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arXiv research

A locally-built, LLM-digested index of recent arXiv papers in quant finance, geometry/topology, and statistical ML — keyword search served straight from SQLite on this machine.

169,291 papers · 148 categories

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116232348464 · Jun 202019922001200920182026
48 results for fragility analysis

Research shows ESG signals lower exposure to market fragility during stress periods.

problem Market fragility often occurs together, and ESG is associated with reduced exposure.
method Monthly data on S&P 500 constituents from 2014 to 2025, analyzing downside returns, volatility, illiquidity, and cofragility states.
result A one-standard-deviation increase in ESG lowers the probability of severe cofragility by 0.92 percentage points during stress periods.

Interpretation of neural networks is unreliable and sensitive to small changes.

problem Reliable interpretation of deep learning predictions for medical applications.
method Characterization of fragility in feature-importance interpretation methods.
result Small random perturbations can lead to dramatically different interpretations of neural network predictions.

The 2008 financial crisis revealed banking consolidation paradoxically increased systemic fragility and global financial contagion with negligible spatial decay.

problem Fundamental vulnerabilities in interconnected banking systems during the 2008 financial crisis were inadequately addressed by existing frameworks.
method Developed a unified spatial-network framework using spectral analysis of network Laplacian operators combined with spatial difference-in-differences identification.
result Banking consolidation paradoxically increased systemic fragility and global financial contagion with negligible spatial decay.

New research investigates why influence functions are fragile and proposes new validation procedures.

problem Understanding and mitigating the fragility of influence functions in deep learning model explanations.
method Verification of influence functions using various conditions and procedures, including convexity and non-convexity.
result Validation procedures may cause the observed fragility of influence functions.

BN helps learn fragile features, which can improve adversarial robustness.

problem The role of batch normalization in adversarial training and its impact on robustness.
method Investigated the expressiveness of BN in learning robust features compared to random features.
result Adversarially fine-tuning BN layers can result in non-trivial adversarial robustness.

Develops a framework to assess infrastructure reliability under natural and malicious events.

problem Assessing reliability and costs of infrastructure under various hazards.
method Coupling mechanical reliability analyses with economical reliability analyses using probabilistic considerations.
result Indicators of probable cost of failure for infrastructure, aiding safety investments.

A new method uses SVMs and active learning for efficient fragility curve estimation.

problem Estimating fragility curves for structures under seismic and other excitations.
method Support Vector Machines (SVMs) coupled with active learning algorithm.
result Efficient estimation of fragility curves with reduced numerical calculations.

Measuring systemic risk or fragility of financial systems is a ubiquitous task of fundamental importance in analyzing market efficiency, portfolio allocation, and containment of financial contagions. Recent attempts have shown that representing such systems as a weighted graph characterizing the complex web of interact…

2015-05-19abs ↗pdf ↗

Complex products trade through fewer countries, making them more fragile.

problem Fragility in the global economy due to centralized trade networks for complex products.
method Used network science and product complexity theory indicators to analyze trade networks.
result Products with higher complexity trade through fewer countries, making them more fragile.

This study examines deep hedging for S&P 500 options, revealing systematic delta corrections and fragility.

problem Understanding and validating deep hedging strategies for financial options.
method Compared TD3 agents with a Black-Scholes delta hedge, using walk-forward tests and symbolic regression.
result Deep hedging agents learn systematic delta corrections, which can improve performance but are regime-fragile.

We provide a mathematical definition of fragility and antifragility as negative or positive sensitivity to a semi-measure of dispersion and volatility (a variant of negative or positive "vega") and examine the link to nonlinear effects. We integrate model error (and biases) into the fragile or antifragile context. Unli…

2012-08-06abs ↗pdf ↗

Active learning method optimizes seismic fragility curve estimation.

problem Optimizing calls to complex numerical models for fragility curve estimation.
method Importance sampling based active learning for parametric seismic fragility curve estimation.
result The method optimizes the estimation of fragility curves with mathematical rigor.

AI systems that explain their decisions can be monitored for harmful intentions.

problem Monitoring AI systems' decision-making processes for harmful intentions is imperfect and can miss some misbehavior.
method Monitoring the chain of thought (CoT) of AI systems that communicate in human language.
result CoT monitoring is a promising but fragile approach to AI safety.

Study analyzes smart contract adoption under bounded risk, showing stable adoption but fragile financial outcomes.

problem Understanding smart contract adoption in derivative markets under risk constraints.
method Structural theory linked with simulation and real-world validation.
result Adoption intensity is stable but profitability and service outcomes are sensitive to volatility.

CoCos can increase financial fragility in certain network structures.

problem The effectiveness of CoCos in enhancing financial stability depends on the network structure.
method Analysis of phase transitions in a network of interconnected banks.
result CoCos can increase financial fragility under certain network structures.

