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01.
arXiv (CS.CV) 2026-06-12

Cascade Classification of Dermoscopic Images of Skin Neoplasms with Controllable Sensitivity and External Clinical Validation

Purpose. To compare deep learning architectures and classification schemes for dermoscopic images of skin neoplasms and assess their generalization on transfer from open international datasets to independent clinical datasets of Russian practice. Methods. Four architectures (ViT-B/16, Swin-S, ConvNeXt-S, EfficientNetV2-S) were compared in three schemes: binary (malignant/benign), single-stage four-class (benign, MEL, SCC, BCC), and a two-stage cascade (binary triage, then three-class differentiation MEL/SCC/BCC). All models used ImageNet-pretrained weights and a single augmentation protocol on aggregated open ISIC Archive data, and were evaluated on an internal held-out sample and two clinical datasets (Melanoscope AI mobile system; Sechenov University). Results. Internally the binary stage attains ROC-AUC 0.952-0.966; on Sechenov University it drops to 0.797-0.893, sensitivity to 0.53-0.67, and ECE rises from 0.02 to 0.27-0.39 with underestimation of malignancy, quantifying a generalization gap in ranking and calibration. Paired tests confirm one inter-architecture result on clinical data: the deficit of ViT-B/16 at the binary stage (p

02.
arXiv (CS.AI) 2026-06-17

A T-API-Compliant ReAct Agentic Loop for Optical Networks: Generic vs. Domain-Specific Tool Abstractions

arXiv:2606.18000v1 Announce Type: cross Abstract: Optical networks need intent-driven, closed-loop agentic management, a key enabler for higher autonomy levels. We present the first T-API-compliant reasoning and act (ReAct) loop. We show that domain-specific composite tools achieve 90% oracle-validated correctness with threefold token savings compared to generic tools.

03.
arXiv (CS.LG) 2026-06-12

ExPLAIND: Unifying Model, Data, and Training Attribution to Study Model Behavior

arXiv:2505.20076v4 Announce Type: replace Abstract: Post-hoc interpretability methods typically attribute a model's behavior to its components, data, or training trajectory in isolation, and are often tied to a particular level of granularity along the local-to-global spectrum. This leads to explanations that lack a unified view and may miss key interactions. We present ExPLAIND, a theoretically grounded, unified framework that integrates model components, data, and training trajectory while supporting explanations across granularities. We generalize recent work on gradient path kernels, reformulating models trained by AdamW as kernel machines. From the resulting kernel feature maps, we derive novel parameter-wise and step-wise influence scores. We empirically validate the resulting decomposition of model behavior in several settings and apply ExPLAIND to two case studies. Our findings on a Transformer exhibiting Grokking support previously proposed learning phases, while refining the final phase as one in which outer layers align around a representation pipeline learned after memorization. For EuroLLM pretraining, ExPLAIND reveals a two-phase dynamic, with the first characterized by outer-layer MLP learning and the second by increased relative influence of intermediate attention layers. These results establish ExPLAIND as a unified framework for interpreting model behavior and training dynamics.

04.
arXiv (quant-ph) 2026-06-16

Quantum Nonlocal Games on Graph Ensembles

arXiv:2606.16784v1 Announce Type: new Abstract: Quantum entanglement is one of the most striking discoveries in all of science. This effect allows, for instance, two spatially separated agents to coordinate their actions, without communication, to an extent that is both counter-intuitive, and provably impossible by any other physical means. A recently discovered example is that of mobile agents (players) performing spatial coordination tasks such as rendezvous, where the agents aim to meet on a network without communication. Until now, demonstrations of this advantage have relied on highly idealized conditions: agents are assumed to have complete knowledge of the topography, and experiments have been restricted to simulations using data generated by qubits within a single quantum processor. Here we address both limitations by developing a theory for graph ensembles that capture topographical uncertainty and by experimentally demonstrating the advantage in rendezvous scenarios between physically separated ion-trap systems with access to remote entanglement. Moreover, we simulate a broader set of problems on superconducting hardware. Surprisingly, when players are given the ability to gather more local information the quantum advantage increases – a feat impossible by classical means. Our findings establish a concrete route toward practical quantum advantages in motion coordination problems. More broadly, they point to a new way of using portable quantum devices to enhance collective decision-making in uncertain environments.

