Searcharxiv⌕ Search

arXiv subjects

Yi-Cheng Zhang

Publications and source records attributed to Yi-Cheng Zhang.

At least 91 records · Page 5Linked to original sources

The role of a matchmaker in buyer-vendor interactions

We consider a simple market where a vendor offers multiple variants of a certain product and preferences of both the vendor and potential buyers are heterogeneous and possibly even antagonistic. Optimization of the joint benefit of the vendor and the buyers turns the toy market into a combinatorial matching problem. We compare the optimal solutions found with and without a matchmaker, examine the resulting inequality between the market participants, and study the impact of correlations on the system.

q-fin.GN↗

Ultra accurate personalized recommendation via eliminating redundant correlations

In this paper, based on a weighted projection of bipartite user-object network, we introduce a personalized recommendation algorithm, called the \emph{network-based inference} (NBI), which has higher accuracy than the classical algorithm, namely \emph{collaborative filtering}. In the NBI, the correlation resulting from a specific attribute may be repeatedly counted in the cumulative recommendations from different objects. By considering the higher order correlations, we design an improved algorithm that can, to some extent, eliminate the redundant correlations. We test our algorithm on two benchmark data sets, \emph{MovieLens} and \emph{Netflix}. Compared with the NBI, the algorithmic accuracy, measured by the ranking score, can be further improved by 23% for \emph{MovieLens} and 22% for \emph{Netflix}, respectively. The present algorithm can even outperform the \emph{Latent Dirichlet Allocation} algorithm, which requires much longer computational time. Furthermore, most of the previous studies considered the algorithmic accuracy only, in this paper, we argue that the diversity and popularity, as two significant criteria of algorithmic performance, should also be taken into account. With more or less the same accuracy, an algorithm giving higher diversity and lower popularity is more favorable. Numerical results show that the present algorithm can outperform the standard one simultaneously in all five adopted metrics: lower ranking score and higher precision for accuracy, larger Hamming distance and lower intra-similarity for diversity, as well as smaller average degree for popularity.

physics.soc-ph↗

Collaborative filtering based on multi-channel diffusion

In this paper, by applying a diffusion process, we propose a new index to quantify the similarity between two users in a user-object bipartite graph. To deal with the discrete ratings on objects, we use a multi-channel representation where each object is mapped to several channels with the number of channels being equal to the number of different ratings. Each channel represents a certain rating and a user having voted an object will be connected to the channel corresponding to the rating. Diffusion process taking place on such a user-channel bipartite graph gives a new similarity measure of user pairs, which is further demonstrated to be more accurate than the classical Pearson correlation coefficient under the standard collaborative filtering framework.

cs.IR↗

Predicting Missing Links via Local Information

Missing link prediction of networks is of both theoretical interest and practical significance in modern science. In this paper, we empirically investigate a simple framework of link prediction on the basis of node similarity. We compare nine well-known local similarity measures on six real networks. The results indicate that the simplest measure, namely common neighbors, has the best overall performance, and the Adamic-Adar index performs the second best. A new similarity measure, motivated by the resource allocation process taking place on networks, is proposed and shown to have higher prediction accuracy than common neighbors. It is found that many links are assigned same scores if only the information of the nearest neighbors is used. We therefore design another new measure exploited information of the next nearest neighbors, which can remarkably enhance the prediction accuracy.

physics.data-an↗

Analysis of Kelly-optimal portfolios

We investigate the use of Kelly's strategy in the construction of an optimal portfolio of assets. For lognormally distributed asset returns, we derive approximate analytical results for the optimal investment fractions in various settings. We show that when mean returns and volatilities of the assets are small and there is no risk-free asset, the Kelly-optimal portfolio lies on Markowitz Efficient Frontier. Since in the investigated case the Kelly approach forbids short positions and borrowing, often only a small fraction of the available assets is included in the Kelly-optimal portfolio. This phenomenon, that we call condensation, is studied analytically in various model scenarios.

q-fin.PM↗

Personalized Recommendation via Integrated Diffusion on User-Item-Tag Tripartite Graphs

Personalized recommender systems are confronting great challenges of accuracy, diversification and novelty, especially when the data set is sparse and lacks accessorial information, such as user profiles, item attributes and explicit ratings. Collaborative tags contain rich information about personalized preferences and item contents, and are therefore potential to help in providing better recommendations. In this paper, we propose a recommendation algorithm based on an integrated diffusion on user-item-tag tripartite graphs. We use three benchmark data sets, Del.icio.us, MovieLens and BibSonomy, to evaluate our algorithm. Experimental results demonstrate that the usage of tag information can significantly improve accuracy, diversification and novelty of recommendations.

cs.IR↗

How to quantify the influence of correlations on investment diversification

When assets are correlated, benefits of investment diversification are reduced. To measure the influence of correlations on investment performance, a new quantity - the effective portfolio size - is proposed and investigated in both artificial and real situations. We show that in most cases, the effective portfolio size is much smaller than the actual number of assets in the portfolio and that it lowers even further during financial crises.

