arXiv subjects

Guang Zhang

Publications and source records attributed to Guang Zhang.

27 records · Page 2Linked to original sources

arXiv2025

FinRipple: Aligning Large Language Models with Financial Market for Event Ripple Effect Awareness

Financial markets exhibit complex dynamics where localized events trigger ripple effects across entities. Previous event studies, constrained by static single-company analyses and simplistic assumptions, fail to capture these ripple effects. While large language models (LLMs) offer emergent reasoning capabilities, their direct application falters due to structural market unawareness and limited capacity to analyze ripple effects. We propose FinRipple, an elegant framework that empowers LLMs with the ability to analyze ripple effects through financial theory-guided large-scale reinforcement learning. We begin by relaxing the assumptions of previous methods, incorporating a time-varying knowledge graph to accurately represent market structure. By seamlessly integrating classical asset pricing theory, we align the LLM with the market, enabling it to predict ripple effects. To the best of our knowledge, we are the first to provide a standardized definition of ripple effect prediction, a task that is extremely important yet unexplored in the financial domain. Extensive experiments demonstrate that FinRipple provides a promising solution to this task.

cs.SI↗

arXiv2024

FinFlier: Automating Graphical Overlays for Financial Visualizations with Knowledge-Grounding Large Language Model

Graphical overlays that layer visual elements onto charts, are effective to convey insights and context in financial narrative visualizations. However, automating graphical overlays is challenging due to complex narrative structures and limited understanding of effective overlays. To address the challenge, we first summarize the commonly used graphical overlays and narrative structures, and the proper correspondence between them in financial narrative visualizations, elected by a survey of 1752 layered charts with corresponding narratives. We then design FinFlier, a two-stage innovative system leveraging a knowledge-grounding large language model to automate graphical overlays for financial visualizations. The text-data binding module enhances the connection between financial vocabulary and tabular data through advanced prompt engineering, and the graphics overlaying module generates effective overlays with narrative sequencing. We demonstrate the feasibility and expressiveness of FinFlier through a gallery of graphical overlays covering diverse financial narrative visualizations. Performance evaluations and user studies further confirm system's effectiveness and the quality of generated layered charts.

cs.HC↗

arXiv2024

Inflight Performance and Calibrations of the Lyman-alpha Solar Telescope on board the Advanced Space-based Solar Observatory

The Lyman-alpha Solar Telescope (LST) on board the Advanced Space-based Solar Observatory (ASO-S) is the first payload to image the full solar disk and the solar corona in both white-light (WL) and ultraviolet (UV) H I Lya, extending up to 2.5 solar radii (Rs). Since the launch of the ASO-S on 9 October 2022, LST has captured various significant solar activities including flares, prominences, coronal mass ejections (CMEs). LST covers different passbands of 121.6 nm, 360 nm and 700 nm. The Lya Solar Disk Imager (SDI) has a field of view (FOV) of 38.4 arcmin and a spatial resolution of around 9.5 arcsec, while the White-Light Solar Telescope (WST) has a FOV of 38.43 arcmin and a spatial resolution of around 3.0 arcsec. The FOV of the Lya Solar Corona Imager (SCI) reaches 81.1 arcmin and its spatial resolution is 4.3 arcsec. The stray-light level in the 700 nm waveband is about 7.8e-6 MSB (mean solar brightness) at 1.1 Rs and 7.6e-7 MSB at 2.5 Rs, and in the Lya waveband it is around 4.3e-3 MSB at 1.1 Rs and 4.1e-4 MSB at 2.5 Rs. This article will detail the results from on-orbit tests and calibrations.

astro-ph.SR↗

arXiv2024

ClimSim-Online: A Large Multi-scale Dataset and Framework for Hybrid ML-physics Climate Emulation

Modern climate projections lack adequate spatial and temporal resolution due to computational constraints, leading to inaccuracies in representing critical processes like thunderstorms that occur on the sub-resolution scale. Hybrid methods combining physics with machine learning (ML) offer faster, higher fidelity climate simulations by outsourcing compute-hungry, high-resolution simulations to ML emulators. However, these hybrid ML-physics simulations require domain-specific data and workflows that have been inaccessible to many ML experts. As an extension of the ClimSim dataset (Yu et al., 2024), we present ClimSim-Online, which also includes an end-to-end workflow for developing hybrid ML-physics simulators. The ClimSim dataset includes 5.7 billion pairs of multivariate input/output vectors, capturing the influence of high-resolution, high-fidelity physics on a host climate simulator's macro-scale state. The dataset is global and spans ten years at a high sampling frequency. We provide a cross-platform, containerized pipeline to integrate ML models into operational climate simulators for hybrid testing. We also implement various ML baselines, alongside a hybrid baseline simulator, to highlight the ML challenges of building stable, skillful emulators. The data (https://huggingface.co/datasets/LEAP/ClimSim_high-res) and code (https://leap-stc.github.io/ClimSim and https://github.com/leap-stc/climsim-online) are publicly released to support the development of hybrid ML-physics and high-fidelity climate simulations.