05.
arXiv (CS.LG) 2026-06-16

Probing Dec-POMDP Reasoning in Cooperative MARL

arXiv:2602.20804v2 Announce Type: replace Abstract: Cooperative multi-agent reinforcement learning (MARL) is typically framed as a decentralised partially observable Markov decision process (Dec-POMDP), a setting whose hardness stems from two key challenges: partial observability and decentralised coordination. Genuinely solving such tasks requires Dec-POMDP reasoning, where agents use history to infer hidden states and coordinate based on local information. Yet it remains unclear whether popular benchmarks actually demand this reasoning or permit success via simpler strategies. We introduce a diagnostic suite combining statistically grounded performance comparisons and information-theoretic probes to audit the behavioural complexity of baseline policies (IPPO and MAPPO) across 37 scenarios spanning MPE, SMAX, Overcooked, Hanabi, and MaBrax. Our diagnostics reveal that success on these benchmarks rarely requires genuine Dec-POMDP reasoning. Reactive policies match the performance of memory-based agents in over half the scenarios, and emergent coordination frequently relies on brittle, synchronous action coupling rather than robust temporal influence. These findings suggest that some widely used benchmarks may not adequately test core Dec-POMDP assumptions under current training paradigms, potentially leading to over-optimistic assessments of progress. We release our diagnostic tooling to support more rigorous environment design and evaluation in cooperative MARL.

06.
arXiv (CS.CL) 2026-06-19

Displacement Is Not Direction: Evaluating Fidelity Metrics for Quantized LLM Deployment

Fidelity metrics, such as per-token KL divergence (KLD) against a high-precision reference, are often used in practice as low-cost proxies for benchmark quality. We test this practice on a 28-quant cohort of Qwen3.6-35B-A3B and a 41-quant cohort of Devstral-Small-2-24B, evaluated across a suite of downstream benchmarks. We find that KLD is strongly correlated with benchmark score over the full cohort ($\rho=-0.72$ on Qwen and $\rho=-0.86$ on Devstral, both with $p

07.
arXiv (CS.CV) 2026-06-24

ABACUS: Adapting Unified Foundation Model for Bridging Image Count Understanding and Generation

ABACUS is a unified vision-language model that handles object counting, crowd counting, referring-expression counting, and count-faithful image generation without any benchmark-specific training required. Our model is built on existing 3B-parameter unified foundation model and is adapted for object localization tasks using three key innovations: density-aware adaptive zooming with objectness maps for spatial grounding; a boundary-aware count policy via GRPO to eliminate crop-boundary errors; and a cycle-consistent GRPO strategy where the understanding branch self-critiques generated outputs, closing the understanding-generation gap without any external annotations. ABACUS achieves state-of-the-art results across seven benchmarks, outperforming both task-specific specialists and larger generalist models.

08.
arXiv (CS.AI) 2026-06-24

Variational Model Merging for Pareto Front Estimation in Multitask Finetuning

arXiv:2412.08147v2 Announce Type: replace-cross Abstract: Pareto fronts are useful to find good task-mixing strategies for multitask finetuning, but they are also costly to compute. To reduce costs, recent works have used existing model merging methods to help train cheap surrogate models to estimate the Pareto fronts. However, no work has yet considered designing new model-merging methods to directly, and provably, improve the quality of Pareto fronts. Here, we fill this gap by proposing a new Bayesian approach called Variational Model Merging. In this approach, existing model-merging methods are obtained as special cases of "posterior-merging" when Gaussian posteriors are used and new model-merging strategies can be derived by using non-Gaussian posteriors. Our main theoretical result is to show that more flexible posteriors necessarily yield better estimates of Pareto fronts. For instance, a Pareto front estimate obtained by merging full-Gaussian posteriors is expected to be better than that obtained by using isotropic Gaussian posteriors. We validate the theory through extensive empirical results on vision and language transformers where better Gaussian families consistently yields better or comparable Pareto fronts. Our work is a rare instance where Bayesian ideas are used to improve Pareto analysis.

