Dr. Antonis Alexandridis together with Dr. Sam Cramer (School of Computing), Dr. Michael Kampouridis (School of Computing) and Alex Freitas (School of Computing) has published a paper titled “Stochastic model genetic programming:
Deriving pricing equations for rainfall weather derivatives” in the Swarm and Evolutionary Computation journal.
In this study, the authors propose a novel algorithm called Stochastic Model Genetic Programming (SMGP) for pricing rainfall derivatives traded in the weather market. The proposed method is able to generate and evolve stochastic equations of rainfall, which allows to probabilistically transform rainfall predictions from the risky world to the risk-neutral world.
You can read the full article here.