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Detrended fluctuation analysis (DFA) has been used widely to determine possible long-range correlations in data obtained from diverse settings. In a recent study [1], uncorrelated random spikes superimposed on the long-range correlated…

Statistical Mechanics · Physics 2007-05-23 Radhakrishnan Nagarajan

Excessive computational cost for learning large data and streaming data can be alleviated by using stochastic algorithms, such as stochastic gradient descent and its variants. Recent advances improve stochastic algorithms on convergence…

Machine Learning · Statistics 2019-09-24 Shih-Kang Chao , Guang Cheng

Speculative decoding accelerates large language model (LLM) inference by using a lightweight draft model to propose tokens that are later verified by a stronger target model. While effective in centralized systems, its behavior in…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-11-18 Jingwei Song , Wanyi Chen , Xinyuan Song , Max , Chris Tong , Gufeng Chen , Tianyi Zhao , Eric Yang , Bill Shi , Lynn Ai

The first moment and second central moments of the portfolio return, a.k.a. mean and variance, have been widely employed to assess the expected profit and risk of the portfolio. Investors pursue higher mean and lower variance when designing…

Portfolio Management · Quantitative Finance 2020-08-04 Rui Zhou , Daniel P. Palomar

Affine Maximizer Auctions (AMAs), a generalized mechanism family from VCG, are widely used in automated mechanism design due to their inherent dominant-strategy incentive compatibility (DSIC) and individual rationality (IR). However, as the…

Computer Science and Game Theory · Computer Science 2026-02-11 Haoran Sun , Xuanzhi Xia , Xu Chu , Xiaotie Deng

We develop an analytical synthesis that bridges data-driven Distributionally Robust Optimization (DRO) and Economic Decision Theory under Ambiguity (DTA). By reinterpreting standard regularization and DRO techniques as data-driven…

Machine Learning · Statistics 2025-02-27 Nicola Bariletto , Khai Nguyen , Nhat Ho

Derivatives, as a critical class of financial instruments, isolate and trade the price attributes of risk assets such as stocks, commodities, and indices, aiding risk management and enhancing market efficiency. However, traditional hedging…

Computational Finance · Quantitative Finance 2025-03-07 Yiheng Ding , Gangnan Yuan , Dewei Zuo , Ting Gao

Simple Clock Auctions (SCA) are a mechanism commonly used in spectrum auctions to sell lots of frequency bandwidths. We study such an auction with one player having access to perfect information against straightforward bidders. When the…

Computer Science and Game Theory · Computer Science 2025-12-12 Jad Zeroual , Marianne Akian , Aurélien Bechler , Matthieu Chardy , Stéphane Gaubert

Advanced representation learning techniques require reliable and general evaluation methods. Recently, several algorithms based on the common idea of geometric and topological analysis of a manifold approximated from the learned data…

Machine Learning · Computer Science 2022-02-15 Petra Poklukar , Vladislav Polianskii , Anastasia Varava , Florian Pokorny , Danica Kragic

Sparse optimization refers to an optimization problem involving the zero-norm in objective or constraints. In this paper, nonconvex approximation approaches for sparse optimization have been studied with a unifying point of view in DC…

Numerical Analysis · Computer Science 2014-07-23 Hoai An Le Thi , Tao Pham Dinh , Hoai Minh Le , Xuan Thanh Vo

We propose a new `hedged' Monte-Carlo (HMC) method to price financial derivatives, which allows to determine simultaneously the optimal hedge. The inclusion of the optimal hedging strategy allows one to reduce the financial risk associated…

Condensed Matter · Physics 2007-05-23 Marc Potters , Jean-Philippe Bouchaud , Dragan Sestovic

We introduce Learning-Augmented Control (LAC), an approach that integrates untrusted machine learning predictions into the control of constrained, nonlinear dynamical systems. LAC is designed to achieve the "best-of-both-worlds" guarantees,…

Systems and Control · Electrical Eng. & Systems 2025-07-22 Tongxin Li

Difference of Convex (DC) optimization problems have objective functions that are differences between two convex functions. Representative ways of solving these problems are the proximal DC algorithms, which require that the convex part of…

Optimization and Control · Mathematics 2022-09-27 Shota Takahashi , Mituhiro Fukuda , Mirai Tanaka

Large language model reasoning is often treated as a monolithic capability, relying on binary preference supervision that fails to capture partial progress or fine-grained reasoning quality. We introduce Continuous Utility Direct Preference…

The density classification (DC) task, a computation which maps global density information to local density, is studied using one-dimensional non-unitary quantum cellular automata (QCAs). Two approaches are considered: one that preserves the…

Quantum Physics · Physics 2025-01-22 Elisabeth Wagner , Federico Dell'Anna , Ramil Nigmatullin , Gavin K. Brennen

Distributionally Robust Optimization (DRO) is a worst-case approach to decision making when there is model uncertainty. It is also well known that for certain uncertainty sets, DRO is approximated by a regularized nominal problem. We show…

Optimization and Control · Mathematics 2026-05-08 Jun-ya Gotoh , Michael Jong Kim , Andrew E. B. Lim

The paper introduces a Data-driven Hierarchical Control (DHC) structure to improve performance of systems operating under the effect of system and/or environment uncertainty. The proposed hierarchical approach consists of two parts: 1) A…

Systems and Control · Electrical Eng. & Systems 2020-09-15 Lu Shi , Hanzhe Teng , Xinyue Kan , Konstantinos Karydis

We define and develop an approach for risk budgeting allocation - a risk diversification portfolio strategy - where risk is measured using a dynamic time-consistent risk measure. For this, we introduce a notion of dynamic risk contributions…

Mathematical Finance · Quantitative Finance 2024-11-01 Silvana M. Pesenti , Sebastian Jaimungal , Yuri F. Saporito , Rodrigo S. Targino

We present a numerically efficient approach for learning a risk-neutral measure for paths of simulated spot and option prices up to a finite horizon under convex transaction costs and convex trading constraints. This approach can then be…

Computational Finance · Quantitative Finance 2021-07-15 Hans Buehler , Phillip Murray , Mikko S. Pakkanen , Ben Wood

We introduce the Dynamic Conditional SKEPTIC (DCS), a semiparametric approach for efficiently and robustly estimating time-varying correlations in multivariate models. We exploit nonparametric rank-based statistics, namely Spearman's rho…

Applications · Statistics 2026-02-09 Gabriele Di Luzio , Giacomo Morelli
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