09.
arXiv (quant-ph) 2026-06-15

Tantalum as a base material for superconducting integrated circuits

arXiv:2606.13750v1 Announce Type: new Abstract: The performance of superconducting integrated circuits for quantum applications is fundamentally limited by material-related losses. Tantalum, as an emerging material for next-generation quantum circuits, has attracted considerable attention in recent years after demonstrating breakthrough performance in both superconducting microwave resonators and qubits. Concurrently, a growing body of work is devoted to the operation of tantalum-based circuits and related fabrication techniques. This interest is further stimulated by tantalum thin films polymorphism resulting in a variety of its crystalline structure, superconducting properties, coherence, etc. Furthermore, tantalum circuits exhibit distinctive features in cryogenic experiments, which have not been observed in aluminum- or niobium-based ones. In this review, we summarize the recent research of tantalum thin films growth and phase selection mechanisms on various substrates, key aspects of fabrication and performance of superconducting circuit, including a material first-principles theoretical study. In conclusion, we address a number of open issues, including the role of \b{eta}-phase impurities, the effect of hydrofluoric acid solutions on chain characteristics, and the anomalous behavior of {\alpha}-tantalum chains at cryogenic temperatures.

10.
arXiv (CS.AI) 2026-06-16

Discovering Lattice Reduction Strategies via Self-Play

arXiv:2606.15301v1 Announce Type: cross Abstract: The Lenstra-Lenstra-Lovász (LLL) algorithm is a seminal contribution to computer science used for lattice basis reduction, yet its polynomial-time outputs produce bases that are far from optimal as the dimension grows. We show that deep reinforcement learning can discover strictly superior, generalizable reduction strategies by interacting with the primitive action space of LLL. We formulate lattice reduction as a single-player Markov Decision Process (MDP) and train a deep residual network using an AlphaZero-style self-play pipeline augmented with adaptive-horizon MCTS (Monte Carlo Tree Search), which couples multi-step network predictions with an entropy-gated expansion mechanism. The resulting policy, DeltaStar, is trained exclusively on small $8$-dimensional $q$-ary lattices and requires fewer primitive row operations than LLL. Crucially, it generalizes zero-shot to unseen moduli and higher dimensions up to $n=32$ without retraining.

11.
medRxiv (Medicine) 2026-06-10

Developing a Unified Criminal Justice Pathway into Drug and Alcohol Treatment from Police Custody: A Public Health Service Evaluation and Pathway-Design Project in Blackpool, United Kingdom

Introduction: Blackpool, England's most deprived local authority, has the highest drug-related death rate in the country. People in police custody with problem substance use are a key Core20PLUS5 inclusion-health group, yet referral from the police into structured drug and alcohol treatment is fragmented and relies heavily on self-report. We evaluated the current police-to-treatment route in Blackpool and designed an evidence-informed unified pathway. Materials and Methods: A mixed-methods service evaluation and pathway-design project was conducted during a six-month General Practice / Public Health rotation. Routinely collected referral data from Horizon (the local specialist drug and alcohol service) covering the 47-month period from December 2019 to October 2023 were analysed. Findings were triangulated with national policy, the Project ADDER and Liaison and Diversion evaluations, and the international evidence on police-led pre-arrest diversion. Results: Of 5,900 total referrals into Horizon over 47 months, only 269 (4.56%) originated from the police. Police referrals accounted for fewer than 5% of monthly referrals in 30 of 47 months, for 5 to 9.9% in 16 months, and for >/= 10% in only one month (10.8%, December 2022). Blackpool recorded 76 drug-misuse deaths in 2019-21 (19.4 per 100,000, approximately four times the England rate). A six-step unified pathway is proposed: Initiate Referral (opt-out, from ADDER Police and Liaison and Diversion); Initial Assessment; Tailored Treatment Plan; Continuous Support; Collaboration and Monitoring; and Evaluation and Adjustment. Conclusions: Police contact is markedly under-used as a gateway to treatment despite Blackpool having the highest drug-related mortality in England. An opt-out, multi-agency pathway anchored in Core20PLUS5 has the potential to narrow the treatment gap, reduce re-offending, and address the structural health inequalities that drive premature mortality.

