RiskLabs: Predicting Financial Risk Using Large Language Model Based on Multi-Sources Data

The integration of Artificial Intelligence (AI) techniques, particularly large language models (LLMs), in finance has garnered increasing academic attention. Despite progress, existing studies predominantly focus on tasks like financial text summarization, question-answering (Q$\&$A), and stock movement prediction (binary classification), with a notable gap in the application of LLMs for financial risk prediction. Addressing this gap, in this paper, we introduce \textbf{RiskLabs}, a novel framework that leverages LLMs to analyze and predict financial risks. RiskLabs uniquely combines different types of financial data, including textual and vocal information from Earnings Conference Calls (ECCs), market-related time series data, and contextual news data surrounding ECC release dates. Our approach involves a multi-stage process: initially extracting and analyzing ECC data using LLMs, followed by gathering and processing time-series data before the ECC dates to model and understand risk over different timeframes. Using multimodal fusion techniques, RiskLabs amalgamates these varied data features for comprehensive multi-task financial risk prediction. Empirical experiment results demonstrate RiskLab's effectiveness in forecasting both volatility and variance in financial markets. Through comparative experiments, we demonstrate how different data sources contribute to financial risk assessment and discuss the critical role of LLMs in this context. Our findings not only contribute to the AI in finance application but also open new avenues for applying LLMs in financial risk assessment.

Multilingual Large Language Model: A Survey of Resources, Taxonomy and Frontiers

Multilingual Large Language Models are capable of using powerful Large Language Models to handle and respond to queries in multiple languages, which achieves remarkable success in multilingual natural language processing tasks. Despite these breakthroughs, there still remains a lack of a comprehensive survey to summarize existing approaches and recent developments in this field. To this end, in this paper, we present a thorough review and provide a unified perspective to summarize the recent progress as well as emerging trends in multilingual large language models (MLLMs) literature. The contributions of this paper can be summarized: (1) First survey: to our knowledge, we take the first step and present a thorough review in MLLMs research field according to multi-lingual alignment; (2) New taxonomy: we offer a new and unified perspective to summarize the current progress of MLLMs; (3) New frontiers: we highlight several emerging frontiers and discuss the corresponding challenges; (4) Abundant resources: we collect abundant open-source resources, including relevant papers, data corpora, and leaderboards. We hope our work can provide the community with quick access and spur breakthrough research in MLLMs.

InternLM2 Technical Report

The evolution of Large Language Models (LLMs) like ChatGPT and GPT-4 has sparked discussions on the advent of Artificial General Intelligence (AGI). However, replicating such advancements in open-source models has been challenging. This paper introduces InternLM2, an open-source LLM that outperforms its predecessors in comprehensive evaluations across 6 dimensions and 30 benchmarks, long-context modeling, and open-ended subjective evaluations through innovative pre-training and optimization techniques. The pre-training process of InternLM2 is meticulously detailed, highlighting the preparation of diverse data types including text, code, and long-context data. InternLM2 efficiently captures long-term dependencies, initially trained on 4k tokens before advancing to 32k tokens in pre-training and fine-tuning stages, exhibiting remarkable performance on the 200k ``Needle-in-a-Haystack" test. InternLM2 is further aligned using Supervised Fine-Tuning (SFT) and a novel Conditional Online Reinforcement Learning from Human Feedback (COOL RLHF) strategy that addresses conflicting human preferences and reward hacking. By releasing InternLM2 models in different training stages and model sizes, we provide the community with insights into the model's evolution.

Movable-Antenna Position Optimization: A Graph-based Approach

Fluid antennas (FAs) and movable antennas (MAs) have emerged as promising technologies in wireless communications, which offer the flexibility to improve channel conditions by adjusting transmit/receive antenna positions within a spatial region. In this letter, we focus on an MA-enhanced multiple-input single-output (MISO) communication system, aiming to optimize the positions of multiple transmit MAs to maximize the received signal power. Unlike the prior works on continuously searching for the optimal MA positions, we propose to sample the transmit region into discrete points, such that the continuous antenna position optimization problem is transformed to a discrete sampling point selection problem based on the point-wise channel information. However, such a point selection problem is combinatory and challenging to be optimally solved. To tackle this challenge, we ingeniously recast it as an equivalent fixed-hop shortest path problem in graph theory and propose a customized algorithm to solve it optimally in polynomial time. To further reduce the complexity, a linear-time sequential update algorithm is also proposed to obtain a high-quality suboptimal solution. Numerical results demonstrate that the proposed algorithms can yield considerable performance gains over the conventional fixed-position antennas with/without antenna selection.

Sparse and Faithful Explanations Without Sparse Models

Even if a model is not globally sparse, it is possible for decisions made from that model to be accurately and faithfully described by a small number of features. For instance, an application for a large loan might be denied to someone because they have no credit history, which overwhelms any evidence towards their creditworthiness. In this work, we introduce the Sparse Explanation Value (SEV), a new way of measuring sparsity in machine learning models. In the loan denial example above, the SEV is 1 because only one factor is needed to explain why the loan was denied. SEV is a measure of decision sparsity rather than overall model sparsity, and we are able to show that many machine learning models -- even if they are not sparse -- actually have low decision sparsity, as measured by SEV. SEV is defined using movements over a hypercube, allowing SEV to be defined consistently over various model classes, with movement restrictions reflecting real-world constraints. We proposed the algorithms that reduce SEV without sacrificing accuracy, providing sparse and completely faithful explanations, even without globally sparse models.

