pwc-archive/papers-with-abstracts huggingface dataset:
Deep learning interpretability for rough volatility
Authors: Bo Yuan, Damiano Brigo, Antoine Jacquier, Nicola Pede
Date: 2024-11-28 00:00:00
Tasks: Deep Learning

Deep learning methods have become a widespread toolbox for pricing and calibration of financial models. While they often provide new directions and research results, their `black box' nature also results in a lack of interpretability. We provide a detailed interpretability analysis of these methods in the context of rough volatility - a new class of volatility models for Equity and FX markets. Our work sheds light on the neural network learned inverse map between the rough volatility model parameters, seen as mathematical model inputs and network outputs, and the resulting implied volatility across strikes and maturities, seen as mathematical model outputs and network inputs. This contributes to building a solid framework for a safer use of neural networks in this context and in quantitative finance more generally.
A general framework for pricing and hedging under local viability
Authors: Huy N. Chau, Miklos Rasonyi
Date: 2024-11-28 00:00:00

In this paper, a new approach for solving the problems of pricing and hedging derivatives is introduced in a general frictionless market setting. The method is applicable even in cases where an equivalent local martingale measure fails to exist. Our main results include a new superhedging duality for American options when wealth processes can be negative and trading strategies are subject to a cone constraint. This answers one of the questions raised by Fernholz, Karatzas and Kardaras.
Self-protection and insurance demand with convex premium principles
Authors: Qiqi Li, Wei Wang, Yiying Zhang
Date: 2024-11-29 00:00:00

In economic analysis, rational decision-makers often take actions to reduce their risk exposure. These actions include purchasing market insurance and implementing prevention measures to modify the shape of the loss distribution. Under the assumption that the insureds' actions are fully observed by the insurer, this paper investigates the interaction between self-protection and insurance demand when insurance premiums are determined by convex premium principles within the framework of distortion risk measures. Specifically, the insured selects an optimal proportional insurance share and prevention effort to minimize the risk measure of their end-of-period exposure. We explicitly characterize the optimal combination of prevention effort and insurance demand in a self-protection model when the insured adopts tail value-at-risk or a subclass with strictly concave distortion functions. Additionally, we conduct comparative static analyses to illustrate our main findings under various premium structures, risk aversion levels, and loss distributions. Our results indicate that market insurance and self-protection are complementary, supporting classical insights from the literature regarding corner insurance policies (i.e., null and full insurance) in the absence of ex ante moral hazard. Finally, we consider the effects of moral hazard on the interaction between self-protection and insurance demand. Our findings show that ex ante moral hazard shifts the complementary effect into substitution effect.
Unleashing the Power of Data Synthesis in Visual Localization
Authors: Sihang Li, Siqi Tan, Bowen Chang, Jing Zhang, Chen Feng, Yiming Li
Date: 2024-11-28 00:00:00
Tasks: Deblurring, Visual Localization

Visual localization, which estimates a camera's pose within a known scene, is a long-standing challenge in vision and robotics. Recent end-to-end methods that directly regress camera poses from query images have gained attention for fast inference. However, existing methods often struggle to generalize to unseen views. In this work, we aim to unleash the power of data synthesis to promote the generalizability of pose regression. Specifically, we lift real 2D images into 3D Gaussian Splats with varying appearance and deblurring abilities, which are then used as a data engine to synthesize more posed images. To fully leverage the synthetic data, we build a two-branch joint training pipeline, with an adversarial discriminator to bridge the syn-to-real gap. Experiments on established benchmarks show that our method outperforms state-of-the-art end-to-end approaches, reducing translation and rotation errors by 50% and 21.6% on indoor datasets, and 35.56% and 38.7% on outdoor datasets. We also validate the effectiveness of our method in dynamic driving scenarios under varying weather conditions. Notably, as data synthesis scales up, our method exhibits a growing ability to interpolate and extrapolate training data for localizing unseen views. Project Page: https://ai4ce.github.io/RAP/
ARMOR: Egocentric Perception for Humanoid Robot Collision Avoidance and Motion Planning
Authors: Daehwa Kim, Mario Srouji, Chen Chen, Jian Zhang
Date: 2024-11-30 00:00:00
Tasks: Collision Avoidance, Imitation Learning, Motion Planning

