• Journal of Intelligence and Information Systems
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• v.25 no.1
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• pp.63-83
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• 2019

Investors prefer to look for trading points based on the graph shown in the chart rather than complex analysis, such as corporate intrinsic value analysis and technical auxiliary index analysis. However, the pattern analysis technique is difficult and computerized less than the needs of users. In recent years, there have been many cases of studying stock price patterns using various machine learning techniques including neural networks in the field of artificial intelligence(AI). In particular, the development of IT technology has made it easier to analyze a huge number of chart data to find patterns that can predict stock prices. Although short-term forecasting power of prices has increased in terms of performance so far, long-term forecasting power is limited and is used in short-term trading rather than long-term investment. Other studies have focused on mechanically and accurately identifying patterns that were not recognized by past technology, but it can be vulnerable in practical areas because it is a separate matter whether the patterns found are suitable for trading. When they find a meaningful pattern, they find a point that matches the pattern. They then measure their performance after n days, assuming that they have bought at that point in time. Since this approach is to calculate virtual revenues, there can be many disparities with reality. The existing research method tries to find a pattern with stock price prediction power, but this study proposes to define the patterns first and to trade when the pattern with high success probability appears. The M & W wave pattern published by Merrill(1980) is simple because we can distinguish it by five turning points. Despite the report that some patterns have price predictability, there were no performance reports used in the actual market. The simplicity of a pattern consisting of five turning points has the advantage of reducing the cost of increasing pattern recognition accuracy. In this study, 16 patterns of up conversion and 16 patterns of down conversion are reclassified into ten groups so that they can be easily implemented by the system. Only one pattern with high success rate per group is selected for trading. Patterns that had a high probability of success in the past are likely to succeed in the future. So we trade when such a pattern occurs. It is a real situation because it is measured assuming that both the buy and sell have been executed. We tested three ways to calculate the turning point. The first method, the minimum change rate zig-zag method, removes price movements below a certain percentage and calculates the vertex. In the second method, high-low line zig-zag, the high price that meets the n-day high price line is calculated at the peak price, and the low price that meets the n-day low price line is calculated at the valley price. In the third method, the swing wave method, the high price in the center higher than n high prices on the left and right is calculated as the peak price. If the central low price is lower than the n low price on the left and right, it is calculated as valley price. The swing wave method was superior to the other methods in the test results. It is interpreted that the transaction after checking the completion of the pattern is more effective than the transaction in the unfinished state of the pattern. Genetic algorithms(GA) were the most suitable solution, although it was virtually impossible to find patterns with high success rates because the number of cases was too large in this simulation. We also performed the simulation using the Walk-forward Analysis(WFA) method, which tests the test section and the application section separately. So we were able to respond appropriately to market changes. In this study, we optimize the stock portfolio because there is a risk of over-optimized if we implement the variable optimality for each individual stock. Therefore, we selected the number of constituent stocks as 20 to increase the effect of diversified investment while avoiding optimization. We tested the KOSPI market by dividing it into six categories. In the results, the portfolio of small cap stock was the most successful and the high vol stock portfolio was the second best. This shows that patterns need to have some price volatility in order for patterns to be shaped, but volatility is not the best.

• Journal of Intelligence and Information Systems
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• v.22 no.1
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• pp.139-157
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• 2016

