Evaluation of a new parallel numerical parameter optimization algorithm for a dynamical system

Ahmet Duran*, Mehmet Tuncel

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

It is important to have a scalable parallel numerical parameter optimization algorithm for a dynamical system used in financial applications where time limitation is crucial. We use Message Passing Interface parallel programming and present such a new parallel algorithm for parameter estimation. For example, we apply the algorithm to the asset flow differential equations that have been developed and analyzed since 1989 (see [3-6] and references contained therein). We achieved speed-up for some time series to run up to 512 cores (see [10]). Unlike [10], we consider more extensive financial market situations, for example, in presence of low volatility, high volatility and stock market price at a discount/premium to its net asset value with varying magnitude, in this work. Moreover, we evaluated the convergence of the model parameter vector, the nonlinear least squares error and maximum improvement factor to quantify the success of the optimization process depending on the number of initial parameter vectors.

Original languageEnglish
Title of host publicationNumerical Computations
Subtitle of host publicationTheory and Algorithms, NUMTA 2016: Proceedings of the 2nd International Conference "Numerical Computations: Theory and Algorithms"
EditorsYaroslav D. Sergeyev, Marat S. Mukhametzhanov, Francesco Dell'Accio, Marat S. Mukhametzhanov, Dmitri E. Kvasov, Yaroslav D. Sergeyev, Dmitri E. Kvasov
PublisherAmerican Institute of Physics Inc.
ISBN (Electronic)9780735414389
DOIs
Publication statusPublished - 20 Oct 2016
Event2nd International Conference on Numerical Computations: Theory and Algorithms, NUMTA 2016 - Pizzo Calabro, Italy
Duration: 19 Jun 201625 Jun 2016

Publication series

NameAIP Conference Proceedings
Volume1776
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference2nd International Conference on Numerical Computations: Theory and Algorithms, NUMTA 2016
Country/TerritoryItaly
CityPizzo Calabro
Period19/06/1625/06/16

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