Humanoid robots have significant gaps in their sensing and perception, making it hard to perform motion planning in dense environments. To address this, we introduce ARMOR, a novel egocentric perception system that integrates both hardware and software, specifically incorporating wearable-like depth sensors for humanoid robots. Our distributed perception approach enhances the robot's spatial awareness, and facilitates more agile motion planning. We also train a transformer-based imitation learning (IL) policy in simulation to perform dynamic collision avoidance, by leveraging around 86 hours worth of human realistic motions from the AMASS dataset. We show that our ARMOR perception is superior against a setup with multiple dense head-mounted, and externally mounted depth cameras, with a 63.7% reduction in collisions, and 78.7% improvement on success rate. We also compare our IL policy against a sampling-based motion planning expert cuRobo, showing 31.6% less collisions, 16.9% higher success rate, and 26x reduction in computational latency. Lastly, we deploy our ARMOR perception on our real-world GR1 humanoid from Fourier Intelligence. We are going to update the link to the source code, HW description, and 3D CAD files in the arXiv version of this text.
Scaling Particle Collision Data Analysis
Authors: Hengkui Wu, Panpan Chi, Yongfeng Zhu, Liujiang Liu, Shuyang Hu, Yuexin Wang, Chen Zhou, Qihao Wang, Yingsi Xin, Bruce Liu, Dahao Liang, Xinglong Jia, Manqi Ruan
Date: 2024-11-28 00:00:00

For decades, researchers have developed task-specific models to address scientific challenges across diverse disciplines. Recently, large language models (LLMs) have shown enormous capabilities in handling general tasks; however, these models encounter difficulties in addressing real-world scientific problems, particularly in domains involving large-scale numerical data analysis, such as experimental high energy physics. This limitation is primarily due to BPE tokenization's inefficacy with numerical data. In this paper, we propose a task-agnostic architecture, BBT-Neutron, which employs a binary tokenization method to facilitate pretraining on a mixture of textual and large-scale numerical experimental data. We demonstrate the application of BBT-Neutron to Jet Origin Identification (JoI), a critical categorization challenge in high-energy physics that distinguishes jets originating from various quarks or gluons. Our results indicate that BBT-Neutron achieves comparable performance to state-of-the-art task-specific JoI models. Furthermore, we examine the scaling behavior of BBT-Neutron's performance with increasing data volume, suggesting the potential for BBT-Neutron to serve as a foundational model for particle physics data analysis, with possible extensions to a broad spectrum of scientific computing applications for Big Science experiments, industrial manufacturing and spacial computing. The project code is available at https://github.com/supersymmetry-technologies/bbt-neutron.
BGM: Background Mixup for X-ray Prohibited Items Detection
Authors: Weizhe Liu, Renshuai Tao, Hongguang Zhu, YunDa Sun, Yao Zhao, Yunchao Wei
Date: 2024-11-30 00:00:00
Tasks: Data Augmentation, Image Augmentation

Prohibited item detection is crucial for ensuring public safety, yet current X-ray image-based detection methods often lack comprehensive data-driven exploration. This paper introduces a novel data augmentation approach tailored for prohibited item detection, leveraging unique characteristics inherent to X-ray imagery. Our method is motivated by observations of physical properties including: 1) X-ray Transmission Imagery: Unlike reflected light images, transmitted X-ray pixels represent composite information from multiple materials along the imaging path. 2) Material-based Pseudo-coloring: Pseudo-color rendering in X-ray images correlates directly with material properties, aiding in material distinction. Building on a novel perspective from physical properties, we propose a simple yet effective X-ray image augmentation technique, Background Mixup (BGM), for prohibited item detection in security screening contexts. The essence is the rich background simulation of X-ray images to induce the model to increase its attention to the foreground. The approach introduces 1) contour information of baggage and 2) variation of material information into the original image by Mixup at patch level. Background Mixup is plug-and-play, parameter-free, highly generalizable and provides an effective solution to the limitations of classical visual augmentations in non-reflected light imagery. When implemented with different high-performance detectors, our augmentation method consistently boosts performance across diverse X-ray datasets from various devices and environments. Extensive experimental results demonstrate that our approach surpasses strong baselines while maintaining similar training resources.
Automatic Differentiation-based Full Waveform Inversion with Flexible Workflows
Authors: Feng Liu, Haipeng Li, Guangyuan Zou, Junlun Li
Date: 2024-11-30 00:00:00
Tasks: Dynamic Time Warping

