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Record W7117372915 · doi:10.54097/xcdv2r97

Framework for Forecasting and Timing Rare Equity Events

2025· article· W7117372915 on OpenAlexaff
Yanfeng Hou

Bibliographic record

VenueHighlights in Business Economics and Management · 2025
Typearticle
Language
FieldDecision Sciences
TopicStock Market Forecasting Methods
Canadian institutionsUniversity of Waterloo
Fundersnot available
KeywordsEquity (law)Financial marketSupport vector machineRisk managementRare eventsPipeline (software)Feature (linguistics)Nonlinear system

Abstract

fetched live from OpenAlex

Predicting rare events in financial markets is a major challenge, and the traditional models of predicting extreme price Features haven't worked well for drastic price changes. The study presents a novel model for timing and forecasting unusual equity returns, particularly a 30% rise in ten trading days. Additionally, the methodology employs a two-stage pipeline that combines an advanced machine learning classification algorithm or model, such as Gradient-Boosting, Random Forest, or Support Vector Machine, with a Generalized Additive Model (GAM) to interpret nonlinear feature extraction. The most challenging issues in financial prediction are also taken into account by the framework, such as class imbalance using unique prediction metrics like PR-AUC (Area Under the Percision-Recall Curve) and Precision at K and dynamic risk control using quantile-based take-profit and stop-loss strategies. With a PR-AUC of 0.72—much higher than that of conventional techniques—the analysis shows that XGBoost produces better results. By providing a solid, logical framework for forecasting infrequent occurrences in erratic markets, the study advances our understanding and has applications for algorithmic trading patterns and risk management instruments.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.006
metaresearch head score (Gemma)0.002
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMeta-epidemiology (narrow)
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: Theoretical or conceptual
GenreCandidate signal: Methods · Consensus signal: Methods
Teacher disagreement score0.381
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0060.002
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0010.000
Bibliometrics0.0010.001
Science and technology studies0.0010.000
Scholarly communication0.0010.001
Open science0.0010.003
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.154
GPT teacher head0.392
Teacher spread0.238 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

Study designTheoretical or conceptual
Domainnot available
GenreMethods

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2025
Admission routes1
Has abstractyes

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