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Risk-averse investors often wish to exclude stocks from their portfolios that bear high credit risk, which is a measure of a firm's likelihood of bankruptcy. This risk is commonly estimated by constructing signals from quarterly accounting…

Computational Finance · Quantitative Finance 2025-03-06 Maksim Papenkov , Beau Robinette

Reinforcement learning (RL) is a machine learning approach that trains agents to maximize cumulative rewards through interactions with environments. The integration of RL with deep learning has recently resulted in impressive achievements…

Neural and Evolutionary Computing · Computer Science 2023-08-31 Hui Bai , Ran Cheng , Yaochu Jin

Socio-economic causal effects depend heavily on their institutional and environmental contexts. The same intervention can produce different, even opposite, effects across regulatory regimes, market conditions, time periods, or populations.…

Computation and Language · Computer Science 2026-05-27 Donggyu Lee , Hyeok Yun , Meeyoung Cha , Sungwon Park , Sangyoon Park , Jihee Kim

Financial returns are known to exhibit heavy tails, volatility clustering and abrupt jumps that are poorly captured by classical diffusion models. Advances in machine learning have enabled highly flexible functional forms for conditional…

Risk Management · Quantitative Finance 2025-09-03 Ziyao Wang , Svetlozar T Rachev

In the face of increasing financial uncertainty and market complexity, this study presents a novel risk-aware financial forecasting framework that integrates advanced machine learning techniques with intuitionistic fuzzy multi-criteria…

Statistical Finance · Quantitative Finance 2025-12-23 Safiye Turgay , Serkan Erdoğan , Željko Stević , Orhan Emre Elma , Tevfik Eren , Zhiyuan Wang , Mahmut Baydaş

Maximum entropy reinforcement learning (MaxEnt-RL) has become the standard approach to RL due to its beneficial exploration properties. Traditionally, policies are parameterized using Gaussian distributions, which significantly limits their…

Machine Learning · Computer Science 2025-06-11 Onur Celik , Zechu Li , Denis Blessing , Ge Li , Daniel Palenicek , Jan Peters , Georgia Chalvatzaki , Gerhard Neumann

Systems governed by partial differential equations (PDEs) require computationally intensive numerical solvers to predict spatiotemporal field evolution. While machine learning (ML) surrogates offer faster solutions, autoregressive inference…

Machine Learning · Computer Science 2025-07-08 Ishan Khurjekar , Indrashish Saha , Lori Graham-Brady , Somdatta Goswami

Large Language Model (LLM)-guided evolutionary search is increasingly used for automated algorithm discovery, yet most current methods track search progress primarily through executable programs and scalar fitness. Even when…

Computation and Language · Computer Science 2026-05-11 Sichun Luo , Yi Huang , Haochen Luo , Fengyuan Liu , Guanzhi Deng , Lei Li , Qinghua Yao , Zefa Hu , Junlan Feng , Qi Liu

Optimizing static risk-averse objectives in Markov decision processes is difficult because they do not admit standard dynamic programming equations common in Reinforcement Learning (RL) algorithms. Dynamic programming decompositions that…

Optimization and Control · Mathematics 2024-07-04 Jia Lin Hau , Erick Delage , Mohammad Ghavamzadeh , Marek Petrik

Recent work such as AlphaEvolve has shown that combining LLM-driven optimization with evolutionary search can effectively improve programs, prompts, and algorithms across domains. In this paradigm, previously evaluated solutions are reused…

Support vector machine (SVM) is a powerful machine learning algorithm to handle classification tasks. However, the classical SVM is developed for binary problems with the assumption of balanced datasets. Obviously, the multi-class…

Machine Learning · Computer Science 2025-02-21 Zhong-Liang Zhang , Jie Yang , Jian-Ming Ru , Xiao-Xi Zhao , Xing-Gang Luo

The popularity of machine learning has increased the risk of unfair models getting deployed in high-stake applications, such as justice system, drug/vaccination design, and medical diagnosis. Although there are effective methods to train…

Machine Learning · Computer Science 2022-07-14 Mohit Bajaj , Lingyang Chu , Vittorio Romaniello , Gursimran Singh , Jian Pei , Zirui Zhou , Lanjun Wang , Yong Zhang

Machine learning models can make critical errors that are easily hidden within vast amounts of data. Such errors often run counter to rules based on human intuition. However, rules based on human knowledge are challenging to scale or to…

Machine Learning · Computer Science 2023-06-08 Aaditya Naik , Yinjun Wu , Mayur Naik , Eric Wong

In this paper, we consider stochastic versions of three classical growth models given by ordinary differential equations (ODEs). Indeed we use stochastic versions of Von Bertalanffy, Gompertz, and Logistic differential equations as models.…

Applications · Statistics 2023-12-22 F. Baltazar-Larios , F. J. Delgado-Vences , A. Ornelas Vargas

Local Interpretable Model-Agnostic Explanations (LIME) is a popular method to perform interpretability of any kind of Machine Learning (ML) model. It explains one ML prediction at a time, by learning a simple linear model around the…

Machine Learning · Computer Science 2022-02-09 Giorgio Visani , Enrico Bagli , Federico Chesani

Proteins are shaped by gradual evolution under biophysical and functional constraints. Protein language models learn rich evolutionary constraints from large-scale sequences, and discrete diffusion-based protein language models~(\eg, DPLMs)…

Machine Learning · Computer Science 2026-05-14 Xinyou Wang , Liang Hong , Jiasheng Ye , Zaixiang Zheng , Yu Li , Shujian Huang , Quanquan Gu

To ensure the trustworthiness and interpretability of AI systems, it is essential to align machine learning models with human domain knowledge. This can be a challenging and time-consuming endeavor that requires close communication between…

Machine Learning · Computer Science 2025-04-01 Alexander Koebler , Ingo Thon , Florian Buettner

This paper addresses trust issues created from the ubiquity of black box algorithms and surrogate explainers in Explainable Intrusion Detection Systems (X-IDS). While Explainable Artificial Intelligence (XAI) aims to enhance transparency,…

Cryptography and Security · Computer Science 2024-01-19 Jesse Ables , Nathaniel Childers , William Anderson , Sudip Mittal , Shahram Rahimi , Ioana Banicescu , Maria Seale

While the need for interpretable machine learning has been established, many common approaches are slow, lack fidelity, or hard to evaluate. Amortized explanation methods reduce the cost of providing interpretations by learning a global…

Machine Learning · Statistics 2021-03-03 Neil Jethani , Mukund Sudarshan , Yindalon Aphinyanaphongs , Rajesh Ranganath

Understanding the business cycle is crucial for building economic stability, guiding business planning, and informing investment decisions. The business cycle refers to the recurring pattern of expansion and contraction in economic activity…

Machine Learning · Computer Science 2024-06-17 Elvys Linhares Pontes , Mohamed Benjannet , Raymond Yung