Full waveform inversion (FWI) is able to construct high-resolution subsurface models by iteratively minimizing discrepancies between observed and simulated seismic data. However, its implementation can be rather involved for complex wave equations, objective functions, or regularization. Recently, automatic differentiation (AD) has proven to be effective in simplifying solutions of various inverse problems, including FWI. In this study, we present an open-source AD-based FWI framework (ADFWI), which is designed to simplify the design, development, and evaluation of novel approaches in FWI with flexibility. The AD-based framework not only includes forword modeling and associated gradient computations for wave equations in various types of media from isotropic acoustic to vertically or horizontally transverse isotropic elastic, but also incorporates a suite of objective functions, regularization techniques, and optimization algorithms. By leveraging state-of-the-art AD, objective functions such as soft dynamic time warping and Wasserstein distance, which are difficult to apply in traditional FWI are also easily integrated into ADFWI. In addition, ADFWI is integrated with deep learning for implicit model reparameterization via neural networks, which not only introduces learned regularization but also allows rapid estimation of uncertainty through dropout. To manage high memory demands in large-scale inversion associated with AD, the proposed framework adopts strategies such as mini-batch and checkpointing. Through comprehensive evaluations, we demonstrate the novelty, practicality and robustness of ADFWI, which can be used to address challenges in FWI and as a workbench for prompt experiments and the development of new inversion strategies.
DroidCall: A Dataset for LLM-powered Android Intent Invocation
Authors: Weikai Xie, Li Zhang, Shihe Wang, Rongjie Yi, Mengwei Xu
Date: 2024-11-30 00:00:00
Tasks: Natural Language Understanding

The growing capabilities of large language models in natural language understanding significantly strengthen existing agentic systems. To power performant on-device mobile agents for better data privacy, we introduce DroidCall, the first training and testing dataset for accurate Android intent invocation. With a highly flexible and reusable data generation pipeline, we constructed 10k samples in DroidCall. Given a task instruction in natural language, small language models such as Qwen2.5-3B and Gemma2-2B fine-tuned with DroidCall can approach or even surpass the capabilities of GPT-4o for accurate Android intent invocation. We also provide an end-to-end Android app equipped with these fine-tuned models to demonstrate the Android intent invocation process. The code and dataset are available at https://github.com/UbiquitousLearning/DroidCall.
Free and Customizable Code Documentation with LLMs: A Fine-Tuning Approach
Authors: Sayak Chakrabarty, Souradip Pal
Date: 2024-12-01 00:00:00
Tasks: Language Modeling, Language Modelling, Large Language Model

Automated documentation of programming source code is a challenging task with significant practical and scientific implications for the developer community. We present a large language model (LLM)-based application that developers can use as a support tool to generate basic documentation for any publicly available repository. Over the last decade, several papers have been written on generating documentation for source code using neural network architectures. With the recent advancements in LLM technology, some open-source applications have been developed to address this problem. However, these applications typically rely on the OpenAI APIs, which incur substantial financial costs, particularly for large repositories. Moreover, none of these open-source applications offer a fine-tuned model or features to enable users to fine-tune. Additionally, finding suitable data for fine-tuning is often challenging. Our application addresses these issues which is available at https://pypi.org/project/readme-ready/.
Enhancing Perception Capabilities of Multimodal LLMs with Training-Free Fusion
Authors: Zhuokun Chen, Jinwu Hu, Zeshuai Deng, Yufeng Wang, Bohan Zhuang, Mingkui Tan
Date: 2024-12-02 00:00:00
Tasks: Language Modeling, Language Modelling

