Transformer for Times Series: an Application to the S&P500

Fuente: arXiv
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Main Authors: Brugiere, Pierre, Turinici, Gabriel
Format: Preprint
Published: 2024
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author Brugiere, Pierre
Turinici, Gabriel
author_facet Brugiere, Pierre
Turinici, Gabriel
contents The transformer models have been extensively used with good results in a wide area of machine learning applications including Large Language Models and image generation. Here, we inquire on the applicability of this approach to financial time series. We first describe the dataset construction for two prototypical situations: a mean reverting synthetic Ornstein-Uhlenbeck process on one hand and real S&P500 data on the other hand. Then, we present in detail the proposed Transformer architecture and finally we discuss some encouraging results. For the synthetic data we predict rather accurately the next move, and for the S&P500 we get some interesting results related to quadratic variation and volatility prediction.
format Preprint
id arxiv_https___arxiv_org_abs_2403_02523
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Transformer for Times Series: an Application to the S&P500
Brugiere, Pierre
Turinici, Gabriel
Artificial Intelligence
Portfolio Management
Statistical Finance
Machine Learning
The transformer models have been extensively used with good results in a wide area of machine learning applications including Large Language Models and image generation. Here, we inquire on the applicability of this approach to financial time series. We first describe the dataset construction for two prototypical situations: a mean reverting synthetic Ornstein-Uhlenbeck process on one hand and real S&P500 data on the other hand. Then, we present in detail the proposed Transformer architecture and finally we discuss some encouraging results. For the synthetic data we predict rather accurately the next move, and for the S&P500 we get some interesting results related to quadratic variation and volatility prediction.
title Transformer for Times Series: an Application to the S&P500
topic Artificial Intelligence
Portfolio Management
Statistical Finance
Machine Learning
url https://arxiv.org/abs/2403.02523