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Large Language Models (LLMs) have shown remarkable capabilities in natural language tasks requiring complex reasoning, yet their application in agentic, multi-step reasoning within interactive environments remains a difficult challenge.…

Artificial Intelligence · Computer Science 2024-08-15 Pranav Putta , Edmund Mills , Naman Garg , Sumeet Motwani , Chelsea Finn , Divyansh Garg , Rafael Rafailov

Agentic Artificial Intelligence (AI) constitutes a transformative paradigm in the evolution of intelligent agents and decision-support systems, redefining smart environments by enhancing operational efficiency, optimizing resource…

Managing a large-scale portfolio with many assets is one of the most challenging tasks in the field of finance. It is partly because estimation of either covariance or precision matrix of asset returns tends to be unstable or even…

Portfolio Management · Quantitative Finance 2022-03-08 Sakae Oya

AI agents, specifically powered by large language models, have demonstrated exceptional capabilities in various applications where precision and efficacy are necessary. However, these agents come with inherent risks, including the potential…

Cryptography and Security · Computer Science 2025-03-04 Ishaan Domkundwar , Mukunda N S , Ishaan Bhola , Riddhik Kochhar

We introduce a simple and tractable methodology for estimating semiparametric conditional latent factor models. Our approach disentangles the roles of characteristics in capturing factor betas of asset returns from ``alpha.'' We construct…

Econometrics · Economics 2025-04-29 Qihui Chen , Nikolai Roussanov , Xiaoliang Wang

This paper studies deep learning methodologies for portfolio optimization in the US equities market. We present a novel residual switching network that can automatically sense changes in market regimes and switch between momentum and…

Statistical Finance · Quantitative Finance 2019-10-18 Jifei Wang , Lingjing Wang

This technical brief introduces Deep Agent, an advanced autonomous AI system designed to manage complex multi-phase tasks through a novel hierarchical task management architecture. The system's foundation is built on our Hierarchical Task…

Artificial Intelligence · Computer Science 2025-02-12 Amy Yu , Erik Lebedev , Lincoln Everett , Xiaoxin Chen , Terry Chen

Agentic AI systems, built upon large language models (LLMs) and deployed in multi-agent configurations, are redefining intelligence, autonomy, collaboration, and decision-making across enterprise and societal domains. This review presents a…

Artificial Intelligence · Computer Science 2025-12-19 Shaina Raza , Ranjan Sapkota , Manoj Karkee , Christos Emmanouilidis

The standard approach for constructing a Mean-Variance portfolio involves estimating parameters for the model using collected samples. However, since the distribution of future data may not resemble that of the training set, the…

Mathematical Finance · Quantitative Finance 2025-03-12 Duy Khanh Lam

The Polymorphic Combinatorial Framework (PCF) leverages Large Language Models (LLMs) and mathematical frameworks to guide the meta-prompt enabled design of solution spaces and adaptive AI agents for complex, dynamic environments. Unlike…

Artificial Intelligence · Computer Science 2025-08-05 David Pearl , Matthew Murphy , James Intriligator

The Sharpe ratio is a way to compare the excess returns (over the risk free asset) of portfolios for each unit of volatility that is generated by a portfolio. In this paper we introduce a robust Sharpe ratio portfolio under the assumption…

Portfolio Management · Quantitative Finance 2020-05-28 Juan F. Monge , Mercedes Landete , José L. Ruiz

This study addresses the low-volatility Chinese Public Real Estate Investment Trusts (REITs) market, proposing a large language model (LLM)-driven trading framework based on multi-agent collaboration. The system constructs four types of…

Statistical Finance · Quantitative Finance 2026-02-03 Zheng Li

Contemporary benchmarks for agentic artificial intelligence (AI) frequently evaluate safety through isolated task-level accuracy thresholds, implicitly treating autonomous systems as single points of failure. This single-channel paradigm…

Computers and Society · Computer Science 2026-02-24 Nelu D. Radpour

Resume screening is a critical yet time-intensive process in talent acquisition, requiring recruiters to analyze vast volume of job applications while remaining objective, accurate, and fair. With the advancements in Large Language Models…

Computation and Language · Computer Science 2025-05-14 Frank P. -W. Lo , Jianing Qiu , Zeyu Wang , Haibao Yu , Yeming Chen , Gao Zhang , Benny Lo

With the European Union's Artificial Intelligence Act taking effect on 1 August 2024, high-risk AI applications must adhere to stringent transparency and fairness standards. This paper addresses a crucial question: how can we scientifically…

Applications · Statistics 2024-09-09 Shiqi Fang , Zexun Chen , Jake Ansell

When combining Large Language Models (LLMs) with autonomous agents, used in network monitoring and decision-making systems, this will create serious security issues. In this research, the MAESTRO framework consisting of the seven layers…

Cryptography and Security · Computer Science 2025-08-15 Pallavi Zambare , Venkata Nikhil Thanikella , Ying Liu

With the advancement of Agentic AI, researchers are increasingly leveraging autonomous agents to address challenges in software engineering (SE). However, the large language models (LLMs) that underpin these agents often function as black…

Software Engineering · Computer Science 2026-04-03 Jingyue Li , André Storhaug

Recent advances in AI are transforming AI's ubiquitous presence in our world from that of standalone AI-applications into deeply integrated AI-agents. These changes have been driven by agents' increasing capability to autonomously make…

Cryptography and Security · Computer Science 2025-07-04 Jose Sanchez Vicarte , Marcin Spoczynski , Mostafa Elsaid

Performance analysis, from the external point of view of a client who would only have access to returns and holdings of a fund, evolved towards exact attribution made in the context of portfolio optimisation, which is the internal point of…

Portfolio Management · Quantitative Finance 2014-08-08 Bruno Durin

Financial metrics like the Sharpe ratio are pivotal in evaluating investment performance by balancing risk and return. However, traditional metrics often struggle with robustness and generalization, particularly in dynamic and volatile…

Portfolio Management · Quantitative Finance 2025-02-05 Kamer Ali Yuksel , Hassan Sawaf