Bankruptcy involves considerable costs, so it can have significant effects on a country's economy. Thus, bankruptcy prediction is an important issue. Over the past several decades, many researchers have addressed topics associated with bankruptcy prediction. Early research on bankruptcy prediction employed conventional statistical methods such as univariate analysis, discriminant analysis, multiple regression, and logistic regression. Later on, many studies began utilizing artificial intelligence techniques such as inductive learning, neural networks, and case-based reasoning. Currently, ensemble models are being utilized to enhance the accuracy of bankruptcy prediction. Ensemble classification involves combining multiple classifiers to obtain more accurate predictions than those obtained using individual models. Ensemble learning techniques are known to be very useful for improving the generalization ability of the classifier. Base classifiers in the ensemble must be as accurate and diverse as possible in order to enhance the generalization ability of an ensemble model. Commonly used methods for constructing ensemble classifiers include bagging, boosting, and random subspace. The random subspace method selects a random feature subset for each classifier from the original feature space to diversify the base classifiers of an ensemble. Each ensemble member is trained by a randomly chosen feature subspace from the original feature set, and predictions from each ensemble member are combined by an aggregation method. The k-nearest neighbors (KNN) classifier is robust with respect to variations in the dataset but is very sensitive to changes in the feature space. For this reason, KNN is a good classifier for the random subspace method. The KNN random subspace ensemble model has been shown to be very effective for improving an individual KNN model. The k parameter of KNN base classifiers and selected feature subsets for base classifiers play an important role in determining the performance of the KNN ensemble model. However, few studies have focused on optimizing the k parameter and feature subsets of base classifiers in the ensemble. This study proposed a new ensemble method that improves upon the performance KNN ensemble model by optimizing both k parameters and feature subsets of base classifiers. A genetic algorithm was used to optimize the KNN ensemble model and improve the prediction accuracy of the ensemble model. The proposed model was applied to a bankruptcy prediction problem by using a real dataset from Korean companies. The research data included 1800 externally non-audited firms that filed for bankruptcy (900 cases) or non-bankruptcy (900 cases). Initially, the dataset consisted of 134 financial ratios. Prior to the experiments, 75 financial ratios were selected based on an independent sample t-test of each financial ratio as an input variable and bankruptcy or non-bankruptcy as an output variable. Of these, 24 financial ratios were selected by using a logistic regression backward feature selection method. The complete dataset was separated into two parts: training and validation. The training dataset was further divided into two portions: one for the training model and the other to avoid overfitting. The prediction accuracy against this dataset was used to determine the fitness value in order to avoid overfitting. The validation dataset was used to evaluate the effectiveness of the final model. A 10-fold cross-validation was implemented to compare the performances of the proposed model and other models. To evaluate the effectiveness of the proposed model, the classification accuracy of the proposed model was compared with that of other models. The Q-statistic values and average classification accuracies of base classifiers were investigated. The experimental results showed that the proposed model outperformed other models, such as the single model and random subspace ensemble model.

• Journal of Korea Water Resources Association
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• v.47 no.2
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• pp.145-159
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• 2014

This study is to evaluate the future climate change impact on turbidity water and eutrophication for Chungju Lake by using CE-QUAL-W2 reservoir water quality model coupled with SWAT watershed model. The SWAT was calibrated and validated using 11 years (2000~2010) daily streamflow data at three locations and monthly stream water quality data at two locations. The CE-QUAL-W2 was calibrated and validated for 2 years (2008 and 2010) water temperature, suspended solid, total nitrogen, total phosphorus, and Chl-a. For the future assessment, the SWAT results were used as boundary conditions for CE-QUAL-W2 model run. To evaluate the future water quality variation in reservoir, the climate data predicted by MM5 RCM(Regional Climate Model) of Special Report on Emissions Scenarios (SRES) A1B for three periods (2013~2040, 2041~2070 and 2071~2100) were downscaled by Artificial Neural Networks method to consider Typhoon effect. The RCM temperature and precipitation outputs and historical records were used to generate pollutants loading from the watershed. By the future temperature increase, the lake water temperature showed $0.5^{\circ}C$ increase in shallow depth while $-0.9^{\circ}C$ in deep depth. The future annual maximum sediment concentration into the lake from the watershed showed 17% increase in wet years. The future lake residence time above 10 mg/L suspended solids (SS) showed increases of 6 and 17 days in wet and dry years respectively comparing with normal year. The SS occupying rate of the lake also showed increases of 24% and 26% in both wet and dry year respectively. In summary, the future lake turbidity showed longer lasting with high concentration comparing with present behavior. Under the future lake environment by the watershed and within lake, the future maximum Chl-a concentration showed increases of 19 % in wet year and 3% in dry year respectively.

• Economic and Environmental Geology
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• v.55 no.6
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• pp.737-760
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• 2022

