Proposes a framework to reconcile policy learning and profit maximization in CATE estimation.
problem Aligning CATE estimation with profit maximization for optimal customer treatment decisions.
method Optimizes a novel objective function that concentrates learning capacity near the decision boundary, ensuring consistency with the original profit function.
result Consistent CATE estimates can be recovered from existing profit-maximization pipelines, allowing firms to navigate the trade-off between accuracy and profit.
Study optimal portfolio selection using average and current profitability of risky assets.
problem Continuous-time mean-variance portfolio selection in time-varying financial markets.
method Introduced AP and CP indexes; estimated AP and CP using second-order variation of an auxiliary wealth process.
result Estimations of AP and CP are more accurate than traditional MLE.
Winterization of Texas power system profitable but risky, estimated at $11.74bn over 30 years.
problem Profitability and risk of winterizing Texas power system infrastructure.
method Combined temperature-dependent load and outage estimates over 71 years of climate data.
result Large-scale winterization of gas infrastructure and power plants is profitable, but risks are high due to low-frequency of cold spells.
Study examines downsizing impact on Indian construction firms' profitability.
problem Impact of downsizing layoffs on construction firms' profitability in India.
method Used Co-integration test, OLS, and VAR models on secondary data of 15 companies.
result Employee Expenses and Number of Employees have significant impact on profitability.
The paper analyzes CEX-DEX arbitrage and profitability on Ethereum, revealing centralization trends and market impacts.
problem Ethereum's decentralization and CEX-DEX arbitrages.
method Empirical analysis of 19 months' data from 7.2M CEX-DEX transactions, refining heuristics to identify and estimate arbitrage revenue.
result Three searchers captured three-quarters of volume and extracted value, and profitability is tied to integration with block builders.
Study estimates Medallion's compounded return before fees at 31.8%.
problem Incorrectly using yearly returns for compounding leads to overestimation of fund performance.
method Used fund sizes and trading profits to estimate compounded return; used manager's wealth as proxy for Simons.
result Annualized compounded return of Medallion before fees is likely under 35%
An algorithm was recently introduced by INTECH for the purposes of estimating the trading-profit contribution of systematic rebalancing to the relative return of rules-based investment strategies. We apply this methodology to analyze the size factor through the use of equal-weighted portfolios. These strategies combine…
Extends expected value framework for cost-sensitive causal decision-making.
problem Optimizing operational decision-making with cost-sensitive causal classification.
method Introduces a cost-sensitive decision boundary based on estimated individual treatment effects, positive outcome probability, and cost parameters.
result Effective in maximizing expected causal profit, outperforming cost-insensitive ranking approach.
The study compares profitability of conventional and Islamic banks in Bangladesh.
problem Evaluating profitability of commercial banks in Bangladesh.
method Examined bank-specific, industry-specific, and banking system factors on profitability.
result Islamic banks consistently outperform conventional banks in profitability.
Study uses Open Banking data to estimate customer value, showing potential 21% increase.
problem Limited CLV estimation using single-entity data.
method Introduces PCLV framework using Open Banking data for comprehensive customer value estimation.
result Open Banking data can estimate PCLV per competitor, showing a 21.06% increase over Actual CLV.
Proposes a new method to optimize treatment allocation with budget constraints.
problem Optimizing treatment allocation with budget constraints in marketing.
method Learning to rank for profit maximization.
result Learning to rank can maximize the area under a policy's incremental profit curve.
New scalable method balances hospital profit status and heart attack outcomes.
problem Balancing covariate distributions and minimizing weight dispersion in large datasets.
method Combines kernel basis expansion and convex optimization for efficient and flexible weighting.
result For-profit hospitals use interventional cardiology similarly to other hospitals but have higher mortality and readmission rates.
Novel trading strategy for generalized lattice markets ensures positive profits.
problem Trading in markets with serially correlated returns and asset correlation.
method Multi-double linear policies in a generalized lattice market model.
result Proposed policies ensure positive expected profits in a lattice market.
The profitability of CPMMs is significantly impacted by mint and burn fees.
problem Understanding the profitability of decentralized exchanges.
method Formalized liquidity providers' profitability conditions, studied the effect of mint and burn fees, and compiled a large data set from Uniswap V2 transactions.
result The profitability of liquidity provision is severely affected by mint and burn costs.
Fossil power firms have recently profited more than renewables, but this may be a temporary phenomenon.
problem The profitability gap between renewable and fossil power firms in Europe.
method Machine-learning clustering and Bayesian model averaging.
result Renewable power firms are becoming more profitable, while fossil power firms are becoming less so.