cs.LG↗

arXiv2021

Hermite Polynomial-based Valuation of American Options with General Jump-Diffusion Processes

We present a new approximation scheme for the price and exercise policy of American options. The scheme is based on Hermite polynomial expansions of the transition density of the underlying asset dynamics and the early exercise premium representation of the American option price. The advantages of the proposed approach are threefold. First, our approach does not require the transition density and characteristic functions of the underlying asset dynamics to be attainable in closed form. Second, our approach is fast and accurate, while the prices and exercise policy can be jointly produced. Third, our approach has a wide range of applications. We show that the proposed approximations of the price and optimal exercise boundary converge to the true ones. We also provide a numerical method based on a step function to implement our proposed approach. Applications to nonlinear mean-reverting models, double mean-reverting models, Merton's and Kou's jump-diffusion models are presented and discussed.

q-fin.CP↗

arXiv2021

Generalized Opinion Dynamics Model for Social Trust Networks in Opinion Maximization

In this paper, we propose a generalized opinion dynamics model (GODM), which can dynamically compute each person's expressed opinion, to solve the internal opinion maximization problem for social trust networks. In the model, we propose a new, reasonable and interpretable confidence index, which is determined by both person's social status and the evaluation around him. By using the theory of diagonally dominant, we obtain the optimal analytic solution of the Nash equilibrium with maximum overall opinion. We design a novel algorithm to maximize the overall with given budget by modifying the internal opinions of people in the social trust network, and prove its optimality both from the algorithm itself and the traditional optimization algorithm-ADMM algorithms with $l_1$-regulations. A series of experiments are conducted, and the experimental results show that our method is superior to the state-of-the-art in four datasets. The average benefit has promoted $67.5\%$, $83.2\%$, $31.5\%$, and $33.7\%$ on four datasets, respectively.

math.CO↗

arXiv2020

Pairs Trading with Nonlinear and Non-Gaussian State Space Models

This paper studies pairs trading using a nonlinear and non-Gaussian state-space model framework. We model the spread between the prices of two assets as an unobservable state variable and assume that it follows a mean-reverting process. This new model has two distinctive features: (1) The innovations to the spread is non-Gaussianity and heteroskedastic. (2) The mean reversion of the spread is nonlinear. We show how to use the filtered spread as the trading indicator to carry out statistical arbitrage. We also propose a new trading strategy and present a Monte Carlo based approach to select the optimal trading rule. As the first empirical application, we apply the new model and the new trading strategy to two examples: PEP vs KO and EWT vs EWH. The results show that the new approach can achieve a 21.86% annualized return for the PEP/KO pair and a 31.84% annualized return for the EWT/EWH pair. As the second empirical application, we consider all the possible pairs among the largest and the smallest five US banks listed on the NYSE. For these pairs, we compare the performance of the proposed approach with that of the existing popular approaches, both in-sample and out-of-sample. Interestingly, we find that our approach can significantly improve the return and the Sharpe ratio in almost all the cases considered.

q-fin.PM↗

arXiv2019

Water harvesting from Soils by Solar-to-Heat Induced Evaporation and Capillary Water Migration

Fresh water scarcity is one of the critical challenges for global sustainable development. Several novel water resources such as passive seawater solar desalination and atmospheric water harvesting have made some progress in recent years. However, no investigation has referred to harvesting water from shallow subsurface soils, which are potential huge water reservoirs. Here, we introduce a method of solar-driven water harvesting from soils, which can provide cheap fresh water in impoverished, arid and decentralized areas. The concentrated solar energy is used to heat the soils to evaporate the soil moisture. Then vapors flow to the condenser through tubes and condense as freshwater. Sustainable water harvesting is realized by water migration due to capillary pumping effect within soils. In the laboratory condition, an experimental setup is designed and its water-harvesting ability from soils is investigated. The maximum water mass harvesting rate was 99.8 g h-1. In about 12 h, the total harvesting water could be as high as about 900 ml. The whole process is solar-driven and spontaneous without other mechanical or electrical ancillaries. The water harvesting rate under one sun energy flux (1 kW m-2) is estimated to be about 360 g h-1 with a 1 m2 solar concentrator. Our proposal provides a potential onsite and sustainable fresh water supply solution to deal with the water scarcity problem.

physics.app-ph↗

arXiv2016

Characterizations of the position value for hypergraph communication situations

The Mayser value (Myerson (1977)), the position value (Meessen (1988)) and the average tree solution (Herings et al.) are three most important allocation rules for (graph or hypergraph) communication situations. In 2005, an axiomatic characterization of the position value for arbitrary (graph) communication situations was given by Slikker (2005). However, an axiomatic characterization of the position value for arbitrary hypergraph communication situations has not yet been found and remains an open problem. In our manuscript, we first give two non-axiomatic characterizations of the position value for hypergraph communication situations by introducing the uniform hyperlink game and the $k$-augment uniform hyperlink game. Based on the non-axiomatic characterizations, we provide an axiomatic characterization of the position value for arbitrary hypergraph communication situations by employing component efficiency and partial balanced conference contributions.

math.OC↗