Neural network and interval type-2 fuzzy system for stock price forecasting

Stock price forecast has long been received special attention of investors and financial institutions. As stock prices are changeable over time and increasingly uncertain in modern financial markets, their forecasting becomes more important than ever before. A hybrid approach consisting of two components, a neural network and a fuzzy logic system, is proposed in this paper for stock price prediction. The first component of the hybrid, i.e. a feedforward neural network (FFNN), is used to select inputs that are highly relevant to the dependent variables. An interval type-2 fuzzy logic system (IT2 FLS) is employed as the second component of the hybrid forecasting method. The IT2 FLS’s parameters are initialized through deployment of the k-means clustering method and they are adjusted by the genetic algorithm. Experimental results demonstrate the efficiency of the FFNN input selection approach as it reduces the complexity and increase the accuracy of the forecasting models. In addition, IT2 FLS outperforms the widely used type-1 FLS and FFNN models in stock price forecasting. The combination of the FFNN and the IT2 FLS produces dominant forecasting accuracy compared to employing only the IT2 FLSs without the FFNN input selection.

"Recognition" : Interactive motion tracking installation with neural network agent performer

Public installation running throughout the night at Cube 37 gallery. Morphing forms are projected onto the glass front of the gallery, facing the street. Human perticipants interact with the forms whose morphology changes with the movements of the participants. When no human participants are present, a neural network based agent that has learnt how to dance from a trained dancer, takes over and the forms follow the agent's movement.

Variance-covariance based weighing for neural network ensembles

Neural network (NN) is a popular artificial intelligence technique for solving complicated problems due to their inherent capabilities. However generalization in NN can be harmed by a number of factors including parameter's initialization, inappropriate network topology and setting parameters of the training process itself. Forecast combinations of NN models have the potential for improved generalization and lower training time. A weighted averaging based on Variance-Covariance method that assigns greater weight to the forecasts producing lower error, instead of equal weights is practiced in this paper. While implementing the method, combination of forecasts is done with all candidate models in one experiment and with the best selected models in another experiment. It is observed during the empirical analysis that forecasting accuracy is improved by combining the best individual NN models. Another finding of this study is that reducing the number of NN models increases the diversity and, hence, accuracy.

Transfer learning using the online Fuzzy Min-Max neural network

In this paper, we present an empirical analysis on transfer learning using the Fuzzy Min–Max (FMM) neural network with an online learning strategy. Three transfer learning benchmark data sets, i.e., 20 Newsgroups, WiFi Time, and Botswana, are used for evaluation. In addition, the data samples are corrupted with white Gaussian noise up to 50 %, in order to assess the robustness of the online FMM network in handling noisy transfer learning tasks. The results are analyzed and compared with those from other methods. The outcomes indicate that the online FMM network is effective for undertaking transfer learning tasks in noisy environments.

Short-term load and wind power forecasting using neural network-based prediction intervals

Electrical power systems are evolving from today's centralized bulk systems to more decentralized systems. Penetrations of renewable energies, such as wind and solar power, significantly increase the level of uncertainty in power systems. Accurate load forecasting becomes more complex, yet more important for management of power systems. Traditional methods for generating point forecasts of load demands cannot properly handle uncertainties in system operations. To quantify potential uncertainties associated with forecasts, this paper implements a neural network (NN)-based method for the construction of prediction intervals (PIs). A newly introduced method, called lower upper bound estimation (LUBE), is applied and extended to develop PIs using NN models. A new problem formulation is proposed, which translates the primary multiobjective problem into a constrained single-objective problem. Compared with the cost function, this new formulation is closer to the primary problem and has fewer parameters. Particle swarm optimization (PSO) integrated with the mutation operator is used to solve the problem. Electrical demands from Singapore and New South Wales (Australia), as well as wind power generation from Capital Wind Farm, are used to validate the PSO-based LUBE method. Comparative results show that the proposed method can construct higher quality PIs for load and wind power generation forecasts in a short time.

Construction of neural network-based prediction intervals for short-term electrical load forecasting

Short-term load forecasting (STLF) is of great importance for control and scheduling of electrical power systems. The uncertainty of power systems increases due to the random nature of climate and the penetration of the renewable energies such as wind and solar power. Traditional methods for generating point forecasts of load demands cannot properly handle uncertainties in datasets. To quantify these potential uncertainties associated with forecasts, this paper implements a neural network (NN)-based method for construction of prediction intervals (PIs). A newly proposed method, called lower upper bound estimation (LUBE), is applied to develop PIs using NN models. The primary multi-objective problem is firstly transformed into a constrained single-objective problem. This new problem formulation is closer to the original problem and has fewer parameters than the cost function. Particle swarm optimization (PSO) integrated with the mutation operator is used to solve the problem. Two case studies from Singapore and New South Wales (Australia) historical load datasets are used to validate the PSO-based LUBE method. Demonstrated results show that the proposed method can construct high quality PIs for load forecasting applications.

Three algorithms for learning artificial neural network: A comparison for induction motor flux estimation

This paper presents a comparative study of three algorithms for learning artificial neural network. As neural estimator, back-propagation (BP) algorithm, uncorrelated real time recurrent learning (URTRL) algorithm and correlated real time recurrent learning (CRTRL) algorithm are used in the present work to learn the artificial neural network (ANN). The approach proposed here is based on the flux estimation of high performance induction motor drives. Simulation of the drive system was carried out to study the performance of the motor drive. It is observed that the proposed CRTRL algorithm based methodology provides better performance than the BP and URTRL algorithm based technique. The proposed method can be used for accurate measurement of the rotor flux.

Prediction interval-based neural network modelling of polystyrene polymerization reactor - a new perspective of data-based modelling

In this paper, prediction interval (PI)-based modelling techniques are introduced and applied to capture the nonlinear dynamics of a polystyrene batch reactor system. Traditional NN models are developed using experimental datasets with and without disturbances. Simulation results indicate that traditional NNs cannot properly handle disturbances in reactor data and demonstrate a poor forecasting performance, with an average MAPE of 22% in the presence of disturbances. The lower upper bound estimation (LUBE) method is applied for the construction of PIs to quantify uncertainties associated with forecasts. The simulated annealing optimization technique is employed to adjust NN parameters for minimization of an innovative PI-based cost function. The simulation results reveal that the LUBE method generates quality PIs without requiring prohibitive computations. As both calibration and sharpness of PIs are practically and theoretically satisfactory, the constructed PIs can be used as part of the decision-making and control process of polymerization reactors. © 2014 The Institution of Chemical Engineers.