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A K-means Algorithm for Financial Market Risk Forecasting

arXiv.org Artificial Intelligence

Financial market risk forecasting involves applying mathematical models, historical data analysis and statistical methods to estimate the impact of future market movements on investments. This process is crucial for investors to develop strategies, financial institutions to manage assets and regulators to formulate policy. In today's society, there are problems of high error rate and low precision in financial market risk prediction, which greatly affect the accuracy of financial market risk prediction. K-means algorithm in machine learning is an effective risk prediction technique for financial market. This study uses K-means algorithm to develop a financial market risk prediction system, which significantly improves the accuracy and efficiency of financial market risk prediction. Ultimately, the outcomes of the experiments confirm that the K-means algorithm operates with user-friendly simplicity and achieves a 94.61% accuracy rate


PATE: Proximity-Aware Time series anomaly Evaluation

arXiv.org Artificial Intelligence

Evaluating anomaly detection algorithms in time series data is critical as inaccuracies can lead to flawed decision-making in various domains where real-time analytics and data-driven strategies are essential. Traditional performance metrics assume iid data and fail to capture the complex temporal dynamics and specific characteristics of time series anomalies, such as early and delayed detections. We introduce Proximity-Aware Time series anomaly Evaluation (PATE), a novel evaluation metric that incorporates the temporal relationship between prediction and anomaly intervals. PATE uses proximity-based weighting considering buffer zones around anomaly intervals, enabling a more detailed and informed assessment of a detection. Using these weights, PATE computes a weighted version of the area under the Precision and Recall curve. Our experiments with synthetic and real-world datasets show the superiority of PATE in providing more sensible and accurate evaluations than other evaluation metrics. We also tested several state-of-the-art anomaly detectors across various benchmark datasets using the PATE evaluation scheme. The results show that a common metric like Point-Adjusted F1 Score fails to characterize the detection performances well, and that PATE is able to provide a more fair model comparison. By introducing PATE, we redefine the understanding of model efficacy that steers future studies toward developing more effective and accurate detection models.


Overcoming Data and Model Heterogeneities in Decentralized Federated Learning via Synthetic Anchors

arXiv.org Artificial Intelligence

Conventional Federated Learning (FL) involves collaborative training of a global model while maintaining user data privacy. One of its branches, decentralized FL, is a serverless network that allows clients to own and optimize different local models separately, which results in saving management and communication resources. Despite the promising advancements in decentralized FL, it may reduce model generalizability due to lacking a global model. In this scenario, managing data and model heterogeneity among clients becomes a crucial problem, which poses a unique challenge that must be overcome: How can every client's local model learn generalizable representation in a decentralized manner? To address this challenge, we propose a novel Decentralized FL technique by introducing Synthetic Anchors, dubbed as DeSA. Based on the theory of domain adaptation and Knowledge Distillation (KD), we theoretically and empirically show that synthesizing global anchors based on raw data distribution facilitates mutual knowledge transfer. We further design two effective regularization terms for local training: 1) REG loss that regularizes the distribution of the client's latent embedding with the anchors and 2) KD loss that enables clients to learn from others. Through extensive experiments on diverse client data distributions, we showcase the effectiveness of DeSA in enhancing both inter- and intra-domain accuracy of each client.


AI-Assisted Diagnosis for Covid-19 CXR Screening: From Data Collection to Clinical Validation

arXiv.org Artificial Intelligence

In this paper, we present the major results from the Covid Radiographic imaging System based on AI (Co.R.S.A.) project, which took place in Italy. This project aims to develop a state-of-the-art AI-based system for diagnosing Covid-19 pneumonia from Chest X-ray (CXR) images. The contributions of this work are manyfold: the release of the public CORDA dataset, a deep learning pipeline for Covid-19 detection, and the clinical validation of the developed solution by expert radiologists. The proposed detection model is based on a two-step approach that, paired with state-of-the-art debiasing, provides reliable results. Most importantly, our investigation includes the actual usage of the diagnosis aid tool by radiologists, allowing us to assess the real benefits in terms of accuracy and time efficiency. Project homepage: https://corsa.di.unito.it/


The Effectiveness of Edge Detection Evaluation Metrics for Automated Coastline Detection

arXiv.org Artificial Intelligence

We analyse the effectiveness of RMSE, PSNR, SSIM and FOM for evaluating edge detection algorithms used for automated coastline detection. Typically, the accuracy of detected coastlines is assessed visually. This can be impractical on a large scale leading to the need for objective evaluation metrics. Hence, we conduct an experiment to find reliable metrics. We apply Canny edge detection to 95 coastline satellite images across 49 testing locations. We vary the Hysteresis thresholds and compare metric values to a visual analysis of detected edges. We found that FOM was the most reliable metric for selecting the best threshold. It could select a better threshold 92.6% of the time and the best threshold 66.3% of the time. This is compared RMSE, PSNR and SSIM which could select the best threshold 6.3%, 6.3% and 11.6% of the time respectively. We provide a reason for these results by reformulating RMSE, PSNR and SSIM in terms of confusion matrix measures. This suggests these metrics not only fail for this experiment but are not useful for evaluating edge detection in general.


