Papers › Theoretically Motivated Data Augmentation and Regularization for Portfolio Construction

Theoretically Motivated Data Augmentation and Regularization for Portfolio Construction

8 Jun 2021arXiv:2106.04114archive 2025-07-28

Liu Ziyin, Kentaro Minami, Kentaro Imajo

The task we consider is portfolio construction in a speculative market, a fundamental problem in modern finance. While various empirical works now exist to explore deep learning in finance, the theory side is almost non-existent. In this work, we focus on developing a theoretical framework for understanding the use of data augmentation for deep-learning-based approaches to quantitative finance. The proposed theory clarifies the role and necessity of data augmentation for finance; moreover, our theory implies that a simple algorithm of injecting a random noise of strength √(|rₜ₋₁|) to the observed return rₜ is better than not injecting any noise and a few other financially irrelevant data augmentation techniques.

PaperPDFCode

Code

pfnet-research/finance_data_augmentation_icaif2022 officialmentioned in papermentioned on GitHubpytorch report

Repository list and official/mentioned flags are the archive's, frozen 2025-07-28. Reachability, where shown, is from one Syntology probe window (2026-09-16 to 2026-09-18); repositories not probed show nothing. GitHub stars are not tracked.

Code Syntology ran Syntology

Not run by Syntology. Nothing on this page verifies that the listed code works.

Tasks

Data AugmentationDeep Learning

Results from the paper archive 2025-07-28

No leaderboard rows for this paper in the archive.

Report a problem or propose a change · a person checks every report against the paper or source before anything changes; decisions are listed on /corrections