This paper assesses the role of financial performance in explaining firms' investment dynamics in the wine industry from the three European Union (EU) largest producers. The wine sector deserves special attention to investigate firms' investment behavior given the high competition imposed by the latecomers. More precis…
This paper introduces strategies to maximize arbitrage profits in decentralized exchanges.
problem Maximizing profits from arbitrage loops in decentralized exchanges.
method Three strategies: MaxPrice, MaxMax, and Convex Optimization.
result The Convex Optimization strategy yields the highest monetized arbitrage profit in theory and practice.
This paper introduces a Bayesian framework for optimizing online experiments to maximize profit.
problem Statistical flaws and reliance on proxy metrics in A/B tests compromise their effectiveness.
method Hierarchical Bayesian model for estimating conversion probability and monetary value, decision-theoretic stopping rule.
result The framework ensures experiments conclude when no variant offers a significant profit improvement, conserving resources.
New approach uses deep generative models for inventory and pricing decisions.
problem Data-driven inventory and pricing decisions in feature-based newsvendor problems.
method Conditional deep generative models (cDGMs) to learn demand distribution and generate probabilistic forecasts.
result Effective in optimizing inventory and pricing decisions, with theoretical guarantees and real-world applications.
We provide some theoretical extensions and a calibration protocol for our former dynamic optimal execution model. The Hawkes parameters and the propagator are estimated independently on financial data from stocks of the CAC40. Interestingly, the propagator exhibits a smoothly decaying form with one or two dominant time…
Study confirms mispricing in sportsbooks but finds data issues affect results.
problem Mispricing and inefficiency in online sportsbooks.
method Replication using Wikipedia buzz factor metric and backtesting.
result Data quality issues affect betting results; only one strategy remains profitable.
Marxism's rate of profit thesis rejected as illogical.
problem Marxism's rate of profit thesis is challenged as illogical.
method Rejects Marx's thesis on the long-term tendency of the rate of profit to fall.
result Marxism's rate of profit thesis is rejected as illogical.
Hidden Markov model predicts profitable statistical arbitrage in Shanghai crude oil futures.
problem Statistical arbitrage opportunities in international crude oil futures markets.
method Hidden Markov model for cointegration spread, mean-reverting regime-switching process.
result Statistical arbitrage strategies involving Shanghai crude oil futures are profitable.
Equations track profits and losses in trading algorithms.
problem Evaluating the performance of trading algorithms.
method Formal equations incorporating spread.
result Evaluate trading model algorithms' performance.
We analyze annual revenues and earnings data for the 500 largest-revenue U.S. companies during the period 1954-2007. We find that mean year profits are proportional to mean year revenues, exception made for few anomalous years, from which we postulate a linear relation between company expected mean profit and revenue. …
This paper reexamines the profitability of loser, winner and contrarian portfolios in the Chinese stock market using monthly data of all stocks traded on the Shanghai Stock Exchange and Shenzhen Stock Exchange covering the period from January 1997 to December 2012. We find evidence of short-term and long-term contraria…
This paper proposes a two-stage scoring approach to help lenders decide their fund allocations in the peer-to-peer (P2P) lending market. The existing scoring approaches focus on only either probability of default (PD) prediction, known as credit scoring, or profitability prediction, known as profit scoring, to identify…
Study analyzes factors affecting profits in crypto liquidity provision.
problem Liquidity providers lack guidance for developing profitable strategies.
method Developed a measurement model based on impermanent loss to analyze key parameters.
result Uncovered influences of key parameters on LPs' profits.
A new framework integrates credit scoring into profit scoring for better P2P lending investments.
problem Maximizing profit while minimizing risk in P2P lending investments.
method Two-stage framework using Light Gradient Boosting Machine (lightGBM) to integrate credit scoring into profit scoring.
result The proposed framework identifies more profitable loans and provides better investment guidance.
Study shows adding similar investors can either increase or decrease profits, depending on their strategy.
problem Investors argue conflictingly about the impact of adding similar investors on their profits.
method Built an agent-based financial market model with additional agents and investigated their earnings.
result Adding similar fundamental agents stabilizes market prices and decreases profits, while adding similar technical agents makes prices unstable and increases profits.
Study shows environmental spending positively impacts company profitability.
problem Impact of environmental spending on company profitability.
method Panel data regression analysis using E-Views.
result Environmental spending positively impacts profitability metrics.
Expands robust profit opportunities to include distributional uncertainty.
problem Distributional uncertainty in financial markets.
method Formulates infinite dimensional primal problems, simplifies to finite dimensional dual problems using Wasserstein distance.
result Distributional uncertainty can enhance robustness of profit opportunities.
