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Main Authors: Su, Junwei, Wu, Shan, Li, Jinhui
Format: Preprint
Published: 2024
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Online Access:https://arxiv.org/abs/2401.14199
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author Su, Junwei
Wu, Shan
Li, Jinhui
author_facet Su, Junwei
Wu, Shan
Li, Jinhui
contents In this study, we explore the synergy of deep learning and financial market applications, focusing on pair trading. This market-neutral strategy is integral to quantitative finance and is apt for advanced deep-learning techniques. A pivotal challenge in pair trading is discerning temporal correlations among entities, necessitating the integration of diverse data modalities. Addressing this, we introduce a novel framework, Multi-modal Temporal Relation Graph Learning (MTRGL). MTRGL combines time series data and discrete features into a temporal graph and employs a memory-based temporal graph neural network. This approach reframes temporal correlation identification as a temporal graph link prediction task, which has shown empirical success. Our experiments on real-world datasets confirm the superior performance of MTRGL, emphasizing its promise in refining automated pair trading strategies.
format Preprint
id arxiv_https___arxiv_org_abs_2401_14199
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle MTRGL:Effective Temporal Correlation Discerning through Multi-modal Temporal Relational Graph Learning
Su, Junwei
Wu, Shan
Li, Jinhui
Machine Learning
General Economics
Economics
Trading and Market Microstructure
In this study, we explore the synergy of deep learning and financial market applications, focusing on pair trading. This market-neutral strategy is integral to quantitative finance and is apt for advanced deep-learning techniques. A pivotal challenge in pair trading is discerning temporal correlations among entities, necessitating the integration of diverse data modalities. Addressing this, we introduce a novel framework, Multi-modal Temporal Relation Graph Learning (MTRGL). MTRGL combines time series data and discrete features into a temporal graph and employs a memory-based temporal graph neural network. This approach reframes temporal correlation identification as a temporal graph link prediction task, which has shown empirical success. Our experiments on real-world datasets confirm the superior performance of MTRGL, emphasizing its promise in refining automated pair trading strategies.
title MTRGL:Effective Temporal Correlation Discerning through Multi-modal Temporal Relational Graph Learning
topic Machine Learning
General Economics
Economics
Trading and Market Microstructure
url https://arxiv.org/abs/2401.14199