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J. M. Diederik Kruijssen

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Introducing the CZAR Loss: A Tailored Objective Function for Financial Log-Return Predictions

In quantitative finance, standard regression losses are misaligned with the economics of return prediction. As the conditional mean of financial log-returns is close to zero, symmetric losses such as the mean squared and mean absolute errors make the constant zero forecast a near-optimal solution, penalizing models wit...

Joel Pfeffer, J. M. Diederik Kruijssen, F. Stecker et al. · 0 citations
#artificial intelligence Open access Aug 2026

Flawed in Nature, Perfect through Evolution

It is shown that a swarm of AI/ML models subjected to deliberate mutations of their model coefficients away from optimality can reliably and sustainably improve performance in changing environments by acting as a statistical hedge against non-stationarity.

J. M. Diederik Kruijssen · 0 citations

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