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Systems with stochastic time delay between the input and output present a number of unique challenges. Time domain noise leads to irregular alignments, obfuscates relationships and attenuates inferred coefficients. To handle these…

Methodology · Statistics 2021-11-15 Juan Camilo Orduz , Aaron Pickering

Estimation of high-dimensional covariance matrices in latent factor models is an important topic in many fields and especially in finance. Since the number of financial assets grows while the estimation window length remains of limited…

Statistical Finance · Quantitative Finance 2024-07-08 Lucija Žignić , Stjepan Begušić , Zvonko Kostanjčar

High-dimensional multivariate longitudinal data, which arise when many outcome variables are measured repeatedly over time, are becoming increasingly common in social, behavioral and health sciences. We propose a latent variable model for…

Methodology · Statistics 2025-12-09 Sze Ming Lee , Yunxiao Chen , Tony Sit

Random Forest (RF) is an ensemble supervised machine learning technique that was developed by Breiman over a decade ago. Compared with other ensemble techniques, it has proved its accuracy and superiority. Many researchers, however, believe…

Machine Learning · Computer Science 2015-03-18 Khaled Fawagreh , Mohamad Medhat Gaber , Eyad Elyan

This paper develops a performant Bayesian approach to conditional average treatment effect (CATE) estimation in regression discontinuity designs (RDD), an increasingly prevalent form of quasi-experiment that facilitates causal inference.…

Methodology · Statistics 2026-05-18 Rafael Alcantara , P. Richard Hahn , Hedibert F. Lopes

This paper proposes a new methodological framework for estimating inferential models with latent variables. It also introduces a new latent variable regression model called LARX: an extension of the ubiquitous autoregressive model with…

Econometrics · Economics 2026-01-09 Daniil Bargman

We address a portfolio selection problem that combines active (outperformance) and passive (tracking) objectives using techniques from convex analysis. We assume a general semimartingale market model where the assets' growth rate processes…

Portfolio Management · Quantitative Finance 2019-03-19 Ali Al-Aradi , Sebastian Jaimungal

Fixed tree topologies are widely used in phylodynamic analyses to reduce computational burden, yet the consequences of this assumption remain insufficiently understood. Here, we systematically assess the impact of various fixed-topology…

Populations and Evolution · Quantitative Biology 2025-12-01 Mathieu Fourment , Jiansi Gao , Marc A Suchard , Frederick A Matsen

We introduce a novel machine learning model for credit risk by combining tree-boosting with a latent spatio-temporal Gaussian process model accounting for frailty correlation. This allows for modeling non-linearities and interactions among…

Risk Management · Quantitative Finance 2025-12-19 Pascal Kündig , Fabio Sigrist

Staged trees are probabilistic graphical models capable of representing any class of non-symmetric independence via a coloring of its vertices. Several structural learning routines have been defined and implemented to learn staged trees…

Machine Learning · Statistics 2024-05-29 Jack Storror Carter , Manuele Leonelli , Eva Riccomagno , Gherardo Varando

Fixed effects models are very flexible because they do not make assumptions on the distribution of effects and can also be used if the heterogeneity component is correlated with explanatory variables. A disadvantage is the large number of…

Methodology · Statistics 2015-12-17 Moritz Berger , Gerhard Tutz

Connectivity estimation is challenging in the context of high-dimensional data. A useful preprocessing step is to group variables into clusters, however, it is not always clear how to do so from the perspective of connectivity estimation.…

Machine Learning · Statistics 2018-05-25 Ricardo Pio Monti , Aapo Hyvärinen

Random forest (RF) methodology is one of the most popular machine learning techniques for prediction problems. In this article, we discuss some cases where random forests may suffer and propose a novel generalized RF method, namely…

Machine Learning · Statistics 2019-04-24 Haozhe Zhang , Dan Nettleton , Zhengyuan Zhu

Synthetic augmentation is increasingly used to mitigate data scarcity in financial machine learning, yet its statistical role remains poorly understood. We formalize synthetic augmentation as a modification of the effective training…

Artificial Intelligence · Computer Science 2026-04-17 Mel Sohm , Charles Dezons , Sami Sellami , Oscar Ninou , Axel Pincon

Precision medicine provides customized treatments to patients based on their characteristics and is a promising approach to improving treatment efficiency. Large scale omics data are useful for patient characterization, but often their…

Machine Learning · Statistics 2023-01-24 Jianchang Hu , Silke Szymczak

There are many time series in the literature with high dimension yet limited sample sizes, such as macroeconomic variables, and it is almost impossible to obtain efficient estimation and accurate prediction by using the corresponding…

Methodology · Statistics 2025-10-30 Yuchang Lin , Qianqian Zhu , Guodong Li

For many practical, high-risk applications, it is essential to quantify uncertainty in a model's predictions to avoid costly mistakes. While predictive uncertainty is widely studied for neural networks, the topic seems to be under-explored…

Machine Learning · Computer Science 2021-04-05 Andrey Malinin , Liudmila Prokhorenkova , Aleksei Ustimenko

We discuss Bayesian analysis of multivariate time series with dynamic factor models that exploit time-adaptive sparsity in model parametrizations via the latent threshold approach. One central focus is on the transfer responses of multiple…

Applications · Statistics 2022-06-07 Jouchi Nakajima , Mike West

Many existing mortality models follow the framework of classical factor models, such as the Lee-Carter model and its variants. Latent common factors in factor models are defined as time-related mortality indices (such as $\kappa_t$ in the…

Methodology · Statistics 2021-02-04 Lingyu He , Fei Huang , Jianjie Shi , Yanrong Yang

We reconcile the two worlds of dense and sparse modeling by exploiting the positive aspects of both. We employ a factor model and assume {the dynamic of the factors is non-pervasive while} the idiosyncratic term follows a sparse vector…

Methodology · Statistics 2022-05-25 Jonas Krampe , Luca Margaritella