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In this paper, a new way to integrate volatility information for estimating value at risk (VaR) and conditional value at risk (CVaR) of a portfolio is suggested. The new method is developed from the perspective of Bayesian statistics and it…

Risk Management · Quantitative Finance 2022-05-04 Taras Bodnar , Vilhelm Niklasson , Erik Thorsén

We present an algorithmic solution to the problem of incremental belief updating in the context of Monte Carlo inference in Bayesian statistical models represented by probabilistic programs. Given a model and a sample-approximated…

Machine Learning · Statistics 2024-02-13 David Tolpin

In the field of machine learning, it is still a critical issue to identify and supervise the learned representation without manually intervening or intuition assistance to extract useful knowledge or serve for the downstream tasks. In this…

Machine Learning · Computer Science 2025-12-10 Shiqi Liu , Jingxin Liu , Qian Zhao , Xiangyong Cao , Huibin Li , Deyu Meng , Hongying Meng , Sheng Liu

Despite advances in deep probabilistic models, learning discrete latent representations remains challenging. This work introduces a novel method to improve inference in discrete Variational Autoencoders by reframing the inference problem…

Machine Learning · Computer Science 2025-06-11 María Martínez-García , Grace Villacrés , David Mitchell , Pablo M. Olmos

The Variational Auto-Encoder (VAE) is a simple, efficient, and popular deep maximum likelihood model. Though usage of VAEs is widespread, the derivation of the VAE is not as widely understood. In this tutorial, we will provide an overview…

Machine Learning · Computer Science 2020-07-02 Ronald Yu

The variational autoencoder (VAE) is a popular deep latent variable model used to analyse high-dimensional datasets by learning a low-dimensional latent representation of the data. It simultaneously learns a generative model and an…

Machine Learning · Computer Science 2023-11-21 Mine Öğretir , Siddharth Ramchandran , Dimitrios Papatheodorou , Harri Lähdesmäki

Recently there has been an increased interest in unsupervised learning of disentangled representations using the Variational Autoencoder (VAE) framework. Most of the existing work has focused largely on modifying the variational cost…

Machine Learning · Statistics 2019-09-12 Jan Stühmer , Richard E. Turner , Sebastian Nowozin

Time series data with missing values is common across many domains. Healthcare presents special challenges due to prolonged periods of sensor disconnection. In such cases, having a confidence measure for imputed values is critical. Most…

Machine Learning · Computer Science 2025-07-15 Addison Weatherhead , Anna Goldenberg

Predicting future frames of video sequences is challenging due to the complex and stochastic nature of the problem. Video prediction methods based on variational auto-encoders (VAEs) have been a great success, but they require the training…

Computer Vision and Pattern Recognition · Computer Science 2021-01-29 Yizhou Zhou , Chong Luo , Xiaoyan Sun , Zheng-Jun Zha , Wenjun Zeng

Variational autoencoders (VAEs) often suffer from posterior collapse, which is a phenomenon in which the learned latent space becomes uninformative. This is often related to the hyperparameter resembling the data variance. It can be shown…

Machine Learning · Computer Science 2022-08-23 Yuhta Takida , Wei-Hsiang Liao , Chieh-Hsin Lai , Toshimitsu Uesaka , Shusuke Takahashi , Yuki Mitsufuji

Variational autoencoders (VAEs) have been used extensively to discover low-dimensional latent factors governing neural activity and animal behavior. However, without careful model selection, the uncovered latent factors may reflect noise in…

Machine Learning · Computer Science 2023-12-13 Julia Huiming Wang , Dexter Tsin , Tatiana Engel

Missing data arises when certain values are not recorded or observed for variables of interest. However, most of the statistical theory assume complete data availability. To address incomplete databases, one approach is to fill the gaps…

Hybrid recommendations have recently attracted a lot of attention where user features are utilized as auxiliary information to address the sparsity problem caused by insufficient user-item interactions. However, extracted user features…

Information Retrieval · Computer Science 2022-11-22 Yaochen Zhu , Zhenzhong Chen

The framework of variational autoencoders (VAEs) provides a principled method for jointly learning latent-variable models and corresponding inference models. However, the main drawback of this approach is the blurriness of the generated…

Machine Learning · Computer Science 2020-07-01 Ioannis Gatopoulos , Maarten Stol , Jakub M. Tomczak

Multi-step stock price prediction over a long-term horizon is crucial for forecasting its volatility, allowing financial institutions to price and hedge derivatives, and banks to quantify the risk in their trading books. Additionally, most…

Statistical Finance · Quantitative Finance 2023-10-31 Kelvin J. L. Koa , Yunshan Ma , Ritchie Ng , Tat-Seng Chua

Dynamic factor models are often estimated by point-estimation methods, disregarding parameter uncertainty. We propose a method accounting for parameter uncertainty by means of posterior approximation, using variational inference. Our…

Methodology · Statistics 2022-10-14 Erik Spånberg

Variational auto-encoders are powerful probabilistic models in generative tasks but suffer from generating low-quality samples which are caused by the holes in the prior. We propose the Coupled Variational Auto-Encoder (C-VAE), which…

Machine Learning · Statistics 2023-06-06 Xiaoran Hao , Patrick Shafto

Conditional variational autoencoders (CVAEs) are versatile deep generative models that extend the standard VAE framework by conditioning the generative model with auxiliary covariates. The original CVAE model assumes that the data samples…

Machine Learning · Statistics 2022-03-03 Siddharth Ramchandran , Gleb Tikhonov , Otto Lönnroth , Pekka Tiikkainen , Harri Lähdesmäki

Parametric estimation of stochastic differential equations (SDEs) has been a subject of intense studies already for several decades. The Heston model for instance is driven by two coupled SDEs and is often used in financial mathematics for…

Mathematical Finance · Quantitative Finance 2022-11-29 Jarosław Gruszka , Janusz Szwabiński

Accurate volatility forecasts are vital in modern finance for risk management, portfolio allocation, and strategic decision-making. However, existing methods face key limitations. Fully multivariate models, while comprehensive, are…

Statistical Finance · Quantitative Finance 2025-10-09 Duo Zhang , Jiayu Li , Junyi Mo , Elynn Chen