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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.

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48 results for information-theoretic divergence

Model financial markets using information theory with a single parameter.

problem Capture the complexity of financial markets with a simple model.
method Derive an idealized model based on four information-theoretic assumptions, minimizing surprisal and divergence.
result The model uses squared radial Ornstein-Uhlenbeck processes for state variables and their sums.

Information theoretic measures (e.g. the Kullback Liebler divergence and Shannon mutual information) have been used for exploring possibly nonlinear multivariate dependencies in high dimension. If these dependencies are assumed to follow a Markov factor graph model, this exploration process is called structure discover…

2016-09-13abs ↗pdf ↗

Novel bounds for SGLD show generalization error decreases with more samples.

problem Understanding the generalization error of SGLD in non-convex optimization.
method Information-theoretic approach focusing on Kullback-Leibler divergence and sub-exponential loss function.
result Time-independent generalization bounds for SGLD, independent of step size and number of iterations.

Unified framework for comparing clusterings from information-theoretic and pair-counting perspectives.

problem Divergent evaluations of unsupervised models due to different clustering similarity measures.
method Developed an analytical framework that unifies pair-counting and information-theoretic clustering similarity measures.
result Unified framework clarifies when and why the two regimes diverge and provides a principled basis for selecting and interpreting clustering similarity measures.

Privacy amplification improved through contraction coefficients and EγE_γ-divergence.

problem Improving privacy guarantees in iterative algorithms.
method Using contraction coefficients derived from EγE_γ-divergence to determine differential privacy parameters.
result Tighter bounds on differential privacy parameters of iterative algorithms.

Develops a new divergence framework that combines ff-divergences and IPMs.

problem Comparing distributions that are not absolutely continuous.
method Introduces (f,Γ)(f,Γ)-divergences as a two-stage mass-redistribution/mass-transport process.
result Improves estimation, learning, and uncertainty quantification in GANs for heavy-tailed distributions.

The paper analyzes the reward improvement of aligned policies in large language models.

problem Optimizing policies in large language models while staying close to a reference policy.
method Information-theoretic analysis and reduction to exponential order statistics.
result Information-theoretic upper bounds on reward improvement are derived.

New bounds study class-specific generalization error in machine learning.

problem Existing generalization theories assume uniform class performance, but in practice, classes vary significantly.
method Developed novel information-theoretic bounds using KL divergence and CMI.
result Theoretical bounds accurately capture complex class-generalization error behavior.

Unified framework connects credit risk metrics with information theory.

problem Disconnection between industry-standard metrics and statistical theory.
method Unified information-theoretic framework, proving IV equals PSI, deriving standard errors, formalizing trade-off, automated binning with XGBoost.
result Unified framework connects IV and PSI, providing statistical foundation for metrics.

New framework for detecting complex interactions in multivariate data.

problem Insufficient pairwise measures fail to capture multivariate data complexities.
method Lattice theory and operator functions to derive higher-order information-theoretic measures.
result Streitberg Information fully characterizes all interactions among dd variables.

We study EγE_γ-divergence contraction and its privacy implications.

problem Analyzing privacy in data processing and algorithms.
method Generalizing Dobrushin's coefficient to EγE_γ-divergence and deriving contraction coefficients.
result Local differential privacy can be expressed in terms of EγE_γ-divergence contraction, leading to precise sample size reductions.

The paper solves portfolio selection using Rényi divergence and optimization.

problem Single-period portfolio selection under CRRA utility.
method Information-theoretic lens, Rényi divergence, Rényi entropy, Blahut-Arimoto-style alternating optimization.
result CRRA portfolio selection is equivalent to a Rényi information-projection problem.

Deep nonlinear models pose a challenge for fitting parameters due to lack of knowledge of the hidden layer and the potentially non-affine relation of the initial and observed layers. In the present work we investigate the use of information theoretic measures such as mutual information and Kullback-Leibler (KL) diverge…

2016-12-17abs ↗pdf ↗

Study measures irreversibility in crypto trends using Kullback-Leibler divergence.

problem Assessing irreversibility in cryptocurrency trends.
method Defined irreversibility index using Kullback-Leibler divergence between uptrend and downtrend distributions.
result Strong irreversibility in all analyzed cryptocurrencies, with trends evolving over time.

