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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.

169,181 papers · 148 categories

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137274410547 · May 202619922001200920182026
48 results for universal risk bounds

Study excess risk in statistical inference with transformations.

problem Excess risk in estimating random variables from feature vectors and transformations.
method Characterize lossless transformations, develop test statistics, and information-theoretic bounds.
result Strongly consistent partitioning test statistic for lossless transformations.

A new sector classification method outperforms existing ones in risk-adjusted returns.

problem Subjective sector classification heuristics like GICS and NAICS are not optimal.
method Learned sector classification using hierarchical clustering and reIndexer evaluation tool.
result 17-sector learned sector universe outperforms GICS and NAICS in backtests.

Develops a new method for building data-driven portfolios with a target risk-return.

problem Building a portfolio with a specific risk-return level.
method Applies LSTM to select the best predictor for portfolio construction and uses predictive threshold-based portfolios (TBPs) to target specific risk-return levels.
result Thresholds play a dominant role in characterizing risk, return, and prediction accuracy of the subset.

Proves DCNNs with expansive convolution are strongly universally consistent.

problem Theoretical consistency of deep convolutional neural networks (DCNNs).
method Empirical risk minimization on DCNNs with expansive convolution (with zero-padding).
result DCNNs with expansive convolution are strongly universally consistent.

Diversified risk parity strategies outperform equally-weighted portfolios in various asset universes.

problem Finding optimal portfolio allocations that balance risk and reward.
method Integrates various reward-risk measures and generic allocation rules into diversified risk parity.
result Diversified reward-risk parity strategies exhibit higher average returns, Sharpe ratios, and Calmar ratios compared to equally-weighted risk portfolios.

This paper analyzes M-estimators under infinite-variance noise in high dimensions.

problem High-dimensional M-estimation with infinite-variance noise.
method Study of the Fenchel conjugate domain and its impact on risk.
result Exact risk of M-estimators under infinite-variance noise is derived.

Paper generalizes Gaussian universality and CGMT to dependent data, impacting data augmentation in high-dimensional logistic regression.

problem Limitation of Gaussian universality and CGMT in handling dependent data.
method Generalizes Gaussian universality and CGMT to dependent data (block dependence, m-dependence, mixing). Establishes a novel CGMT framework.
result Gaussian universality holds for high-dimensional logistic regression under various types of dependence.

Theoretical limits on verifying self-improving systems without risking unbounded utility.

problem Formalizing and proving the limits of safety verification for self-improving systems.
method Developed dual conditions and used Holder's inequality, NP counting method, and Lipschitz bounds to establish impossibility and ceiling results.
result A classifier-based safety gate cannot simultaneously permit unbounded beneficial self-modification and bounded cumulative risk.

We present an information-theoretic framework for bounding the number of labeled samples needed to train a classifier in a parametric Bayesian setting. We derive bounds on the average LpL_p distance between the learned classifier and the true maximum a posteriori classifier, which are well-established surrogates for th…

2016-05-08abs ↗pdf ↗

This paper studies universal rates of ERM for binary classification under agnostic learning.

problem The challenge of achieving universal rates of ERM for binary classification under agnostic learning.
method The paper explores the agnostic universal rates of ERM for binary classification, revealing three possible rates: ene^{-n}, o(n1/2)o(n^{-1/2}), or arbitrarily slow.
result The paper provides a complete characterization of which concept classes fall into each of the three categories of agnostic universal rates.

Study on adversarial perturbations for uniformly distributed binary inputs.

problem Understanding adversarial risk and robustness for binary classification problems.
method Taxonomy of adversarial definitions, analysis of specific algorithms, application of isoperimetric inequality and central limit theorem.
result Inherent bounds on adversarial risk and robustness for binary classification problems, showing vulnerability to small perturbations.

Paper introduces a new method for risk-sensitive investment management using RL.

problem Risk-sensitive portfolio management with unknown model parameters.
method Combines RL and risk-sensitive stochastic control with Gaussian perturbations for exploration.
result Endogenous relative-entropy regularization and optimal investment strategy derived.

The study uncovers the breakdown of Gaussian universality in high-dimensional empirical risk minimization.

problem Understanding the breakdown of Gaussian universality in high-dimensional empirical risk minimization.
method Extending the Convex Gaussian Min-Max Theorem to non-Gaussian settings, deriving asymptotic min-max characterizations, and proving asymptotic equivalence of regularizers.
result The projection of the ERM estimator onto a test covariate approximately follows a Gaussian convolution under certain conditions.

Novel approach to universal online learning for bounded losses, closing open problems.

problem Characterizing processes for universal online learning under non-i.i.d. conditions.
method Characterization of processes admitting strong and weak universal learning, introduction of optimistically universal learning rule.
result Introduction of a novel 1NN algorithm that is optimistically universal for bounded losses.