Fine-Grained Zero-Shot Learning: Advances, Challenges, and Prospects

Recent zero-shot learning (ZSL) approaches have integrated fine-grained analysis, i.e., fine-grained ZSL, to mitigate the commonly known seen/unseen domain bias and misaligned visual-semantics mapping problems, and have made profound progress. Notably, this paradigm differs from existing close-set fine-grained methods and, therefore, can pose unique and nontrivial challenges. However, to the best of our knowledge, there remains a lack of systematic summaries of this topic. To enrich the literature of this domain and provide a sound basis for its future development, in this paper, we present a broad review of recent advances for fine-grained analysis in ZSL. Concretely, we first provide a taxonomy of existing methods and techniques with a thorough analysis of each category. Then, we summarize the benchmark, covering publicly available datasets, models, implementations, and some more details as a library. Last, we sketch out some related applications. In addition, we discuss vital challenges and suggest potential future directions.

Joint Transceiver Optimization for MmWave/THz MU-MIMO ISAC Systems

In this paper, we consider the problem of joint transceiver design for millimeter wave (mmWave)/Terahertz (THz) multi-user MIMO integrated sensing and communication (ISAC) systems. Such a problem is formulated into a nonconvex optimization problem, with the objective of maximizing a weighted sum of communication users' rates and the passive radar's signal-to-clutter-and-noise-ratio (SCNR). By exploring a low-dimensional subspace property of the optimal precoder, a low-complexity block-coordinate-descent (BCD)-based algorithm is proposed. Our analysis reveals that the hybrid analog/digital beamforming structure can attain the same performance as that of a fully digital precoder, provided that the number of radio frequency (RF) chains is no less than the number of resolvable signal paths. Also, through expressing the precoder as a sum of a communication-precoder and a sensing-precoder, we develop an analytical solution to the joint transceiver design problem by generalizing the idea of block-diagonalization (BD) to the ISAC system. Simulation results show that with a proper tradeoff parameter, the proposed methods can achieve a decent compromise between communication and sensing, where the performance of each communication/sensing task experiences only a mild performance loss as compared with the performance attained by optimizing exclusively for a single task.

Linear Alignment: A Closed-form Solution for Aligning Human Preferences without Tuning and Feedback

The success of AI assistants based on Language Models (LLMs) hinges on Reinforcement Learning from Human Feedback (RLHF) to comprehend and align with user intentions. However, traditional alignment algorithms, such as PPO, are hampered by complex annotation and training requirements. This reliance limits the applicability of RLHF and hinders the development of professional assistants tailored to diverse human preferences. In this work, we introduce \textit{Linear Alignment}, a novel algorithm that aligns language models with human preferences in one single inference step, eliminating the reliance on data annotation and model training. Linear alignment incorporates a new parameterization for policy optimization under divergence constraints, which enables the extraction of optimal policy in a closed-form manner and facilitates the direct estimation of the aligned response. Extensive experiments on both general and personalized preference datasets demonstrate that linear alignment significantly enhances the performance and efficiency of LLM alignment across diverse scenarios. Our code and dataset will be published on \url{https://github.com/Wizardcoast/Linear_Alignment.git}.

DiffusionPCR: Diffusion Models for Robust Multi-Step Point Cloud Registration

Point Cloud Registration (PCR) estimates the relative rigid transformation between two point clouds. We propose formulating PCR as a denoising diffusion probabilistic process, mapping noisy transformations to the ground truth. However, using diffusion models for PCR has nontrivial challenges, such as adapting a generative model to a discriminative task and leveraging the estimated nonlinear transformation from the previous step. Instead of training a diffusion model to directly map pure noise to ground truth, we map the predictions of an off-the-shelf PCR model to ground truth. The predictions of off-the-shelf models are often imperfect, especially in challenging cases where the two points clouds have low overlap, and thus could be seen as noisy versions of the real rigid transformation. In addition, we transform the rotation matrix into a spherical linear space for interpolation between samples in the forward process, and convert rigid transformations into auxiliary information to implicitly exploit last-step estimations in the reverse process. As a result, conditioned on time step, the denoising model adapts to the increasing accuracy across steps and refines registrations. Our extensive experiments showcase the effectiveness of our DiffusionPCR, yielding state-of-the-art registration recall rates (95.3%/81.6%) on 3DMatch and 3DLoMatch. The code will be made public upon publication.

FinMem: A Performance-Enhanced LLM Trading Agent with Layered Memory and Character Design

Recent advancements in Large Language Models (LLMs) have exhibited notable efficacy in question-answering (QA) tasks across diverse domains. Their prowess in integrating extensive web knowledge has fueled interest in developing LLM-based autonomous agents. While LLMs are efficient in decoding human instructions and deriving solutions by holistically processing historical inputs, transitioning to purpose-driven agents requires a supplementary rational architecture to process multi-source information, establish reasoning chains, and prioritize critical tasks. Addressing this, we introduce \textsc{FinMem}, a novel LLM-based agent framework devised for financial decision-making. It encompasses three core modules: Profiling, to customize the agent's characteristics; Memory, with layered message processing, to aid the agent in assimilating hierarchical financial data; and Decision-making, to convert insights gained from memories into investment decisions. Notably, \textsc{FinMem}'s memory module aligns closely with the cognitive structure of human traders, offering robust interpretability and real-time tuning. Its adjustable cognitive span allows for the retention of critical information beyond human perceptual limits, thereby enhancing trading outcomes. This framework enables the agent to self-evolve its professional knowledge, react agilely to new investment cues, and continuously refine trading decisions in the volatile financial environment. We first compare \textsc{FinMem} with various algorithmic agents on a scalable real-world financial dataset, underscoring its leading trading performance in stocks. We then fine-tuned the agent's perceptual span and character setting to achieve a significantly enhanced trading performance. Collectively, \textsc{FinMem} presents a cutting-edge LLM agent framework for automated trading, boosting cumulative investment returns.