For the geological disposal of high-level radioactive wastes (HLW), an understanding of deep subsurface environment is essential through geological, hydrogeological, geochemical, and geotechnical investigations. Although South Korea plans the geological disposal of HLW, only a few studies have been conducted for characterizing the geochemistry of deep subsurface environment. To guide the hydrogeochemical research for selecting suitable repository sites, this study overviewed the status and trends in hydrogeochemical characterization of deep groundwater for the deep geological disposal of HLW in developed countries. As a result of examining the selection process of geological disposal sites in 8 countries including USA, Canada, Finland, Sweden, France, Japan, Germany, and Switzerland, the following geochemical parameters were needed for the geochemical characterization of deep subsurface environment: major and minor elements and isotopes (e.g., ³⁴S and ¹⁸O of SO₄^2-, ¹³C and ¹⁴C of DIC, ²H and ¹⁸O of water) of both groundwater and pore water (in aquitard), fracture-filling minerals, organic materials, colloids, and oxidation-reduction indicators (e.g., Eh, Fe²⁺/Fe³⁺, H₂S/SO₄^2-, NH₄⁺/NO₃^-). A suitable repository was selected based on the integrated interpretation of these geochemical data from deep subsurface. In South Korea, hydrochemical types and evolutionary patterns of deep groundwater were identified using artificial neural networks (e.g., Self-Organizing Map), and the impact of shallow groundwater mixing was evaluated based on multivariate statistics (e.g., M3 modeling). The relationship between fracture-filling minerals and groundwater chemistry also has been investigated through a reaction-path modeling. However, these previous studies in South Korea had been conducted without some important geochemical data including isotopes, oxidationreduction indicators and DOC, mainly due to the lack of available data. Therefore, a detailed geochemical investigation is required over the country to collect these hydrochemical data to select a geological disposal site based on scientific evidence.

• Korean Journal of Heritage: History & Science
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• v.57 no.3
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• pp.24-35
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• 2024

Recently, research using deep learning technologies such as artificial intelligence, convolutional neural networks, etc. has been actively conducted in various fields including healthcare, manufacturing, autonomous driving, and security, and is having a significant influence on society. In line with this trend, the present study attempted to apply deep learning to the classification of archaeological artifacts, specifically ancient Korean roof-end tiles. Using 100 images of roof-end tiles from each of the Goguryeo, Baekje, and Silla dynasties, for a total of 300 base images, a dataset was formed and expanded to 1,200 images using data augmentation techniques. After building a model using transfer learning from the pre-trained EfficientNetB0 model and conducting five-fold cross-validation, an average training accuracy of 98.06% and validation accuracy of 97.08% were achieved. Furthermore, when model performance was evaluated with a test dataset of 240 images, it could classify the roof-end tile images from the three dynasties with a minimum accuracy of 91%. In particular, with a learning rate of 0.0001, the model exhibited the highest performance, with accuracy of 92.92%, precision of 92.96%, recall of 92.92%, and F1 score of 92.93%. This optimal result was obtained by preventing overfitting and underfitting issues using various learning rate settings and finding the optimal hyperparameters. The study's findings confirm the potential for applying deep learning technologies to the classification of Korean archaeological materials, which is significant. Additionally, it was confirmed that the existing ImageNet dataset and parameters could be positively applied to the analysis of archaeological data. This approach could lead to the creation of various models for future archaeological database accumulation, the use of artifacts in museums, and classification and organization of artifacts.

• Journal of Intelligence and Information Systems
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• v.18 no.3
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• pp.185-202
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• 2012

.Since the value of information has been realized in the information society, the usage and collection of information has become important. A facial expression that contains thousands of information as an artistic painting can be described in thousands of words. Followed by the idea, there has recently been a number of attempts to provide customers and companies with an intelligent service, which enables the perception of human emotions through one's facial expressions. For example, MIT Media Lab, the leading organization in this research area, has developed the human emotion prediction model, and has applied their studies to the commercial business. In the academic area, a number of the conventional methods such as Multiple Regression Analysis (MRA) or Artificial Neural Networks (ANN) have been applied to predict human emotion in prior studies. However, MRA is generally criticized because of its low prediction accuracy. This is inevitable since MRA can only explain the linear relationship between the dependent variables and the independent variable. To mitigate the limitations of MRA, some studies like Jung and Kim (2012) have used ANN as the alternative, and they reported that ANN generated more accurate prediction than the statistical methods like MRA. However, it has also been criticized due to over fitting and the difficulty of the network design (e.g. setting the number of the layers and the number of the nodes in the hidden layers). Under this background, we propose a novel model using Support Vector Regression (SVR) in order to increase the prediction accuracy. SVR is an extensive version of Support Vector Machine (SVM) designated to solve the regression problems. The model produced by SVR only depends on a subset of the training data, because the cost function for building the model ignores any training data that is close (within a threshold ${\varepsilon}$) to the model prediction. Using SVR, we tried to build a model that can measure the level of arousal and valence from the facial features. To validate the usefulness of the proposed model, we collected the data of facial reactions when providing appropriate visual stimulating contents, and extracted the features from the data. Next, the steps of the preprocessing were taken to choose statistically significant variables. In total, 297 cases were used for the experiment. As the comparative models, we also applied MRA and ANN to the same data set. For SVR, we adopted '${\varepsilon}$-insensitive loss function', and 'grid search' technique to find the optimal values of the parameters like C, d, ${\sigma}^2$, and ${\varepsilon}$. In the case of ANN, we adopted a standard three-layer backpropagation network, which has a single hidden layer. The learning rate and momentum rate of ANN were set to 10%, and we used sigmoid function as the transfer function of hidden and output nodes. We performed the experiments repeatedly by varying the number of nodes in the hidden layer to n/2, n, 3n/2, and 2n, where n is the number of the input variables. The stopping condition for ANN was set to 50,000 learning events. And, we used MAE (Mean Absolute Error) as the measure for performance comparison. From the experiment, we found that SVR achieved the highest prediction accuracy for the hold-out data set compared to MRA and ANN. Regardless of the target variables (the level of arousal, or the level of positive / negative valence), SVR showed the best performance for the hold-out data set. ANN also outperformed MRA, however, it showed the considerably lower prediction accuracy than SVR for both target variables. The findings of our research are expected to be useful to the researchers or practitioners who are willing to build the models for recognizing human emotions.