12.
arXiv (CS.LG) 2026-06-12

Exposure Bias as Epistemic Underidentification in Recursive Forecasting

arXiv:2606.12990v1 Announce Type: new Abstract: Recursive multi-step forecasting is usually framed as distribution shift: models are trained on observed histories but deployed on their own predictions. We show this framing is incomplete by proving that, under partial observability or state truncation, recursive rollout is also an epistemic underidentification problem. Even with deterministic latent dynamics, one-step Bayes supervision identifies behavior only on observed contexts and need not identify the deployed recursive predictor once rollout queries self-generated induced states whose correct local targets are not determined by numeric state alone. We formalize this with induced states $Z$ and provenance variables $P$, and derive a decomposition of induced-state error into teacher-forcing/rollout mismatch, representation–class approximation, and provenance information gaps. Empirically, we show that rollout enters a distinct induced-state regime, that fixed induced states define a distinct local corrective task, and that closed-loop gains arise not only from local adaptation but also from changing the induced states visited during rollout. Using a simple binary provenance encoding, provenance-aware correction can further improve performance, though gains are conditional rather than uniform. These results recast exposure bias as reasoning under self-induced epistemic uncertainty.

13.
arXiv (CS.AI) 2026-06-17

Visored: A Controlled-Natural-Language Prover for LLM-Generated Mathematics

arXiv:2606.17581v1 Announce Type: cross Abstract: We present a dependent-type-based prover designed around the way LLMs (and humans) tend to write mathematics, complementing existing systems such as Lean and Rocq. Its core design choices are a surface that imitates mathematical natural language and a rule-driven automation layer that closes the routine steps a textbook would omit, so that an accepted proof can be re-emitted as a checked Lean file. Early experiments suggest that, even without any prover-specific training data, LLMs can learn to use it effectively on the miniF2F benchmark. Lean output excerpts: https://github.com/xiyuzhai-husky-lang/visored/

14.
arXiv (CS.CL) 2026-06-12

ArogyaSutra: A Multi-Agent Framework for Multimodal Medical Reasoning in Indic Languages

Multimodal Large Language Models (MLLMs) have shown promising reasoning capabilities in general domains, yet their performance remains limited in specialized settings such as healthcare, especially in multilingual and low-resource scenarios. This gap is critical in regions like rural India, where patients often express complex medical queries in native Indic languages and rely on multimodal inputs such as medical images. Existing English-centric MLLMs struggle to support such use cases, limiting equitable access to AI-driven healthcare assistance. To address this challenge, we introduce ArogyaBodha, a large-scale multilingual multimodal medical question-answer dataset constructed from eight heterogeneous sources, covering 31 body systems, six imaging modalities, and 21 clinical domains across English and seven major Indian languages. We further propose ArogyaSutra, an actor-critic-based multi-agent framework that integrates tool grounding with dual-memory mechanisms for step-wise, reasoning-aware decision making, and uses stored actor-critic simulation trajectories for distillation. Experiments show that our dataset and framework improve multilingual medical reasoning accuracy across all Indic languages, with ablations validating the contribution of each component. The source code and dataset are available at: https://iitp-cse.github.io/ ArogyaSutra/

