Entropy-Driven Adaptive Decomposition and Linear-Complexity Score Attention: An AI-Powered Framework for Crude Oil Financial Market Forecasting

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Authors: Jiale He, Chuanming Ma, Shouyi Wang, Yifan Zhai, Qi Tang
Cited by: 1
References: 44

Abstract

The crude oil market has obvious financial entropy, and there are characteristics such as continuous uncertainty, multi-scale fluctuations and nonlinear state transitions. These characteristics bring challenges to the traditional prediction method. In this context, in order to improve the accuracy of energy financial market prediction, this study proposes an artificial intelligence-driven hybrid prediction framework, ALA-VMD-CASA. This framework is divided into three stages. First, with the goal of minimizing envelope entropy, ALA is introduced to adaptively optimize the hyperparameters of VMD, so as to generate informative sub-modes with reduced entropy. Next, the parallel prediction of each sub-mode is carried out by using the score attention mechanism based on the CNN autoencoder, and its linear time complexity can capture volatility clustering and sudden price fluctuations. Finally, the final price prediction is generated through the aggregation component. The empirical experiment of Brent crude oil spot prices from 2010 to 2025 shows that the ALA-VMD-CASA framework is superior to benchmark models such as ARIMA, RW, RWWD, LSTM, GRU, Transformer and Informer. Compared with the best standalone model, the proposed framework reduces the mean square error by more than 63% and obtains a perfect win rate in expanding-window evaluations. These results prove that the proposed framework is effective and robust for modeling financial entropy and improving energy price forecasting.

Fields of Study & Subjects

Market Dynamics and Volatility Stock Market Forecasting Methods Energy Load and Power Forecasting

Publication details

Journal / source
Entropy
Publisher
MDPI AG
Volume
28
Issue
4
Pages
392–392
Publication date
1 April 2026
Language
EN