Is Image Encoding Beneficial for Deep Learning in Finance? An Analysis of Image Encoding Methods for the Application of Convolutional Neural Networks in Finance
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Abstract (arXiv)
In 2012, SEC mandated all corporate filings for any company doing business in US be entered into the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. In this work we are investigating ways to analyze the data available through EDGAR database. This may serve portfolio managers (pension funds, mutual funds, insurance, hedge funds) to get automated insights into companies they invest in, to better manage their portfolios. The analysis is based on Artificial Neural Networks applied to the data.} In particular, one of the most popular machine learning methods, the Convolutional Neural Network (CNN) architecture, originally developed to interpret and classify images, is now being used to interpret financial data. This work investigates the best way to input data collected from the SEC filings into a CNN architecture. We incorporate accounting principles and mathematical methods into the design of three image encoding methods. Specifically, two methods are derived from accounting principles (Sequential Arrangement, Category Chunk Arrangement) and one is using a purely mathematical technique (Hilbert Vector Arrangement). In this work we analyze fundamental financial data as well as financial ratio data and study companies from the financial, healthcare and IT sectors in the United States. We find that using imaging techniques to input data for CNN works better for financial ratio data but is not significantly better than simply using the 1D input directly for fundamental data. We do not find the Hilbert Vector Arrangement technique to be significantly better than other imaging techniques.
Key facts. Cited by 4 papers in the map (data through 7 Oct 2026). First posted on arXiv 17 Oct 2020.
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Citing papers per year: 2021: 3; 2022: 0; 2023: 0; 2024: 1.
4 papers.
- 2021Denoised Labels for Financial Time-Series Data via Self-Supervised Learningcited by 4
- 2024AMA-LSTM: Pioneering Robust and Fair Financial Audio Analysis for Stock Volatility Predictioncited by 4
- 2021Adversarial Semi-supervised Learning for Corporate Credit Ratingscited by 2
- 2021A Sparsity Algorithm with Applications to Corporate Credit Ratingcited by 1
- 2024AMA-LSTM: Pioneering Robust and Fair Financial Audio Analysis for Stock Volatility Prediction3 Jul 2024
- 2021Denoised Labels for Financial Time-Series Data via Self-Supervised Learning19 Dec 2021
- 2021A Sparsity Algorithm with Applications to Corporate Credit Rating21 Jul 2021
- 2021Adversarial Semi-supervised Learning for Corporate Credit Ratings4 Apr 2021