15.
Nature (Science) 2026-06-10

Mitochondria directly interact with the nuclear pore complex

Mitochondria regulate cellular processes through direct and indirect interactions with other organelles. A well-studied example has been contact with the endoplasmic reticulum at mitochondrial-associated endoplasmic reticulum membranes1, which control pathways including redox and calcium homeostasis2,3. Recent studies have also reported direct mitochondria–nuclear membrane contacts in cancer cells and yeast that promote pro-survival signalling4,5. Here we identify direct interactions between mitochondria and nuclear pores. Using two unbiased proteomic screens, GST pulldown and BioID, we found that VDAC1 was the top mitochondrial candidate that interacts with the filamentous nuclear pore protein RANBP2. In vitro RANBP2 CRISPR knockout, RANBP2 truncation or site-directed mutagenesis of RANBP2–VDAC1 interacting amino acids resulted in reduced mitochondria–nucleus proximity and decreased nuclear ATP and phosphocreatine levels. This was accompanied by a decline in the levels of the nuclear phosphoproteome and downregulation of pathways involved in histone modification, cellular differentiation and transcriptional regulation in vitro. Moreover, deletion of the RANBP2 C-terminal domain in vivo in mice resulted in embryonic lethality due to cardiac and neural crest differentiation defects. Collectively, these results describe a mechanism by which mitochondria directly interact with the nuclear pore complex, a phenomenon critical for regulation of nuclear energetics and cellular differentiation. Undoubtedly, additional roles of this interaction remain to be revealed. Mitochondria interact directly with the nuclear pore complex via VDAC1–RANBP2 binding to sustain nuclear ATP levels.

16.
arXiv (quant-ph) 2026-06-19

Application and quantum properties of superpositions of oppositely squeezed states

arXiv:2511.03204v2 Announce Type: replace Abstract: We show that superpositions of oppositely squeezed states – non-Gaussian Schr{\"{o}}dinger-cat-like states – exhibit enhanced nonclassical features and provide an entanglement advantage in the small-squeezing regime. These states possess photon-number structures distinct from conventional coherent-state cat states, and we analyze their Wigner functions and the entanglement generated when they are injected into a 50-50 beam splitter. As a practical application, we demonstrate that they enable a high-quality heralded single-photon source whose second-order intensity correlation function is smaller than that obtained from a pure two-mode squeezed vacuum state. We further propose a linear-optical heralding scheme that approximates these superpositions without requiring strong Kerr nonlinearities. Our results indicate that the superposition of oppositely squeezed states is a promising non-Gaussian resource for quantum information processing, particularly for single-photon generation.

17.
arXiv (CS.CV) 2026-06-15

Rethinking One-Step Image Editing through ChordEdit: Reproduction, Simplification, and New Insights

One-step image editing is important for making text-guided editing fast, practical, and easy to deploy, but its underlying mechanism is still not fully understood. We revisit ChordEdit through reproduction, ablation, and simplification. Our analysis shows that a) the chord window $\delta$ largely acts as an effective timestep shift from $t$ to $t - \delta$; b) chord transport acts on high-noise images and mainly performs low-frequency semantic editing; and c) proximal alignment acts on low-noise images and complements it by adding high-frequency target details. In this view, ChordEdit naturally decomposes editing into a coarse low-frequency transport stage and a fine high-frequency alignment stage. These findings suggest a path toward prompt-conditioned dynamic timestep selection for adaptive image editing. All code and results can be found at \href{https://github.com/Harvard-AI-and-Robotics-Lab/ChordEdit-Reproduction}{link}.

18.
arXiv (CS.LG) 2026-06-18

Robust and Interpretable Adaptation of Equivariant Materials Foundation Models via Sparsity-promoting Fine-tuning

arXiv:2606.18691v1 Announce Type: new Abstract: Pre-trained materials foundation models, or machine learning interatomic potentials, leverage general physicochemical knowledge to effectively approximate potential energy surfaces. However, they often require domain-specific calibration due to physicochemical diversity as well as mismatches between practical computational settings and those used in constructing the pre-training data. To address this, we propose a sparsity-promoting fine-tuning method that selectively updates model parameters by exploiting the structural properties of E(3)-equivariant materials foundation models. On energy and force prediction tasks across molecular and crystalline benchmarks, our method matches or surpasses full fine-tuning and equivariant low-rank adaptation while updating only $\sim$3~\% of parameters, and in some cases as little as $\sim$0.5~\%. Beyond energy and force calibration, we further demonstrate task generalizability by applying our method to magnetic moment prediction and magnetism-aware total energy modeling. Finally, analysis of sparsity patterns reveals physically interpretable signatures, such as enhanced $d$-orbital contributions in transition metal systems. Overall, our results establish sparsity-promoting fine-tuning as a flexible and interpretable method for domain specialization of equivariant materials foundation models.