A common assumption of political economy is that profit rates across firms or sectors tend to uniformity, and often models are formulated in which this tendency is assumed to have been realised. But in reality this tendency is never realised and the distribution of firm profits is not degenerate but skewed to the right…
Study increasing profits in a flexible financial market model.
problem Characterize increasing profits in a 1D diffusion market with interest rates.
method Characterize increasing profits using an auxiliary deterministic signed measure and a canonical trading strategy.
result Existence and characterization of increasing profits in terms of ν and θ. Study finds investor sentiment has a significant positive relationship with stock returns in Moroccan and Tunisian markets.
problem Investor sentiment and stock returns relationship in Moroccan and Tunisian markets.
method Used indirect measures of investor sentiment (SENT and ARMS) and Granger causality tests.
result Sentiment has a significant positive relationship with stock returns, but not the other way around.
We investigate the structure of the profit landscape obtained from the most basic, fluctuation based, trading strategy applied for the daily stock price data. The strategy is parameterized by only two variables, p and q. Stocks are sold and bought if the log return is bigger than p and less than -q, respectively. Repet…
We proposed a new Portfolio Management method termed as Robust Log-Optimal Strategy (RLOS), which ameliorates the General Log-Optimal Strategy (GLOS) by approximating the traditional objective function with quadratic Taylor expansion. It avoids GLOS's complex CDF estimation process,hence resists the "Butterfly Effect" …
Addressing the ongoing examination of high-frequency trading practices in financial markets, we report the results of an extensive empirical study estimating the maximum possible profitability of the most aggressive such practices, and arrive at figures that are surprisingly modest. By "aggressive" we mean any trading …
The paper defines fair profit sharing ratios in Islamic PL contracts.
problem Determining fair profit sharing ratios in Islamic PL contracts.
method Introduces c-fair profit sharing ratios and uses econometrics models to compute or approximate them. result Elucidates the relation between profit sharing ratios and economic factors.
This paper finds a new method for decomposing insurer profits and losses.
problem Nonlinear balance sheets make it hard to attribute changes to risk factors.
method An axiomatic approach leading to infinitesimal sequential updating (ISU) decompositions.
result ISU decompositions are more general and applicable beyond insurance.
Study shows how financial report sentiment impacts bank profitability.
problem Understanding causal effects of financial report sentiment on bank profitability.
method Causal forest machine learning methodology, FinancialBERT sentiment scores, SHAP analysis, comprehensive dataset.
result Statistically significant causal associations between balance sheet and expense management variables and profitability.
Study on liquidity providers' performance in decentralized exchanges.
problem Unclear profitability of liquidity providers in decentralized exchanges.
method Reconstructing LP PnL dynamics from on-chain events, introducing a new metric.
result Only about one out of six LPs avoids losses, suggesting open questions about LP participation motives.
Optimizes liquidity provision intervals for profitable AMM participation.
problem Financial losses from poor liquidity provision intervals and reallocation costs.
method Developed a tractable stochastic optimization problem.
result Computes optimal liquidity provision intervals for profitable liquidity concentration.
Optimizes bidding in hourly and quarter-hourly electricity markets to reduce price impact.
problem Maximizing profit in two consecutive electricity markets with market impact and transaction costs.
method Examined multiple price scenarios, estimated market impact, used trading strategies, provided theoretical results.
result Minimizing price impact is more profitable than maximizing arbitrage in the German EPEX market.
Study examines the impact of employment benefit costs on firm profitability.
problem Impact of employment benefit costs on firm profitability.
method Panel data regression analysis using E-Views.
result There is a significant positive relationship between employment benefit costs and firm profitability.
A new high-frequency market making strategy using Deep Hawkes process.
problem Optimizing high-frequency trading in volatile markets.
method Developed a Deep Hawkes process to model order arrivals and their effects on the limit order book.
result The new strategy outperforms traditional methods in market making.
It has been assumed that arbitrage profits are not possible in efficient markets, because future prices are not predictable. Here we show that predictability alone is not a sufficient measure of market efficiency. We instead propose to measure inefficiencies of markets in terms of the maximal profit an ideal trader can…
The paper limits the profitability of technical trading rules and finds they are not better than random trading.
problem The profitability of technical trading rules in stock markets is controversial.
method Proves the upper bound of cumulative return and investigates the profitability of technical trading rules using bootstrap methodology.
result Technical trading rules are not better than random trading and less profitable than the market.