The paper develops a theory for identifying the best arm in non-parametric multi-armed bandits with a fixed budget.

problem Identifying the best arm in non-parametric multi-armed bandits with a limited number of trials.
method The paper proposes upper and lower bounds on the average log-probability of misidentification using information-theoretic quantities and a refined analysis of the successive-rejects strategy.
result The paper provides new upper and lower bounds on the average log-probability of misidentification, which generalize existing bounds.

Bounded rationality investigates utility-optimizing decision-makers with limited information-processing power. In particular, information theoretic bounded rationality models formalize resource constraints abstractly in terms of relative Shannon information, namely the Kullback-Leibler Divergence between the agents' pr…

2018-09-04abs ↗pdf ↗

In this paper we formulate in general terms an approach to prove strong consistency of the Empirical Risk Minimisation inductive principle applied to the prototype or distance based clustering. This approach was motivated by the Divisive Information-Theoretic Feature Clustering model in probabilistic space with Kullbac…

2010-04-19abs ↗pdf ↗

The paper applies information theory to financial markets, improving risk management and asset allocation.

problem Improving risk management and asset allocation in financial markets.
method Information-theoretic measures (entropy, mutual information, etc.) applied to financial time series.
result Normalized mutual information (NMI) is a powerful measure of temporal dependence in financial markets.

Paper introduces SDM for detecting LLM hallucinations, improving on entropy tests.

problem Challenges of Large Language Models (LLMs) with non-factual, nonsensical responses.
method Joint clustering on sentence embeddings to measure semantic divergence between prompts and responses.
result SDM framework detects deeper form of arbitrariness in LLM responses.

Unified framework for tractable inference scenarios in machine learning models.

problem Complex inference scenarios in machine learning models.
method Characterization of tractable modular operations over circuits and derivation of a unified framework.
result Unified framework for reasoning about tractable models.

A new test statistic measures discrepancy between conditional distributions.

problem Measuring the discrepancy between two conditional distributions.
method Proposes a Bregman matrix divergence-based statistic that avoids explicit distribution estimation.
result The new statistic inherits high-order statistics and demonstrates utility in multi-task learning, concept drift detection, and feature selection.

Study reveals limits of detecting local geometry in random graphs.

problem Detecting local geometry in random graphs with hidden communities.
method Introduced model and used information-theoretic and computational limits to investigate detection.
result Detection threshold determined at d=Θ~(k2k6/n3)d = \widetildeΘ(k^2 \vee k^6/n^3) for fixed pp.

Formula derived for sample complexity in binary hypothesis testing.

problem Determine the minimum number of samples to distinguish between two distributions.
method Developed a formula for sample complexity in both prior-free and Bayesian settings, using Jensen-Shannon and Hellinger divergences.
result Formula characterizes sample complexity for a wide range of error parameters, up to multiplicative constants.

Unified analysis of KL divergence using shifted composition for sampling.

problem Sampling from target distributions with KL divergence guarantees.
method Shifted composition rule applied to KL divergence, combining local error analysis and Girsanov's theorem.
result Unified KL guarantees for strongly log-concave, weakly log-concave, and log-Sobolev distributions.

The paper improves support recovery in high-dimensional precision matrix estimation using meta learning.

problem Support recovery in high-dimensional precision matrix estimation with reduced sample complexity.
method Pooling samples from different tasks and using an improper 1\ell_1-regularized log-determinant Bregman divergence to estimate a single precision matrix.
result The support of the improperly estimated single precision matrix is equal to the true support union with high probability.

Deep networks become equivalent to linear models in large data regimes.

problem Understanding the behavior of deep neural networks in large data regimes.
method Information-theoretic analysis of fully-trained neural networks in proportional scaling regime.
result Proves deep Gaussian equivalence principle, showing deep networks can be simplified to linear models.

New method uses approximate KLD for intractable likelihood models.

problem Designing experiments for models with intractable likelihoods.
method Derive a lower bound of KLD utility, express it in terms of entropies, and evaluate efficiently.
result Demonstrated the performance of the proposed method through numerical examples.

Mathematical study of excess growth rate connects info theory with finance.

problem Understanding the excess growth rate in portfolio theory.
method Axiomatic characterization theorems of excess growth rate in terms of relative entropy, Jensen's inequality gap, and logarithmic divergence.
result Established rich connections between information theory and finance.