Hurst exponent, fractals and neural networks for forecasting financial asset returns in Brazil

dc.creatorJoão Nunes de Mendonça Neto
dc.creatorLuiz Paulo Lopes Fávero
dc.creatorRenata Turola Takamatsu
dc.date.accessioned2024-02-09T12:54:47Z
dc.date.accessioned2025-09-08T23:59:48Z
dc.date.available2024-02-09T12:54:47Z
dc.date.issued2018
dc.identifier.doi10.1504/IJDS.2018.090625
dc.identifier.issn2053082X
dc.identifier.urihttps://hdl.handle.net/1843/63914
dc.languageeng
dc.publisherUniversidade Federal de Minas Gerais
dc.relation.ispartofInternational Journal of Data Science
dc.rightsAcesso Restrito
dc.subjectAdministração financeira
dc.subjectFinanças
dc.subject.otherHurst exponent
dc.subject.otherFractals
dc.subject.otherANNs
dc.subject.otherArtificial neural networks
dc.subject.otherTime series forecasting
dc.subject.otherfinancial assets
dc.titleHurst exponent, fractals and neural networks for forecasting financial asset returns in Brazil
dc.typeArtigo de periódico
local.citation.epage49
local.citation.issue1
local.citation.spage29
local.citation.volume3
local.description.resumoOur scope is to verify the existence of a relationship between long-term memory in fractal time series and the prediction error of financial asset returns obtained by artificial neural networks (ANNs). We expect that the fractal time series with larger memory can achieve predictions with lower error, since the correlation between elements of the series favours the quality of ANN prediction. As a long-term memory measure, the Hurst exponent of each time series was calculated, and the root mean square error (RMSE) produced by ANN in each time series was used to measure the prediction error. Hurst exponent computation was conducted through the rescaled range analysis (R/S) algorithm. The ANN's architecture used time-lagged feedforward neural networks (TLFN), with backpropagation supervised learning process and gradient descent for error minimisation. Brazilian financial assets traded at BM&FBovespa, specifically public companies shares and real estate investment funds were considered.
local.publisher.countryBrasil
local.publisher.departmentFCE - DEPARTAMENTO DE CIÊNCIAS CONTÁBEIS
local.publisher.initialsUFMG
local.url.externahttps://www.inderscience.com/info/inarticle.php?artid=90625

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