Multimodal LLMs (MLLMs) equip language models with visual capabilities by aligning vision encoders with language models. Existing methods to enhance the visual perception of MLLMs often involve designing more powerful vision encoders, which requires exploring a vast design space and re-aligning each potential encoder with the language model, resulting in prohibitively high training costs. In this paper, we introduce VisionFuse, a novel integration framework that efficiently utilizes multiple vision encoders from off-the-shelf MLLMs to enhance visual perception without requiring additional training. Our approach is motivated by the observation that different MLLMs tend to focus on distinct regions given the same query and image. Moreover, we find that the feature distributions of vision encoders within an MLLM family, a group of MLLMs sharing the same pretrained LLM, are highly aligned. Building on these insights, VisionFuse enriches the visual context by concatenating the tokens generated by the vision encoders of selected MLLMs within a family. By merging the parameters of language models from these MLLMs, VisionFuse allows a single language model to align with various vision encoders, significantly reducing deployment overhead. We conduct comprehensive evaluations across multiple multimodal benchmarks using various MLLM combinations, demonstrating substantial improvements in multimodal tasks. Notably, when integrating MiniGemini-8B and SLIME-8B, VisionFuse achieves an average performance increase of over 4%.
A Comprehensive Guide to Explainable AI: From Classical Models to LLMs
Authors: Weiche Hsieh, Ziqian Bi, Chuanqi Jiang, Junyu Liu, Benji Peng, Sen Zhang, Xuanhe Pan, Jiawei Xu, Jinlang Wang, Keyu Chen, Pohsun Feng, Yizhu Wen, Xinyuan Song, Tianyang Wang, Ming Liu, Junjie Yang, Ming Li, Bowen Jing, Jintao Ren, Junhao Song, Hong-Ming Tseng, Yichao Zhang, Lawrence K. Q. Yan, Qian Niu, Silin Chen, Yunze Wang, Chia Xin Liang
Date: 2024-12-01 00:00:00
Tasks: Causal Inference, counterfactual, Decision Making, Explainable artificial intelligence, Explainable Artificial Intelligence (XAI), Fairness, Federated Learning

Explainable Artificial Intelligence (XAI) addresses the growing need for transparency and interpretability in AI systems, enabling trust and accountability in decision-making processes. This book offers a comprehensive guide to XAI, bridging foundational concepts with advanced methodologies. It explores interpretability in traditional models such as Decision Trees, Linear Regression, and Support Vector Machines, alongside the challenges of explaining deep learning architectures like CNNs, RNNs, and Large Language Models (LLMs), including BERT, GPT, and T5. The book presents practical techniques such as SHAP, LIME, Grad-CAM, counterfactual explanations, and causal inference, supported by Python code examples for real-world applications. Case studies illustrate XAI's role in healthcare, finance, and policymaking, demonstrating its impact on fairness and decision support. The book also covers evaluation metrics for explanation quality, an overview of cutting-edge XAI tools and frameworks, and emerging research directions, such as interpretability in federated learning and ethical AI considerations. Designed for a broad audience, this resource equips readers with the theoretical insights and practical skills needed to master XAI. Hands-on examples and additional resources are available at the companion GitHub repository: https://github.com/Echoslayer/XAI_From_Classical_Models_to_LLMs.
TextSSR: Diffusion-based Data Synthesis for Scene Text Recognition
Authors: Xingsong Ye, Yongkun Du, Yunbo Tao, Zhineng Chen
Date: 2024-12-02 00:00:00
Tasks: Image Generation, Optical Character Recognition (OCR), Scene Text Editing, Scene Text Recognition

Scene text recognition (STR) suffers from the challenges of either less realistic synthetic training data or the difficulty of collecting sufficient high-quality real-world data, limiting the effectiveness of trained STR models. Meanwhile, despite producing holistically appealing text images, diffusion-based text image generation methods struggle to generate accurate and realistic instance-level text on a large scale. To tackle this, we introduce TextSSR: a novel framework for Synthesizing Scene Text Recognition data via a diffusion-based universal text region synthesis model. It ensures accuracy by focusing on generating text within a specified image region and leveraging rich glyph and position information to create the less complex text region compared to the entire image. Furthermore, we utilize neighboring text within the region as a prompt to capture real-world font styles and layout patterns, guiding the generated text to resemble actual scenes. Finally, due to its prompt-free nature and capability for character-level synthesis, TextSSR enjoys a wonderful scalability and we construct an anagram-based TextSSR-F dataset with 0.4 million text instances with complexity and realism. Experiments show that models trained on added TextSSR-F data exhibit better accuracy compared to models trained on 4 million existing synthetic data. Moreover, its accuracy margin to models trained fully on a real-world dataset is less than 3.7%, confirming TextSSR's effectiveness and its great potential in scene text image synthesis. Our code is available at https://github.com/YesianRohn/TextSSR.
R-Bot: An LLM-based Query Rewrite System
Authors: Zhaoyan Sun, Xuanhe Zhou, Guoliang Li
Date: 2024-12-02 00:00:00

