Improving Nonparametric Classification via Local Radial Regression with an Application to Stock Prediction. (arXiv:2112.13951v2 [stat.ML] UPDATED)

For supervised classification problems, this paper considers estimating the
query's label probability through local regression using observed covariates.
Well-known nonparametric kernel smoother and $k$-nearest neighbor ($k$-NN)
estimator, which take label average over a ball around the query, are
consistent but asymptotically biased particularly for a large radius of the
ball. To eradicate such bias, local polynomial regression (LPoR) and multiscale
$k$-NN (MS-$k$-NN) learn the bias term by local regression around the query and
extrapolate it to the query itself. However, …

application arxiv classification ml prediction regression stock