learning Methods ◽  
Machine Learning Methods ◽  
Clinical Records

AbstractCushing’s syndrome is an endocrine disease in dogs that negatively impacts upon the quality-of-life of affected animals. Cushing’s syndrome can be a challenging diagnosis to confirm, therefore new methods to aid diagnosis are warranted. Four machine-learning algorithms were applied to predict a future diagnosis of Cushing's syndrome, using structured clinical data from the VetCompass programme in the UK. Dogs suspected of having Cushing's syndrome were included in the analysis and classified based on their final reported diagnosis within their clinical records. Demographic and clinical features available at the point of first suspicion by the attending veterinarian were included within the models. The machine-learning methods were able to classify the recorded Cushing’s syndrome diagnoses, with good predictive performance. The LASSO penalised regression model indicated the best overall performance when applied to the test set with an AUROC = 0.85 (95% CI 0.80–0.89), sensitivity = 0.71, specificity = 0.82, PPV = 0.75 and NPV = 0.78. The findings of our study indicate that machine-learning methods could predict the future diagnosis of a practicing veterinarian. New approaches using these methods could support clinical decision-making and contribute to improved diagnosis of Cushing’s syndrome in dogs.

scholarly journals Comparison of Ensemble Machine Learning Methods for Soil Erosion Pin Measurements

2021 ◽  
Vol 10 (1) ◽  
pp. 42
Author(s):  
Kieu Anh Nguyen ◽  
Walter Chen ◽  
Bor-Shiun Lin ◽  
Uma Seeboonruang
Keyword(s):  
Machine Learning ◽  
Soil Erosion ◽  
Ensemble Methods ◽  
Machine Learning Algorithms ◽  
Multivariate Adaptive Regression Splines ◽  
Gradient Boosting ◽  
Support Vector ◽  
Ensemble Machine Learning ◽  
Boosting Method ◽  
Bagging Method

Although machine learning has been extensively used in various fields, it has only recently been applied to soil erosion pin modeling. To improve upon previous methods of quantifying soil erosion based on erosion pin measurements, this study explored the possible application of ensemble machine learning algorithms to the Shihmen Reservoir watershed in northern Taiwan. Three categories of ensemble methods were considered in this study: (a) Bagging, (b) boosting, and (c) stacking. The bagging method in this study refers to bagged multivariate adaptive regression splines (bagged MARS) and random forest (RF), and the boosting method includes Cubist and gradient boosting machine (GBM). Finally, the stacking method is an ensemble method that uses a meta-model to combine the predictions of base models. This study used RF and GBM as the meta-models, decision tree, linear regression, artificial neural network, and support vector machine as the base models. The dataset used in this study was sampled using stratified random sampling to achieve a 70/30 split for the training and test data, and the process was repeated three times. The performance of six ensemble methods in three categories was analyzed based on the average of three attempts. It was found that GBM performed the best among the ensemble models with the lowest root-mean-square error (RMSE = 1.72 mm/year), the highest Nash-Sutcliffe efficiency (NSE = 0.54), and the highest index of agreement (d = 0.81). This result was confirmed by the spatial comparison of the absolute differences (errors) between model predictions and observations using GBM and RF in the study area. In summary, the results show that as a group, the bagging method and the boosting method performed equally well, and the stacking method was third for the erosion pin dataset considered in this study.

scholarly journals MODIS-FIRMS and ground-truthing based wildfire likelihood mapping of Sikkim Himalaya using machine learning algorithms.