Query rewrite is essential for optimizing SQL queries to improve their execution efficiency without changing their results. Traditionally, this task has been tackled through heuristic and learning-based methods, each with its limitations in terms of inferior quality and low robustness. Recent advancements in LLMs offer a new paradigm by leveraging their superior natural language and code comprehension abilities. Despite their potential, directly applying LLMs like GPT-4 has faced challenges due to problems such as hallucinations, where the model might generate inaccurate or irrelevant results. To address this, we propose R-Bot, an LLM-based query rewrite system with a systematic approach. We first design a multi-source rewrite evidence preparation pipeline to generate query rewrite evidences for guiding LLMs to avoid hallucinations. We then propose a hybrid structure-semantics retrieval method that combines structural and semantic analysis to retrieve the most relevant rewrite evidences for effectively answering an online query. We next propose a step-by-step LLM rewrite method that iteratively leverages the retrieved evidences to select and arrange rewrite rules with self-reflection. We conduct comprehensive experiments on widely used benchmarks, and demonstrate the superior performance of our system, R-Bot, surpassing state-of-the-art query rewrite methods.
CPRM: A LLM-based Continual Pre-training Framework for Relevance Modeling in Commercial Search
Authors: Kaixin Wu, Yixin Ji, Zeyuan Chen, Qiang Wang, Cunxiang Wang, Hong Liu, Baijun Ji, Jia Xu, Zhongyi Liu, Jinjie Gu, Yuan Zhou, Linjian Mo
Date: 2024-12-02 00:00:00
Tasks: In-Context Learning, Reading Comprehension

Relevance modeling between queries and items stands as a pivotal component in commercial search engines, directly affecting the user experience. Given the remarkable achievements of large language models (LLMs) in various natural language processing (NLP) tasks, LLM-based relevance modeling is gradually being adopted within industrial search systems. Nevertheless, foundational LLMs lack domain-specific knowledge and do not fully exploit the potential of in-context learning. Furthermore, structured item text remains underutilized, and there is a shortage in the supply of corresponding queries and background knowledge. We thereby propose CPRM (Continual Pre-training for Relevance Modeling), a framework designed for the continual pre-training of LLMs to address these issues. Our CPRM framework includes three modules: 1) employing both queries and multi-field item to jointly pre-train for enhancing domain knowledge, 2) applying in-context pre-training, a novel approach where LLMs are pre-trained on a sequence of related queries or items, and 3) conducting reading comprehension on items to produce associated domain knowledge and background information (e.g., generating summaries and corresponding queries) to further strengthen LLMs. Results on offline experiments and online A/B testing demonstrate that our model achieves convincing performance compared to strong baselines.
CellSeg1: Robust Cell Segmentation with One Training Image
Authors: Peilin Zhou, Bo Du, Yongchao Xu
Date: 2024-12-02 00:00:00
Tasks: Cell Segmentation, Segmentation

Recent trends in cell segmentation have shifted towards universal models to handle diverse cell morphologies and imaging modalities. However, for continuously emerging cell types and imaging techniques, these models still require hundreds or thousands of annotated cells for fine-tuning. We introduce CellSeg1, a practical solution for segmenting cells of arbitrary morphology and modality with a few dozen cell annotations in 1 image. By adopting Low-Rank Adaptation of the Segment Anything Model (SAM), we achieve robust cell segmentation. Tested on 19 diverse cell datasets, CellSeg1 trained on 1 image achieved 0.81 average mAP at 0.5 IoU, performing comparably to existing models trained on over 500 images. It also demonstrated superior generalization in cross-dataset tests on TissueNet. We found that high-quality annotation of a few dozen densely packed cells of varied sizes is key to effective segmentation. CellSeg1 provides an efficient solution for cell segmentation with minimal annotation effort.