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Kwong Yu Chong

Publications and source records attributed to Kwong Yu Chong.

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Semi-Supervised Generative Learning via Latent Space Distribution Matching

We introduce Latent Space Distribution Matching (LSDM), a novel framework for semi-supervised generative modeling of conditional distributions. LSDM operates in two stages: (i) learning a low-dimensional latent space from both paired and unpaired data, and (ii) performing joint distribution matching in this space via the 1-Wasserstein distance, using only paired data. This two-step approach minimizes an upper bound on the 1-Wasserstein distance between joint distributions, reducing reliance on scarce paired samples while enabling fast one-step generation. Theoretically, we establish non-asymptotic error bounds and demonstrate a key benefit of unpaired data: enhanced geometric fidelity in generated outputs. Furthermore, by extending the scope of its two core steps, LSDM provides a coherent statistical perspective that connects to a broad class of latent-space approaches. Notably, Latent Diffusion Models (LDMs) can be viewed as a variant of LSDM, in which joint distribution matching is achieved indirectly via score matching. Consequently, our results also provide theoretical insights into the consistency of LDMs. Empirical evaluations on real-world image tasks, including class-conditional generation and image super-resolution, demonstrate the effectiveness of LSDM in leveraging unpaired data to enhance generation quality.

stat.ML

Black-Litterman, Bayesian Shrinkage, and Factor Models in Portfolio Selection: You Can Have It All

Mean-variance analysis is widely used in portfolio management to identify the best portfolio that makes an optimal trade-off between expected return and volatility. Yet, this method has its limitations, notably its vulnerability to estimation errors and its reliance on historical data. While shrinkage estimators and factor models have been introduced to improve estimation accuracy through bias-variance trade-offs, and the Black-Litterman model has been developed to integrate investor opinions, a unified framework combining three approaches has been lacking. Our study debuts a Bayesian blueprint that fuses shrinkage estimation with view inclusion, conceptualizing both as Bayesian updates. This model is then applied within the context of the Fama-French approach factor models, thereby integrating the advantages of each methodology. Finally, through a comprehensive empirical study in the US equity market spanning a decade, we show that the model outperforms both the simple $1/N$ portfolio and the optimal portfolios based on sample estimators.

q-fin.PM