q-fin.PM↗

Diversification and limited information in the Kelly game

Financial markets, with their vast range of different investment opportunities, can be seen as a system of many different simultaneous games with diverse and often unknown levels of risk and reward. We introduce generalizations to the classic Kelly investment game [Kelly (1956)] that incorporates these features, and use them to investigate the influence of diversification and limited information on Kelly-optimal portfolios. In particular we present approximate formulas for optimizing diversified portfolios and exact results for optimal investment in unknown games where the only available information is past outcomes.

q-fin.PM↗

Heat Conduction Process on Community Networks as a Recommendation Model

Using heat conduction mechanism on a social network we develop a systematic method to predict missing values as recommendations. This method can treat very large matrices that are typical of internet communities. In particular, with an innovative, exact formulation that accommodates arbitrary boundary condition, our method is easy to use in real applications. The performance is assessed by comparing with traditional recommendation methods using real data.

physics.soc-ph↗

Information Filtering via Self-Consistent Refinement

Recommender systems are significant to help people deal with the world of information explosion and overload. In this Letter, we develop a general framework named self-consistent refinement and implement it be embedding two representative recommendation algorithms: similarity-based and spectrum-based methods. Numerical simulations on a benchmark data set demonstrate that the present method converges fast and can provide quite better performance than the standard methods.

physics.data-an↗

Market Model with Heterogeneous Buyers

In market modeling, one often treats buyers as a homogeneous group. In this paper we consider buyers with heterogeneous preferences and products available in many variants. Such a framework allows us to successfully model various market phenomena. In particular, we investigate how is the vendor's behavior influenced by the amount of available information and by the presence of correlations in the system.

q-fin.TR↗

Recommendation model based on opinion diffusion

Information overload in the modern society calls for highly efficient recommendation algorithms. In this letter we present a novel diffusion based recommendation model, with users' ratings built into a transition matrix. To speed up computation we introduce a Green function method. The numerical tests on a benchmark database show that our prediction is superior to the standard recommendation methods.

physics.soc-ph↗

Effect of initial configuration on network-based recommendation

In this paper, based on a weighted object network, we propose a recommendation algorithm, which is sensitive to the configuration of initial resource distribution. Even under the simplest case with binary resource, the current algorithm has remarkably higher accuracy than the widely applied global ranking method and collaborative filtering. Furthermore, we introduce a free parameter $β$ to regulate the initial configuration of resource. The numerical results indicate that decreasing the initial resource located on popular objects can further improve the algorithmic accuracy. More significantly, we argue that a better algorithm should simultaneously have higher accuracy and be more personal. According to a newly proposed measure about the degree of personalization, we demonstrate that a degree-dependent initial configuration can outperform the uniform case for both accuracy and personalization strength.

physics.soc-ph↗

How to project a bipartite network?

The one-mode projecting is extensively used to compress the bipartite networks. Since the one-mode projection is always less informative than the bipartite representation, a proper weighting method is required to better retain the original information. In this article, inspired by the network-based resource-allocation dynamics, we raise a weighting method, which can be directly applied in extracting the hidden information of networks, with remarkably better performance than the widely used global ranking method as well as collaborative filtering. This work not only provides a creditable method in compressing bipartite networks, but also highlights a possible way for the better solution of a long-standing challenge in modern information science: How to do personal recommendation?

physics.soc-ph↗

Exploring an opinion network for taste prediction: an empirical study

We develop a simple statistical method to find affinity relations in a large opinion network which is represented by a very sparse matrix. These relations allow us to predict missing matrix elements. We test our method on the Eachmovie data of thousands of movies and viewers. We found that significant prediction precision can be achieved and it is rather stable. There is an intrinsic limit to further improve the prediction precision by collecting more data, implying perfect prediction can never obtain via statistical means.

physics.soc-ph↗

Anomalous fluctuations in Minority Games and related multi-agent models of financial markets

We review the recent approaches to modelling financial markets based on multi-agent systems. After a brief summary of the basic stylised facts observed in real-market time-series we discuss some simple agent-based systems which are currently used to model financial markets. One of the most prominent examples is here the Minority Game (MG), which we address in some more detail. After a brief discussion of its basic setup and general phenomenology we summarise the main findings of the statistical mechanics analysis and discuss the emergence of stylised facts in extensions of the MG near their phase transitions between efficient and predictable regimes. We then turn towards more realistic variants which comprise heterogeneous populations of agents, with different memory capabilities, different inclinations to trade and varying expectations on the future evolution of the market. Finally we give a short outlook on potential future work in this area.

physics.soc-ph↗

Decoding Information from noisy, redundant, and intentionally-distorted sources

Advances in information technology reduce barriers to information propagation, but at the same time they also induce the information overload problem. For the making of various decisions, mere digestion of the relevant information has become a daunting task due to the massive amount of information available. This information, such as that generated by evaluation systems developed by various web sites, is in general useful but may be noisy and may also contain biased entries. In this study, we establish a framework to systematically tackle the challenging problem of information decoding in the presence of massive and redundant data. When applied to a voting system, our method simultaneously ranks the raters and the ratees using only the evaluation data, consisting of an array of scores each of which represents the rating of a ratee by a rater. Not only is our appraoch effective in decoding information, it is also shown to be robust against various hypothetical types of noise as well as intentional abuses.

cond-mat.dis-nn↗