Hanwha Life Insurance Presents Joint Research Achievements with Stanford HAI at ICAIF

Hanwha Life Insurance announced on the 19th that it presented a joint research paper on an AI-based arbitrage model, developed in collaboration with the Hanwha AI Center and the Stanford Institute for Human-Centered Artificial Intelligence (HAI), at the ACM International Conference on AI in Finance (ICAIF) 2025, held in Singapore from the 15th to the 18th.
The International Conference on AI in Finance (ICAIF) is an academic conference organized by the Association for Computing Machinery (ACM). It is recognized as one of the largest international AI conferences in finance, with participation from global financial institutions such as J.P. Morgan, Morgan Stanley, BlackRock, and academic researchers from around the world.
This year, ICAIF received a total of 349 paper submissions, of which 113 (an acceptance rate of 32.4%) passed the review process. The paper submitted by Hanwha Life Insurance was recognized as an outstanding study, ranking in the top 15.5% of all submissions, and was selected for the Oral Presentation session.
The official title of the paper is 'Attention Factors for Statistical Arbitrage.'
The core of the research lies in applying the 'Attention' technique, widely used in the latest generative AI, to financial Factor Models. Attention is a technology that captures important signals from vast datasets, while Factor Models are analytical frameworks that identify common factors explaining stock price fluctuations.
The model demonstrated its excellence by achieving a high return-to-risk ratio (Sharpe Ratio) in validation tests using historical data from the U.S. stock market.
Additionally, by leveraging deep learning to predict price discrepancies (residual time series) between stocks that should move similarly, the model enabled more sophisticated portfolio adjustments and improved actual returns after accounting for transaction costs.
A Hanwha Life Insurance representative stated, “It is significant in that AI can learn subtle signals overlooked by traditional financial models and uncover new investment opportunities. We will continue to expand the role of the Hanwha AI Center through applied research that goes beyond technology development to deliver real investment results.”
[email protected] Hong Ye-ji Reporter