How to integrate cloud service, data analytic and machine learning technique to reduce cyber risks associated with the modern cloud based infrastructure

arXiv.org Artificial Intelligence

In today's dynamic and competitive digital era, companies are leveraging cloud technology, machine learning, and data visualization techniques to reinvent their business processes. The combination of cloud technology, machine learning, and data visualization techniques allows hybrid enterprise networks to hold massive volumes of data and provide employees and customers easy access to these cloud data. These massive collections of complex data sets are facing security challenges. While cloud platforms are more vulnerable to security threats and traditional security technologies are unable to cope with the rapid data explosion in cloud platforms, machine learning powered security solutions and data visualization techniques are playing instrumental roles in detecting security threat, data breaches, and automatic finding software vulnerabilities. The purpose of this paper is to present some of the widely used cloud services, machine learning techniques and data visualization approach and demonstrate how to integrate cloud service, data analytic and machine learning techniques that can be used to detect and reduce cyber risks associated with the modern cloud based infrastructure. In this paper I applied the machine learning supervised classifier to design a model based on wellknown UNSW-NB15 dataset to predict the network behavior metrics and demonstrated how data analytics techniques can be integrated to visualize network traffics.


False Positive Sampling-based Data Augmentation for Enhanced 3D Object Detection Accuracy

arXiv.org Artificial Intelligence

Recent studies have focused on enhancing the performance of 3D object detection models. Among various approaches, ground-truth sampling has been proposed as an augmentation technique to address the challenges posed by limited ground-truth data. However, an inherent issue with ground-truth sampling is its tendency to increase false positives. Therefore, this study aims to overcome the limitations of ground-truth sampling and improve the performance of 3D object detection models by developing a new augmentation technique called false-positive sampling. False-positive sampling involves retraining the model using point clouds that are identified as false positives in the model's predictions. We propose an algorithm that utilizes both ground-truth and false-positive sampling and an algorithm for building the false-positive sample database. Additionally, we analyze the principles behind the performance enhancement due to false-positive sampling. Our experiments demonstrate that models utilizing false-positive sampling show a reduction in false positives and exhibit improved object detection performance. On the KITTI and Waymo Open datasets, models with false-positive sampling surpass the baseline models by a large margin.


Novel Interpretable and Robust Web-based AI Platform for Phishing Email Detection

arXiv.org Artificial Intelligence

Phishing emails continue to pose a significant threat, causing financial losses and security breaches. This study addresses limitations in existing research, such as reliance on proprietary datasets and lack of real-world application, by proposing a high-performance machine learning model for email classification. Utilizing a comprehensive and largest available public dataset, the model achieves a f1 score of 0.99 and is designed for deployment within relevant applications. Additionally, Explainable AI (XAI) is integrated to enhance user trust. This research offers a practical and highly accurate solution, contributing to the fight against phishing by empowering users with a real-time web-based application for phishing email detection.


US Official Warns a Cell Network Flaw Is Being Exploited for Spying

WIRED

Laser warfare, among all the long-unfulfilled imaginings of science fiction writers, is right up there with flying cars. After decades of research, the US military is actively deploying laser defense systems in the Middle East to shoot down drones launched by adversaries like Yemen's Houthi rebels, one of several recent deployments of laser tech in actual combat situations. In less pew-pew-oriented security news, the debate continues over the extension of Section 702 of the Foreign Intelligence Surveillance Act, signed by President Biden last month, as 20 civil liberties organizations sent a letter to the Justice Department demanding more clarity on when the NSA can demand US tech companies cooperate in its wiretaps. Elsewhere, WIRED obtained emails showing how New York City decided to deploy a gun-detection system called Evolv in subways despite false-positive rates as high as 85 percent. At the Google I/O developer conference, meanwhile, the search giant debuted a new AI-based feature in Android that's designed to detect if a phone has been stolen and automatically lock it down.


Medical Image Analysis for Detection, Treatment and Planning of Disease using Artificial Intelligence Approaches

arXiv.org Artificial Intelligence

X-ray is one of the prevalent image modalities for the detection and diagnosis of the human body. X-ray provides an actual anatomical structure of an organ present with disease or absence of disease. Segmentation of disease in chest X-ray images is essential for the diagnosis and treatment. In this paper, a framework for the segmentation of X-ray images using artificial intelligence techniques has been discussed. Here data has been pre-processed and cleaned followed by segmentation using SegNet and Residual Net approaches to X-ray images. Finally, segmentation has been evaluated using well known metrics like Loss, Dice Coefficient, Jaccard Coefficient, Precision, Recall, Binary Accuracy, and Validation Accuracy. The experimental results reveal that the proposed approach performs better in all respect of well-known parameters with 16 batch size and 50 epochs. The value of validation accuracy, precision, and recall of SegNet and Residual Unet models are 0.9815, 0.9699, 0.9574, and 0.9901, 0.9864, 0.9750 respectively.