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This note discusses some of the aspects of a model for the covariance of equity returns based on a simple "isotropic" structure in which all pairwise correlations are taken to be the same value. The effect of the structure on feasible…

Portfolio Management · Quantitative Finance 2025-07-29 Graham L. Giller

The problem of detecting changes in covariance for a single pair of features has been studied in some detail, but may be limited in importance or general applicability. In contrast, testing equality of covariance matrices of a {\it set} of…

Methodology · Statistics 2017-12-12 Yi-Hui Zhou

Our world is full of physics-driven data where effective mappings between data manifolds are desired. There is an increasing demand for understanding combined model-based and data-driven methods. We propose a nonlinear, learned singular…

Machine Learning · Computer Science 2020-09-30 Yoeri E. Boink , Christoph Brune

Identifying meaningful and independent factors of variation in a dataset is a challenging learning task frequently addressed by means of deep latent variable models. This task can be viewed as learning symmetry transformations preserving…

Machine Learning · Computer Science 2022-11-01 Maxim Samarin , Vitali Nesterov , Mario Wieser , Aleksander Wieczorek , Sonali Parbhoo , Volker Roth

This work analyzes singular-value spectra of weight matrices in pretrained transformer models to understand how information is stored at both ends of the spectrum. Using Random Matrix Theory (RMT) as a zero information hypothesis, we…

Machine Learning · Computer Science 2025-11-07 Max Staats , Matthias Thamm , Bernd Rosenow

We propose an ML-based model that automates and expedites the solution of MIPs by predicting the values of variables. Our approach is motivated by the observation that many problem instances share salient features and solution structures…

Optimization and Control · Mathematics 2023-02-24 Konstantinos Benidis , Ugo Rosolia , Syama Rangapuram , George Iosifidis , Georgios Paschos

The truncated singular value decomposition may be used to find the solution of linear discrete ill-posed problems in conjunction with Tikhonov regularization and requires the estimation of a regularization parameter that balances between…

Numerical Analysis · Mathematics 2022-08-16 Rosemary A. Renaut , Anthony W. Helmstetter , Saeed Vatankhah

This paper develops a spatially resolved perturbation theory for singular vectors under high-dimensional separable noise and applies it to data-driven matrix recovery. In the asymptotic regime where the matrix dimensions are proportional…

Spectral Theory · Mathematics 2026-03-16 Pei-Chun Su

Physics-Informed Neural Networks (PINNs) have emerged as a powerful framework for solving partial differential equations (PDEs) by embedding physical laws directly into the loss function. However, as a fundamental optimization issue,…

Machine Learning · Computer Science 2025-09-03 Feilong Jiang , Xiaonan Hou , Jianqiao Ye , Min Xia

Stock market returns are typically analyzed using standard regression, yet they reside on irregular domains which is a natural scenario for graph signal processing. To this end, we consider a market graph as an intuitive way to represent…

Portfolio Management · Quantitative Finance 2021-06-08 Alvaro Arroyo , Bruno Scalzo , Ljubisa Stankovic , Danilo P. Mandic

In this paper we estimate the mean-variance portfolio in the high-dimensional case using the recent results from the theory of random matrices. We construct a linear shrinkage estimator which is distribution-free and is optimal in the sense…

Statistical Finance · Quantitative Finance 2023-04-19 Taras Bodnar , Yarema Okhrin , Nestor Parolya

We develop a data-driven optimal shrinkage algorithm for matrix denoising in the presence of high-dimensional noise with a separable covariance structure; that is, the noise is colored and dependent across samples. The algorithm, coined…

Applications · Statistics 2024-05-14 Pei-Chun Su , Hau-Tieng Wu

Accurate state estimation requires careful consideration of uncertainty surrounding the process and measurement models; these characteristics are usually not well-known and need an experienced designer to select the covariance matrices. An…

Machine Learning · Statistics 2025-07-18 Pardha Sai Krishna Ala , Ameya Salvi , Venkat Krovi , Matthias Schmid

A low rank matrix X has been contaminated by uniformly distributed noise, missing values, outliers and corrupt entries. Reconstruction of X from the singular values and singular vectors of the contaminated matrix Y is a key problem in…

Information Theory · Computer Science 2017-11-21 Danny Barash , Matan Gavish

Designing appropriate variational regularization schemes is a crucial part of solving inverse problems, making them better-posed and guaranteeing that the solution of the associated optimization problem satisfies desirable properties.…

Machine Learning · Computer Science 2020-06-09 Ronan Fablet , Lucas Drumetz , Francois Rousseau

We show that regularizing Bayesian predictive regressions provides a framework for prior sensitivity analysis. We develop a procedure that jointly regularizes expectations and variance-covariance matrices using a pair of shrinkage priors.…

Methodology · Statistics 2017-09-15 Guanhao Feng , Nicholas G. Polson

Initial value problems -- a system of ordinary differential equations and corresponding initial conditions -- can be used to describe many physical phenomena including those arise in classical mechanics. We have developed a novel approach…

Computational Physics · Physics 2025-05-27 Jack Griffiths , Steven A. Wrathmall , Simon A. Gardiner

State-space models are used in a wide range of time series analysis formulations. Kalman filtering and smoothing are work-horse algorithms in these settings. While classic algorithms assume Gaussian errors to simplify estimation, recent…

Optimization and Control · Mathematics 2018-07-02 Jonathan Jonker , Aleksandr Y. Aravkin , James V. Burke , Gianluigi Pillonetto , Sarah Webster

We employ deep learning techniques to investigate the critical properties of the continuous phase transition in the majority vote model. In addition to deep learning, principal component analysis is utilized to analyze the transition. For…

Covariance matrices estimated from short, noisy, and non-Gaussian financial time series are notoriously unstable. Empirical evidence suggests that such covariance structures often exhibit power-law scaling, reflecting complex, hierarchical…

Computational Finance · Quantitative Finance 2026-01-13 Andres Garcia-Medina