Study on information cascade fragility under mismatched revealing probabilities.

problem Analyzing the fragility of information cascades in decision-making processes with imperfect knowledge of revealing probabilities.
method Examined sequential decision-making models with players having private information and imitating previous decisions. Studied the effect of a mismatch between players' beliefs and actual revealing probabilities.
result Derived closed-form expressions for optimal learning rates and identified phase transitions in the behavior of asymptotic learning rates.

In this paper we characterise the propensity of big capital investments to systematically deliver poor outcomes as "fragility," a notion suggested by Nassim Taleb. A thing or system that is easily harmed by randomness is fragile. We argue that, contrary to their appearance, big capital investments break easily - i.e. d…

2016-03-04abs ↗pdf ↗

AI-driven investment strategies self-defeat at scale due to signal crowding and erosion.

problem Excess returns from AI-driven investment strategies diminish at scale due to signal crowding and erosion.
method Theoretical model and empirical validation using SEC Form 13F filings and hedge fund return dynamics.
result The alpha half-life of signals decreases significantly with AI adoption, leading to diminishing returns.

Flash crash on Ethereum shows social coordination can destabilize blockchain systems.

problem Interconnected socio-technical systems can be fragile due to social coordination.
method Analyzed the 2017 Ethereum flash-crash to illustrate the fragility of blockchain systems.
result Emergent centralization can lead to catastrophic cascades in interconnected systems.

New method for reliability analysis using multi-fidelity models.

problem Reliability analysis of complex systems with high computational costs.
method Adaptive Multi-fidelity Gaussian Process for Reliability Analysis (AMGPRA) with collective learning function (CLF).
result AMGPRA achieves similar or higher accuracy with reduced computational costs compared to state-of-the-art methods.

FaceSigns embeds a secret watermark in images to authenticate and detect deepfakes.

problem Realistic image and video manipulation threats, especially deepfakes.
method Semi-fragile watermarking using neural networks, robust to face-swapping but fragile to deepfake manipulations.
result FaceSigns can reliably detect deepfake content with high accuracy.

Measures strategy durability through minimum regime performance, revealing trade-offs between efficiency and resilience.

problem Systematic investing strategies are vulnerable to regime changes, affecting their effectiveness and performance.
method Introduces minimum regime performance (MRP) to quantify the durability of systematic strategies, capturing how performance deteriorates under changing market conditions.
result Higher long-term Sharpe ratios do not always correlate with higher MRP, highlighting a new dimension of portfolio fragility.

Paper evaluates whether AI is a bubble or a productivity revolution.

problem Determining if AI investments are a bubble or a sustainable technology.
method Hybrid review and diagnostic framework combining asset pricing foundations and modern econometric methods.
result AI investments show both genuine fundamentals and bubble-like fragilities.

Thompson Sampling achieves independent regret bounds for logistic bandits.

problem Achieving optimal regret bounds for logistic bandits with binary rewards.
method Thompson Sampling applied to logistic bandits with binary rewards.
result Thompson Sampling achieves ildeO(dT) ilde{O}(d\sqrt{T}) regret bound for identical action and coefficient sets.

The World Trade Web (WTW) is a weighted network whose nodes correspond to countries with edge weights reflecting the value of imports and/or exports between countries. In this paper we introduce to this macroeconomic system the notion of extinction analysis, a technique often used in the analysis of ecosystems, for the…

2011-04-22abs ↗pdf ↗

Principal Component Analysis (PCA) has wide applications in machine learning, text mining and computer vision. Classical PCA based on a Gaussian noise model is fragile to noise of large magnitude. Laplace noise assumption based PCA methods cannot deal with dense noise effectively. In this paper, we propose Cauchy Princ…

2014-12-19abs ↗pdf ↗

New method improves robustness of double robust estimators under complete misspecification.

problem Improper performance of double robust estimators when all nuisance functions are misspecified.
method DR+ACC, an adaptive correction clipping method.
result DR+ACC ensures bounded error and maintains semiparametric efficiency.

Interpolating models can have heavy-tailed risk, leading to rare but severe errors.

problem Interpolating models' tail risk is poorly understood, affecting rare but impactful errors.
method Large-deviation methods to study the fragility of high-dimensional linear interpolators.
result Ridgeless regression exhibits heavy-tailed risk, while ridge-regularized estimators have better tail behavior.

Study of particle systems with singular interaction through hitting times, revealing new phenomena and equilibrium strategies.

problem Understanding and predicting times of fragility in particle systems with strategic connections.
method General driving processes, inhomogeneous connection structures, strategic particle connections, max-plus algebra.
result Characterization of times of fragility and system regularization in equilibrium.

Agent-based model shows interbank market's fragility and resilience to crises.

problem Stability of interbank lending market during financial crises.
method Agent-based network model with various pro-cyclical triggers.
result Systemic fragility up to 2008, resilience after 2008, increased crisis speed in 2011.