Stock price prediction based on stock price synchronicity and deep learning

Deep learning technology has been widely used in the financial industry, primarily for improving financial time series prediction based on stock prices. To solve the problem of low fitting and poor accuracy in traditional stock price prediction models, this paper proposes a stock price prediction model based on stock price synchronicity and deep learning methods, which applied the stock price synchronicity theory in stock price trend analysis. This paper first uses the affinity propagation algorithm to build stock clusters, and then, based on convolution neural network (CNN), and feature weight to construct the stock price synchronicity factor. At last, the long short-term memory (LSTM) network with multifactor is built for stock price trend analysis. According to the theory of stock price synchronicity, the affinity propagation algorithm can find the potential related stocks of the target stock. The spatial data analysis ability of the CNN model provides a guarantee for the application in stock price synchronicity factor analysis. The LSTM model can better analyze the information contained in the stock price time series and predict the future price. The experimental results show that, compared with the traditional multilayer neural network model, the LSTM model has better accuracy in the trend prediction of the stock price. Simultaneously, the application of stock price synchronicity effectively improves the performance of the multifactor LSTM network.

An Improved Integrated Clustering Learning Strategy Based on Three-Stage Affinity Propagation Algorithm with Density Peak Optimization Theory

To better reflect the precise clustering results of the data samples with different shapes and densities for affinity propagation clustering algorithm (AP), an improved integrated clustering learning strategy based on three-stage affinity propagation algorithm with density peak optimization theory (DPKT-AP) was proposed in this paper. DPKT-AP combined the ideology of integrated clustering with the AP algorithm, by introducing the density peak theory and k-means algorithm to carry on the three-stage clustering process. In the first stage, the clustering center point was selected by density peak clustering. Because the clustering center was surrounded by the nearest neighbor point with lower local density and had a relatively large distance from other points with higher density, it could help the k-means algorithm in the second stage avoiding the local optimal situation. In the second stage, the k-means algorithm was used to cluster the data samples to form several relatively small spherical subgroups, and each of subgroups had a local density maximum point, which is called the center point of the subgroup. In the third stage, DPKT-AP used the AP algorithm to merge and cluster the spherical subgroups. Experiments on UCI data sets and synthetic data sets showed that DPKT-AP improved the clustering performance and accuracy for the algorithm.

Quantifying Topological Flexibility of Active Distribution Networks Based on Community Detection

Active distribution networks (ADNs) provide a flexible platform to integrate various distributed generation sources, among which the intermittent renewable sources impose high operating uncertainty. Topological flexibility of ADNs should be exploited to counter the stochastic operating conditions by modifying the topologies of ADNs. Quantifying the topological flexibility is a vital step to utilize it, which is lacking in previous studies. A quantification method is proposed to measure the topological flexibility of ADNs in this paper. First, the community structures of ADNs are detected to achieve spatial partitions of the networks. Second, an improved spectral clustering algorithm is employed to significantly reduce the dimensionality of the partition space, in which the ADNs are further partitioned using the affinity propagation algorithm. Finally, a topological flexibility metric is defined based on the guiding role of sectionalizing and tie switches within and between communities. The proposed topological flexibility quantification method is a superb approach to the utilization of flexibility resources in distribution networks. Case study results of test ADNs demonstrate the effectiveness and efficiency of the proposed quantification method.

A Scalable Approach for Short-Term Predictions of Link Traffic Flow by Online Association of Clustering Profiles

Short-term prediction of traffic flows is an important topic for any traffic management control room. The large availability of real-time data raises not only the expectations for high accuracy of the forecast methodology, but also the requirements for fast computing performances. The proposed approach is based on a real-time association of the latest data received from a sensor to the representative daily profile of one among the clusters that are built offline based on an historical data set using Affinity Propagation algorithm. High scalability is achieved ignoring spatial correlations among different sensors, and for each of them an independent model is built-up. Therefore, each sensor has its own clusters of profiles with their representatives; during the short-term forecast operation the most similar representative is selected by looking at the last data received in a specified time window and the proposed forecast corresponds to the values of the cluster representative.

Effective User Preference Clustering in Web Service Applications

The research on personalized recommendation of Web services plays an important role in the field of Web services technology applications. Fortunately, not all users have completely different service preferences. Due to the same application scenarios and personal interests, some users have the same preferences for certain types of Web services. This paper explores the problem of user clustering in the service environment, grouping users according to their service preferences. It helps service providers to identify and characterize the preferences of similar users and provide them with customized services. We propose two combination-based clustering algorithms which make full use of the advantages of the K-means algorithm and the affinity propagation algorithm. In addition, a three-stage clustering process is elaborated to improve the accuracy of user clustering. To reduce the time complexity of the algorithms, we create a parallel execution model of the algorithms implemented by a higher-order MapReduce sequence linking technology. Extensive experiments on simulated datasets and real datasets are performed on the comparisons between the proposed algorithms and the other combination-based clustering algorithms. The experimental results substantiate that the proposed algorithms can effectively distinguish user group with different preferences.

A New Decomposition Method for Designing Microservices

Many companies are migrating from monolithic architectures to microservice architectures, and they need to decompose their applications in order to create a microservices application. Therefore, the need comes for an approach that helps software architects in the decomposition process. This paper presents a new approach for decomposing monolithic application to a microservices application through analyzing the application programming interface. Our proposed decomposition methodology uses word embedding models to obtain word representations using operation names, as well as, using a hierarchical clustering algorithm to group similar operation names together in order to get suitable microservices. Also, using grid search method to find the optimal parameter values for Affinity Propagation algorithm, which was used for clustering, as well as using silhouette coefficient score to compare the performance of the clustering parameters. The decomposition approach that was introduced in this research consists of the OpenAPI specifications as an input, then extracts the operation names from the specifications and converts them into average word embedding using fastText model. Lastly the decomposition approach is grouping these operation names using Affinity Propagation algorithm. The proposed methodology presented promising results with a precision of 0.84, recall of 0.78 and F-Measure of 0.81.