Buy Crypto Markets Spot FuturesGOLD Earn Event Centre

The findings in this paper confirm the 2008 and COVID-19 crashes as EEs and highlight TDA's potential for future market prediction.The findings in this paper confirm the 2008 and COVID-19 crashes as EEs and highlight TDA's potential for future market prediction.

Future of Finance: TDA and Machine Learning for Market Prediction

Author: Hackernoon

Source: Hackernoon

2025/09/03 12:15

2 min read

For feedback or concerns regarding this content, please contact us at crypto.news@mexc.com

Table of Links

I. Introduction

II. Methodology

III. TDA Approach to analyzing multiple time series

IV. Data Analyzed

V. Results and Discussion

A. Obtaining point cloud from stock price time-series

B. EE due to the 2008 Financial crisis

C. EE due to COVID-19 pandemic

D. Impact of COVID-19 on different Indian sectors

VI. Conclusion

VII. Acknowledgments and References

VI. CONCLUSION

Our study has proven successful in detecting continent-wise and sector-wise extreme events (EEs) in the stock market using Topological Data Analysis (TDA). The 2008 financial crisis and the crash due to the COVID-19 pandemic are identified as EEs in Asia, Europe, North-South America, and Oceania continents. A sector-wise analysis has been carried out during the COVID-19 pandemic. Earlier work has identified the crash due to COVID-19 as an EE taking the stock indices of each country separately proving it to be unsuitable for analyzing continent-wise or sector-wise. However, TDA overcomes this difficulty and we can identify continent-wise & sector-wise EE by analyzing stock prices of n stocks/indices together.

\ Our results are consistent with the empirical mode decomposition-based Hilbert-Huang transform technique used for the identification of EEs by Mahata et al.[10] and Anish et al.[13]. Hence, TDA is capable of identifying EEs in the stock market. In the future, TDA may be applied with machine learning techniques to understand the market dynamics and also may help in the prediction of stock prices.

:::info Authors:

(1) Anish Rai, Department of Physics, National Institute of Technology Sikkim, Sikkim, India-737139;

(2) Buddha Nath Sharma, Department of Physics, National Institute of Technology Sikkim, Sikkim, India-737139;

(3) Salam Rabindrajit Luwang, Department of Physics, National Institute of Technology Sikkim, Sikkim, India-737139;

(4) Md.Nurujjaman, Department of Physics, National Institute of Technology Sikkim, Sikkim, India-737139;

(5) Sushovan Majhi, Data Science Program, George Washington University, USA, 20052.

:::

:::info This paper is available on arxiv under CC BY 4.0 DEED license.

:::

Get 20 USDT in Just 1 Minute

Deposit $100 to unlock $300 in GOLD positions

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact crypto.news@mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.