arXiv subjects

Yuheng Zheng

Publications and source records attributed to Yuheng Zheng.

4 recordsLinked to original sources

arXiv2026

IMFuse: Instance-Aware Multi-Layer Fusion for LLM-Enhanced Sequential Recommendation

Recent advancements in Large Language Models (LLMs) have significantly enhanced sequential recommendation by encoding rich item textual information into semantic representations. However, existing methods typically rely on the final-layer hidden states of LLMs, overlooking potentially useful semantic signals encoded in other layers. Through empirical analysis, we reveal the limitations of this practice: final-layer representations often suffer from dimensional collapse, whereas intermediate layers preserve complementary, coarse-to-fine semantic knowledge. Furthermore, we observe that different items exhibit heterogeneous layer-wise representation evolution, making a uniform layer selection sub-optimal. To bridge this gap, we propose IMFuse, an instance-aware multi-layer fusion strategy designed for LLM-enhanced recommendation. Instead of relying on a single layer, IMFuse adaptively aggregates multi-layer semantic information by learning global dimension-wise layer preferences to capture general semantic contributions. To address item-level heterogeneity, IMFuse introduces an instance-aware expert modulation mechanism that dynamically adjusts these global preferences, generating personalized, item-specific semantic representations. Extensive experiments across four real-world datasets demonstrate the effectiveness of IMFuse. It consistently outperforms state-of-the-art baselines with an average relative improvement of 6.72%, while introducing limited parameter and computational overhead.

cs.IR↗

arXiv2026

TNStream: Applying Tightest Neighbors to Micro-Clusters to Define Multi-Density Clusters in Streaming Data

In data stream clustering, systematic theory of stream clustering algorithms remains relatively scarce. Recently, density-based methods have gained attention. However, existing algorithms struggle to simultaneously handle arbitrarily shaped, multi-density, high-dimensional data while maintaining strong outlier resistance. Clustering quality significantly deteriorates when data density varies complexly. This paper proposes a clustering algorithm based on the novel concept of Tightest Neighbors and introduces a data stream clustering theory based on the Skeleton Set. Based on these theories, this paper develops a new method, TNStream, a fully online algorithm. The algorithm adaptively determines the clustering radius based on local similarity, summarizing the evolution of multi-density data streams in micro-clusters. It then applies a Tightest Neighbors-based clustering algorithm to form final clusters. To improve efficiency in high-dimensional cases, Locality-Sensitive Hashing (LSH) is employed to structure micro-clusters, addressing the challenge of storing k-nearest neighbors. TNStream is evaluated on various synthetic and real-world datasets using different clustering metrics. Experimental results demonstrate its effectiveness in improving clustering quality for multi-density data and validate the proposed data stream clustering theory.

cs.LG↗

arXiv2024

When can weak latent factors be statistically inferred?

This article establishes a new and comprehensive estimation and inference theory for principal component analysis (PCA) under the weak factor model that allow for cross-sectional dependent idiosyncratic components under the nearly minimal factor strength relative to the noise level or signal-to-noise ratio. Our theory is applicable regardless of the relative growth rate between the cross-sectional dimension $N$ and temporal dimension $T$. This more realistic assumption and noticeable result require completely new technical device, as the commonly-used leave-one-out trick is no longer applicable to the case with cross-sectional dependence. Another notable advancement of our theory is on PCA inference $ - $ for example, under the regime where $N\asymp T$, we show that the asymptotic normality for the PCA-based estimator holds as long as the signal-to-noise ratio (SNR) grows faster than a polynomial rate of $\log N$. This finding significantly surpasses prior work that required a polynomial rate of $N$. Our theory is entirely non-asymptotic, offering finite-sample characterizations for both the estimation error and the uncertainty level of statistical inference. A notable technical innovation is our closed-form first-order approximation of PCA-based estimator, which paves the way for various statistical tests. Furthermore, we apply our theories to design easy-to-implement statistics for validating whether given factors fall in the linear spans of unknown latent factors, testing structural breaks in the factor loadings for an individual unit, checking whether two units have the same risk exposures, and constructing confidence intervals for systematic risks. Our empirical studies uncover insightful correlations between our test results and economic cycles.

stat.ME↗

arXiv2024

Reinforcement Learning in High-frequency Market Making

This paper establishes a new and comprehensive theoretical analysis for the application of reinforcement learning (RL) in high-frequency market making. We bridge the modern RL theory and the continuous-time statistical models in high-frequency financial economics. Different with most existing literature on methodological research about developing various RL methods for market making problem, our work is a pilot to provide the theoretical analysis. We target the effects of sampling frequency, and find an interesting tradeoff between error and complexity of RL algorithm when tweaking the values of the time increment $Δ$ $-$ as $Δ$ becomes smaller, the error will be smaller but the complexity will be larger. We also study the two-player case under the general-sum game framework and establish the convergence of Nash equilibrium to the continuous-time game equilibrium as $Δ\rightarrow0$. The Nash Q-learning algorithm, which is an online multi-agent RL method, is applied to solve the equilibrium. Our theories are not only useful for practitioners to choose the sampling frequency, but also very general and applicable to other high-frequency financial decision making problems, e.g., optimal executions, as long as the time-discretization of a continuous-time markov decision process is adopted. Monte Carlo simulation evidence support all of our theories.

q-fin.TR↗