19.
arXiv (CS.CL) 2026-06-17

Beyond Domains: Reusing Web Skills via Transferable Interaction Patterns

Large language model (LLM) web agents are usually deployed as tool callers: each turn, the model reads a fresh page observation and emits one structured tool action. When every action is a low-level primitive, horizons grow quickly and so do policy-facing LLM completions, dominating latency and cost on benchmarks such as Mind2Web and WebArena. Recent systems therefore wrap repeated interaction fragments as web skills: callable tools built from successful trajectories or induced programs, so one call can replace several primitives. However, prior skill libraries are still triggered mainly by instruction similarity or coarse site metadata, which yields low skill reuse on held-out sites and leaves much of the potential step and token reduction on the table. We present SkillMigrator, an agent that learns reusable web skills and transfers them across sites by matching layout structure rather than specific element references. Each induced skill is stored as a transferable interaction pattern (TIP): the skill paired with a structural sketch of the snapshot at induction time. At test time, SkillMigrator retrieves TIPs by layout similarity and grounds their references on the live page. The rest of the stack is standard: accessibility-snapshot observations with stable references, and fixed tool calling over primitives plus skill invocations. Compared with the state-of-the-art approaches, SkillMigrator reduces the average LLM-action count on successful trajectories by 8-10% across both WebArena and Mind2Web at matched success rate.

20.
arXiv (CS.CV) 2026-06-17

Looped World Models

Current world models face a fundamental tension: faithful long-horizon simulation demands deep computation, but deeper models are expensive to deploy and prone to compounding errors. We resolve this by introducing Looped World Models (LoopWM), which are the first looped architectures for world modelling. Our method iteratively refines latent environment states through a parameter-shared transformer block. This yield up to 100x parameter efficiency over conventional approaches with adaptive computation that automatically scales depth to match the complexity of each prediction step. Orthogonal to scaling model size and training data, LoopWM establishes iterative latent depth as a new scaling axis for world simulation, which might significantly push the community forward.

21.
arXiv (CS.AI) 2026-06-16

Sample from What You See: Visuomotor Policy Learning via Diffusion Bridge with Observation-Embedded Stochastic Differential Equation

arXiv:2512.07212v3 Announce Type: replace Abstract: Imitation learning with diffusion models has advanced robotic control by capturing the multi-modal action distributions. However, existing methods typically treat observations only as high-level conditions to the denoising network, rather than integrating them into the stochastic dynamics of the diffusion process itself. As a result, the sampling is forced to begin from random noise, weakening the coupling between perception and control and often yielding suboptimal performance. We propose BridgePolicy, a generative visuomotor policy that directly integrates observations into the stochastic dynamics via a diffusion-bridge formulation. By constructing an observation-informed trajectory, BridgePolicy enables sampling to start from a rich and informative prior rather than random noise, substantially improving precision and reliability in control. A key difficulty is that diffusion bridge normally connects distributions of matched dimensionality, while robotic observations are heterogeneous and not naturally aligned with actions. To overcome this, we introduce a semantic aligner to unify the visual and state inputs and align the observations with action representations, making diffusion bridge applicable to heterogeneous robot data. Extensive experiments across 52 simulation tasks on three benchmarks and 5 real-world tasks demonstrate that BridgePolicy consistently outperforms state-of-the-art generative policies. Our code is available at https://jianghcsr.github.io/BridgePolicy_page/.