The signal-noise ratio of a portfolio of p assets, its expected return divided by its risk, is couched as an estimation problem on the sphere. When the portfolio is built using noisy data, the expected value of the signal-noise ratio is bounded from above via a Cramer-Rao bound, for the case of Gaussian returns. The bo…

2014-09-21abs ↗pdf ↗

New findings show Gaussian universality breaks down in high-dimensional linear factor mixtures.

problem The limitations of Gaussian universality in high-dimensional classification.
method Characterization of empirical risk minimization for classification under linear factor mixture models.
result Gaussian universality breaks down under high-dimensional linear factor mixtures.

Researchers found that avoiding synthetic data generation prevents model collapse in machine learning.

problem Model collapse in machine learning where models degenerate over generations.
method Comparing discard and augment workflows, focusing on Linear Regression.
result Theoretical evidence shows that for Linear Regression, test risk is bounded by π²/6 of original data alone.

Minimum width for ReLU networks to approximate L^p functions is max(d_x+1, d_y).

problem Characterizing the minimum width for ReLU networks to approximate L^p functions.
method Analyzing networks with ReLU activation functions and proving the minimum width required.
result The minimum width required for the universal approximation of L^p functions is exactly max(d_x+1, d_y).

Study of collapsed manifolds with bounded Ricci curvature and non-collapsed universal cover.

problem Understanding collapsed manifolds with specific Ricci curvature properties.
method Ricci flow techniques applied to non-collapsed universal cover.
result Partial extension of nilpotent structural results to global Ricci bounded covering geometry.

In analogy with the vector bundle theory we define universal and strongly universal Lefschetz fibrations over bounded surfaces. After giving a characterization of these fibrations we construct very special strongly universal Lefschetz fibrations when the fiber is the torus or an orientable surface with connected bounda…

2011-06-17abs ↗pdf ↗

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.

Within a statistical learning setting, we propose and study an iterative regularization algorithm for least squares defined by an incremental gradient method. In particular, we show that, if all other parameters are fixed a priori, the number of passes over the data (epochs) acts as a regularization parameter, and prov…

2014-04-30abs ↗pdf ↗

New framework for conditional risk minimization using optimal transport.

problem High-stakes decisions with side information, especially economic conditions.
method Universal framework based on union-ball formulation in optimal transport.
result Offers interpretability, tractability, and scalability for various risk functionals.

Data augmentation affects estimates' uncertainty and distribution in complex ways.

problem Understanding how data augmentation impacts the variance and limiting distribution of estimates.
method Developed an adaptation of Lindeberg's technique for block dependence.
result Data augmentation can increase rather than decrease uncertainty, and it may shift the double-descent peak of an empirical risk.

Sharp bounds on crash probability and loss from option quotes.

problem Uncertainty in risk-neutral crash probability and conditional loss from option data.
method Adaptive hull algorithm to recover probability-loss polygon; linear system for identified set.
result Complete put wing lowers median transformed area by 5.4-18.2% relative to local strikes, filling 63.40% of benchmark.

The paper tightens bounds on distances between Reeb graphs.

problem Certifying quasi-universality of distances between Reeb graphs.
method Establishes tight bi-Lipschitz bounds for various distances.
result Proves strict universality of the functional contortion distance for contour trees and coincides with interleaving distance for merge trees.

Universal algorithm for online convex optimization with optimal regret bounds.

problem Designing a universal algorithm for online convex optimization that works for multiple types of loss functions.
method Maler algorithm: runs multiple learning algorithms in parallel and selects the best one.
result Achieves optimal regret bounds for general convex, exponentially concave, and strongly convex functions.

We discuss when and why custom multi-factor risk models are warranted and give source code for computing some risk factors. Pension/mutual funds do not require customization but standardization. However, using standardized risk models in quant trading with much shorter holding horizons is suboptimal: 1) longer horizon …

2014-09-09abs ↗pdf ↗

Universal MLPs with a single hidden layer can learn any function.

problem Learning on various data structures like sequences, images, sets, and graphs.
method Using group theory, the paper proves the universality of a broad class of equivariant MLPs with a single hidden layer.
result Having a hidden layer on which the group acts regularly is sufficient for universal equivariance (invariance).

Unified framework for proving generalization bounds in machine learning.

problem Proving generalization bounds for machine learning algorithms.
method Conditional mutual information (CMI) framework to express and optimize bounds.
result Unified framework for proving generalization bounds in the realizable setting.

New insights into model robustness for random features and NTK models.

problem Understanding and distinguishing robustness in machine learning models.
method Analyzing empirical risk minimization in random features and NTK models.
result Random features models are not robust under any degree of over-parameterization, even when satisfying the universal law of robustness.

Investment managers assess new assets against a reference universe, identifying four criteria for usefulness.

problem Determining the usefulness of a new asset in an investment portfolio.
method Identifying four criteria for asset usefulness, quantifying each criterion with scalable algorithms.
result New assets must provide incremental diversification and predictability to be useful.

MAT combines meta-learning and adversarial training to defend against universal patches.

problem Defending against universal patches that fool models in various contexts.
method Meta adversarial training (MAT) integrates meta-learning with adversarial training.
result MAT increases robustness against universal patch attacks on image classification and traffic-light detection.