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Original scientific article

OPTIMISING FINANCIAL FORECASTING: THE POWER OF REDUCTION APPROACH

By
M. Sravan Kumar Reddy Orcid logo ,
M. Sravan Kumar Reddy

Rajeev Gandhi; Memorial College of Engineering and Technology , Andhra Pradesh , India

C. Supraja Orcid logo
C. Supraja

Rajeev Gandhi Memorial College of Engineering and Technology , Andhra Pradesh , India

Abstract

Given the complexity and multifaceted nature of the financial markets, effective aggregation of financial time series data underscores the optimization of predictive modeling in the finance industry. This research presents an innovative approach to clustering using auto encoders designed to distill informative representations out of S&P 500 financial time series data. Our particular methodology is horizontal (stock averages) and vertical (1-hour intraday frequency) dual-dimensional, which enables us to capture temporal patterns along with contextual richness. Comparative research demonstrates auto encoder-driven clustering enhances data quality and granularity, providing actionable understanding of market behavior. These implications applied to predictive modeling would also be considered under risk management, incipient investment strategies, or just pure advanced financial analyses.

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Citation

This is an open access article distributed under the  Creative Commons Attribution Non-Commercial License (CC BY-NC) License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. 

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