2021 ◽  
Author(s):  
Polash Banerjee
Keyword(s):  
Machine Learning ◽  
Machine Learning Algorithms ◽  
Tree Cover ◽  
Anthropogenic Factors ◽  
Gradient Boosting ◽  
Support Vector ◽  
Learning Methods ◽  
Sikkim Himalaya ◽  
Environmental Features ◽  
Machine Learning Methods

Abstract Wildfires in limited extent and intensity can be a boon for the forest ecosystem. However, recent episodes of wildfires of 2019 in Australia and Brazil are sad reminders of their heavy ecological and economical costs. Understanding the role of environmental factors in the likelihood of wildfires in a spatial context would be instrumental in mitigating it. In this study, 14 environmental features encompassing meteorological, topographical, ecological, in situ and anthropogenic factors have been considered for preparing the wildfire likelihood map of Sikkim Himalaya. A comparative study on the efficiency of machine learning methods like Generalized Linear Model (GLM), Support Vector Machine (SVM), Random Forest (RF) and Gradient Boosting Model (GBM) has been performed to identify the best performing algorithm in wildfire prediction. The study indicates that all the machine learning methods are good at predicting wildfires. However, RF has outperformed, followed by GBM in the prediction. Also, environmental features like average temperature, average wind speed, proximity to roadways and tree cover percentage are the most important determinants of wildfires in Sikkim Himalaya. This study can be considered as a decision support tool for preparedness, efficient resource allocation and sensitization of people towards mitigation of wildfires in Sikkim.

Short- and Medium-range Prediction of Relativistic Electron Flux in the Earth’s Outer Radiation Belt by Machine Learning Methods

2021 ◽  
Vol 3 ◽  
pp. 47-57
Author(s):  
I. N. Myagkova ◽  
◽  
V. R. Shirokii ◽  
Yu. S. Shugai ◽  
O. G. Barinov ◽  
...  
Keyword(s):  
Machine Learning ◽  
Radiation Belt ◽  
Gradient Boosting ◽  
Relativistic Electrons ◽  
Learning Methods ◽  
Outer Radiation Belt ◽  
Machine Learning Methods ◽  
The Earth ◽  
Skill Scores ◽  
Medium Range

The ways are studied to improve the quality of prediction of the time series of hourly mean fluxes and daily total fluxes (fluences) of relativistic electrons in the outer radiation belt of the Earth 1 to 24 hours ahead and 1 to 4 days ahead, respectively. The prediction uses an approximation approach based on various machine learning methods, namely, artificial neural networks (ANNs), decision tree (random forest), and gradient boosting. A comparison of the skill scores of short-range forecasts with the lead time of 1 to 24 hours showed that the best results were demonstrated by ANNs. For medium-range forecasting, the accuracy of prediction of the fluences of relativistic electrons in the Earth’s outer radiation belt three to four days ahead increases significantly when the predicted values of the solar wind velocity near the Earth obtained from the UV images of the Sun of the AIA (Atmospheric Imaging Assembly) instrument of the SDO (Solar Dynamics Observatory) are included to the list of the input parameters.

Estimation Procedures of Using Five Alternative Machine Learning Methods for Predicting Credit Card Default

2019 ◽  
Vol 22 (03) ◽  
pp. 1950021 ◽  
Author(s):  
Huei-Wen Teng ◽  
Michael Lee
Keyword(s):  
Machine Learning ◽  
Risk Management ◽  
Credit Risk ◽  
Portfolio Management ◽  
Credit Card ◽  
Nearest Neighbors ◽  
Support Vector ◽  
Credit Risk Management ◽  
Learning Methods ◽  
Machine Learning Methods

Machine learning has successful applications in credit risk management, portfolio management, automatic trading, and fraud detection, to name a few, in the domain of finance technology. Reformulating and solving these topics adequately and accurately is problem specific and challenging along with the availability of complex and voluminous data. In credit risk management, one major problem is to predict the default of credit card holders using real dataset. We review five machine learning methods: the [Formula: see text]-nearest neighbors decision trees, boosting, support vector machine, and neural networks, and apply them to the above problem. In addition, we give explicit Python scripts to conduct analysis using a dataset of 29,999 instances with 23 features collected from a major bank in Taiwan, downloadable in the UC Irvine Machine Learning Repository. We show that the decision tree performs best among others in terms of validation curves.

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