Work

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

Year: 2025

Type: article

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.

Source: Electronics

DOI: 10.3390/electronics14234778