• Journal of Intelligence and Information Systems
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• v.20 no.1
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• pp.35-48
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• 2014

According to the 2013 construction market outlook report, the liquidation of construction companies is expected to continue due to the ongoing residential construction recession. Bankruptcies of construction companies have a greater social impact compared to other industries. However, due to the different nature of the capital structure and debt-to-equity ratio, it is more difficult to forecast construction companies' bankruptcies than that of companies in other industries. The construction industry operates on greater leverage, with high debt-to-equity ratios, and project cash flow focused on the second half. The economic cycle greatly influences construction companies. Therefore, downturns tend to rapidly increase the bankruptcy rates of construction companies. High leverage, coupled with increased bankruptcy rates, could lead to greater burdens on banks providing loans to construction companies. Nevertheless, the bankruptcy prediction model concentrated mainly on financial institutions, with rare construction-specific studies. The bankruptcy prediction model based on corporate finance data has been studied for some time in various ways. However, the model is intended for all companies in general, and it may not be appropriate for forecasting bankruptcies of construction companies, who typically have high liquidity risks. The construction industry is capital-intensive, operates on long timelines with large-scale investment projects, and has comparatively longer payback periods than in other industries. With its unique capital structure, it can be difficult to apply a model used to judge the financial risk of companies in general to those in the construction industry. Diverse studies of bankruptcy forecasting models based on a company's financial statements have been conducted for many years. The subjects of the model, however, were general firms, and the models may not be proper for accurately forecasting companies with disproportionately large liquidity risks, such as construction companies. The construction industry is capital-intensive, requiring significant investments in long-term projects, therefore to realize returns from the investment. The unique capital structure means that the same criteria used for other industries cannot be applied to effectively evaluate financial risk for construction firms. Altman Z-score was first published in 1968, and is commonly used as a bankruptcy forecasting model. It forecasts the likelihood of a company going bankrupt by using a simple formula, classifying the results into three categories, and evaluating the corporate status as dangerous, moderate, or safe. When a company falls into the "dangerous" category, it has a high likelihood of bankruptcy within two years, while those in the "safe" category have a low likelihood of bankruptcy. For companies in the "moderate" category, it is difficult to forecast the risk. Many of the construction firm cases in this study fell in the "moderate" category, which made it difficult to forecast their risk. Along with the development of machine learning using computers, recent studies of corporate bankruptcy forecasting have used this technology. Pattern recognition, a representative application area in machine learning, is applied to forecasting corporate bankruptcy, with patterns analyzed based on a company's financial information, and then judged as to whether the pattern belongs to the bankruptcy risk group or the safe group. The representative machine learning models previously used in bankruptcy forecasting are Artificial Neural Networks, Adaptive Boosting (AdaBoost) and, the Support Vector Machine (SVM). There are also many hybrid studies combining these models. Existing studies using the traditional Z-Score technique or bankruptcy prediction using machine learning focus on companies in non-specific industries. Therefore, the industry-specific characteristics of companies are not considered. In this paper, we confirm that adaptive boosting (AdaBoost) is the most appropriate forecasting model for construction companies by based on company size. We classified construction companies into three groups - large, medium, and small based on the company's capital. We analyzed the predictive ability of AdaBoost for each group of companies. The experimental results showed that AdaBoost has more predictive ability than the other models, especially for the group of large companies with capital of more than 50 billion won.