arXiv Machine Learning

Climate-Dyna Deep Hedging for XVAs: Model-Based Reinforcement Learning, Residual Climate HVA, and Hedge-Instrument Discovery

arXiv:2608. 01208v1 Announce Type: cross Abstract: For a trading desk, residual climate hedging valuation adjustment (HVA) is the climate cost left after its inherited hedge and any admissible overlay have been taken into account; it therefore cannot be inferred from a stand-alone stress loss.

arXiv Machine Learning
Aug 11

CODS: Iterative Bellman-Residual Data Selection for Reusable Offline Reinforcement Learning

arXiv:2608. 07719v1 Announce Type: new Abstract: Offline reinforcement learning repeatedly trains policies from a fixed transition pool, making redundant data costly across seeds and hyperparameters, while naive subsampling can remove rare transitions needed for long-horizon credit assignment.

By Ibne Farabi Shihab, Sanjeda Akter, Abu Sa-Adat Mohamed Moon-Im Al Ahsan, Md Najmus Swaqeeb, Anuj Sharma
arXiv Machine Learning
Jul 14

A Control Theory of Predictability in Latent World Models

arXiv:2607. 10362v1 Announce Type: new Abstract: Latent world models are trained to predict future states in a learned representation and are then deployed inside a planner that selects actions by simulating them forward.

By Hanzhe You, Yonggang Zhang, Maohao Ran, Zhiqin Yang, Zhenyuan Zhang, Wei Xue, Jun Song, Xinmei Tian, Yike Guo
arXiv AI
Jun 9

TT-DAC-PS: Twin-Target Deterministic Actor-Critic with Policy Smoothing for Optimal Trade Execution

arXiv:2606. 08379v1 Announce Type: new Abstract: This study addresses the optimal execution of large stock sell programs by introducing TT-DAC-PS (Twin-Target Deterministic Actor-Critic with Policy Smoothing), a deterministic actor-critic architecture that combines twin exponential-moving-average critic targets with pessimistic min backup, TD3-style target policy smoothing noise, delayed actor updates, and conservative Q regularisation to curb overestimation.

By Ilia Zaznov, Atta Badii, Julian Kunkel, Alfonso Dufour
arXiv Machine Learning
Jun 19

When to Trust, How to Distill: Multi-Foundation Model Guidance for Lightweight, Robust Scientific Time Series Forecasting

arXiv:2606. 19363v1 Announce Type: new Abstract: The deployment of Time-Series Foundation Models (TSFMs) in physical sciences is hindered by a critical trade-off: while these models encode rich, universal temporal dynamics, they suffer from severe distributional misalignment when applied zero-shot to specific scientific domains, and their computational cost prohibits deployment in edge-computing sensor networks.

By Rupasree Dey, Abdul Matin, Nathan Orwick, Yao Zhang, Shrideep Pallickara, Sangmi Lee Pallickara