Communication-Efficient Federated Optimization with Gradient Clipping and Attention Aggregation for Data Analytics and Prediction

To address the challenge of collaborative strategy optimization caused by non-independent and identically distributed data in cross-institutional scenarios, a federated quantitative learning framework integrating Path Attention Aggregation Module (PAAM), Gradient Clipping and Compression (GCC), and a Heterogeneity-Aware Adaptive Optimizer (HAAO) is proposed to achieve efficient return optimization and robust risk control. The framework is validated across multi-market and multi-institutional environments, with experiments covering three key dimensions: return performance, risk management, and communication efficiency. The results demonstrate that the proposed model achieves an annualized return (AR) of 16.57%, representing an approximate 19.7% improvement over the traditional FedAvg model; the Sharpe ratio (SR) increases to 1.25, while the maximum drawdown (MDD) decreases to 15.92% and volatility remains controlled at 8.83%, indicating superior balance between return and risk. In the communication efficiency evaluation, when the number of communication rounds is reduced to 50 and 25, the model maintains accuracy at 94.2% and 92.8%, recall at 93.5% and 91.7%, and precision at 94.8% and 92.3%, respectively. Overall, the proposed framework achieves a dynamic balance between global convergence and risk constraints through path weighting, gradient sparsification, and frequency-domain learning rate adjustment. This research provides a novel and scalable paradigm for distributed financial prediction that ensures both privacy preservation and communication efficiency, demonstrating substantial engineering feasibility and practical applicability in intelligent financial modeling.

Authors

Institutions

Publication Details

Journal
Electronics
Published
2025-12-04
DOI
https://doi.org/10.3390/electronics14234778
Primary Topic
Stock Market Forecasting Methods
Type
article
Field-Weighted Citation Impact
0.00

Funders

Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Communication-Efficient Federated Optimization with Gradient Clipping and Attention Aggregation for Data Analytics and Prediction

Manzhou Li, Linwan Zhang, Shaowen Tang, Xinyi Gong et al.
Electronics
Stock Market Forecasting Methods
article

Communication-Efficient Federated Optimization with Gradient Clipping and Attention Aggregation for Data Analytics and Prediction

Manzhou Li, Linwan Zhang, Shaowen Tang, Xinyi Gong, Shanhui Xu, Peng Hu, Xia Zeng
article en

Abstract

To address the challenge of collaborative strategy optimization caused by non-independent and identically distributed data in cross-institutional scenarios, a federated quantitative learning framework integrating Path Attention Aggregation Module (PAAM), Gradient Clipping and Compression (GCC), and a Heterogeneity-Aware Adaptive Optimizer (HAAO) is proposed to achieve efficient return optimization and robust risk control. The framework is validated across multi-market and multi-institutional environments, with experiments covering three key dimensions: return performance, risk management, and communication efficiency. The results demonstrate that the proposed model achieves an annualized return (AR) of 16.57%, representing an approximate 19.7% improvement over the traditional FedAvg model; the Sharpe ratio (SR) increases to 1.25, while the maximum drawdown (MDD) decreases to 15.92% and volatility remains controlled at 8.83%, indicating superior balance between return and risk. In the communication efficiency evaluation, when the number of communication rounds is reduced to 50 and 25, the model maintains accuracy at 94.2% and 92.8%, recall at 93.5% and 91.7%, and precision at 94.8% and 92.3%, respectively. Overall, the proposed framework achieves a dynamic balance between global convergence and risk constraints through path weighting, gradient sparsification, and frequency-domain learning rate adjustment. This research provides a novel and scalable paradigm for distributed financial prediction that ensures both privacy preservation and communication efficiency, demonstrating substantial engineering feasibility and practical applicability in intelligent financial modeling.

ElectronicsVol. 14(23)
Peking University (CN), China Agricultural University (CN)
National Natural Science Foundation of China
Openalex Percentile: Top 56%
Stock Market Forecasting Methods
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.