22.
arXiv (CS.AI) 2026-06-15

Crypto x AI, AI x Crypto: A Survey

arXiv:2606.13892v1 Announce Type: cross Abstract: The intersection of crypto x AI is spawning papers, products, online posts, and companies. All the surrounding buzz, though, obscures what exactly has been done, what the opportunities and challenges are, and what open questions deserve attention. This survey paper asks what AI can do for blockchain-based technologies (broadly construed as "crypto") (crypto x AI), and vice versa (AI x crypto). We systematize existing work, summarize key takeaways, highlight open research questions, and offer a perspective on pervasive industry misconceptions, concluding that AI and crypto are still in the very early stages of meaningful integration.

23.
arXiv (CS.LG) 2026-06-15

Beyond a Single Explanation of the Adam–SGD Gap

arXiv:2606.14259v1 Announce Type: new Abstract: Prior work has identified several factors that can contribute to the performance gap between Adam and SGD, spanning data aspects, architecture design, and optimization properties. Yet these explanations are often studied in isolation, leaving their relative importance unclear. In this work, we revisit these hypotheses through a controlled empirical study across vision, language, genomics, and graph tasks, spanning modern and classical architectures, and carefully designed training setups. Our results suggest that no single factor consistently explains the Adam–SGD gap. For instance, the Adam advantage can (1) persist under a uniform vocabulary distribution yet nearly disappear under a heavy-tailed one; (2) reverse in favor of SGD in softmax-attention models; and (3) become larger under soft architectural modifications, e.g., when ReLU is replaced by a GeLU nonlinearity. This suggests that the gap arises from nontrivial data and architecture interactions, rather than from a single common factor. Yet, we observe a pattern across our settings: a crossover batch size at which the relative advantage shifts from SGD to Adam as the batch size scales. These empirical results are captured by our theoretical gap model, which predicts this batch-size-dependent crossover. Our perspective helps reconcile several existing hypotheses while offering practical insights across domains.

24.
arXiv (CS.LG) 2026-06-12

Interpretable Factor Decomposition for Decision Intelligence in Large-Scale Financial Markets: Evidence from China's A-Share Market

arXiv:2606.12843v1 Announce Type: new Abstract: We present an interpretable machine learning pipeline to decompose Cross-Sectional Equity Return Predictability into auditable factor contribution. We apply an XGBoost model with TreeSHAP attribution and conduct stress testing on 3632 Chinese A-share stocks from 2009 until 2019. Using 60-month, rolling windows over 55 months of out-of-sample data, XGBoost obtains a mean AUC of 0.547 and +2.38%/month (Newey-West t = 5.94; Annualized Sharpe 2.23) long-short spread for the top vs bottom quintiles. This alpha is persistent after adjusting for the Carhart four-factor model (+2.31%/month; t = 7.48). SHAP Decomposition indicates that behavioral signals (turnover and momentum) account for 58.2% of predictive attribution compared to 10.7% for valuation ratios, on average, across 55 industry groups. Ablation analysis serves to cross-validate this ranking and provides evidence that SHAP and ablation diverge in a manner that highlights feature substitutability structure that is largely invisible to either method used in isolation.

25.
arXiv (CS.CL) 2026-06-15

Beyond Perplexity: UTF-8 Validity in Byte-aware Language Models

Byte-level tokenization enables language models to handle any Unicode input, but models can generate invalid UTF-8 sequences when encountering rare or unseen characters. We investigate the relationship between training scale and UTF-8 generation reliability with a 355M parameter model trained on 80B tokens from a balanced multilingual corpus of English, Japanese, Korean, and Chinese. We introduce multiple evaluation protocols that isolate UTF-8 structural validity from language modeling. UTF-8 validity convergence lags perplexity by a roughly a factor of two: perplexity stabilizes after 2.1B tokens, but UTF-8 validity requires 4.2B tokens. In context-free generation, rare characters achieve higher structural validity than common characters, suggesting over-specialization of frequent character representations. Through experiments, we observed that reliable UTF-8 generation is a distinct capability requiring evaluation beyond perplexity.