Machine learning (ML) methods have been successfully employed in identifying variables that can predict the equity premium of individual stocks. In this paper, we investigate if ML can also be helpful in selecting variables relevant for optimal portfolio choice. To address this question, we parameterize minimum-variance portfolio weights as a function of a large pool of firm-level characteristics as well as their second-order and cross-product transformations, yielding a total of 4,610 predictors. We find that the gains from employing ML to select relevant predictors are substantial: minimum-variance portfolios achieve lower risk relative to sparse specifications commonly considered in the literature, especially when non-linear terms are added to the predictor space. Moreover, some of the selected predictors that help decreasing portfolio risk also increase returns, leading to minimum-variance portfolios with good performance in terms of Shape ratios in some situations. Our evidence suggests that ad-hoc sparsity can be detrimental to the performance of minimum-variance characteristics-based portfolios.

In this paper, we consider the soft geometric block model (SGBM) with a fixed number $k \geq 2$ of homogeneous communities in the dense regime, and we introduce a spectral clustering algorithm for community recovery on graphs generated by this model. Given such a graph, the algorithm produces an embedding into $\mathbb{R}^{k-1}$ using the eigenvectors associated with the $k-1$ eigenvalues of the adjacency matrix of the graph that are closest to a value determined by the parameters of the model. It then applies $k$-means clustering to the embedding. We prove weak consistency and show that a simple local refinement step ensures strong consistency. A key ingredient is an application of a non-standard version of Davis-Kahan theorem to control eigenspace perturbations when eigenvalues are not simple. We also analyze the limiting spectrum of the adjacency matrix, using a combination of combinatorial and matrix techniques.

The emergence of Open Banking represents a significant shift in financial data management, influencing financial institutions' market dynamics and marketing strategies. This increased competition creates opportunities and challenges, as institutions manage data inflow to improve products and services while mitigating data outflow that could aid competitors. This study introduces a framework to predict customers' propensity to share data via Open Banking and interprets this behavior through Explanatory Model Analysis (EMA). Using data from a large Brazilian financial institution with approximately 3.2 million customers, a hybrid data balancing strategy incorporating ADASYN and NEARMISS techniques was employed to address the infrequency of data sharing and enhance the training of XGBoost models. These models accurately predicted customer data sharing, achieving 91.39% accuracy for inflow and 91.53% for outflow. The EMA phase combined the Shapley Additive Explanations (SHAP) method with the Classification and Regression Tree (CART) technique, revealing the most influential features on customer decisions. Key features included the number of transactions and purchases in mobile channels, interactions within these channels, and credit-related features, particularly credit card usage across the national banking system. These results highlight the critical role of mobile engagement and credit in driving customer data-sharing behaviors, providing financial institutions with strategic insights to enhance competitiveness and innovation in the Open Banking environment.

Conversational agents have made significant progress since ELIZA, expanding their role across various domains, including healthcare, education, and customer service. As these agents become increasingly integrated into daily human interactions, the need for emotional intelligence, particularly empathetic listening, becomes increasingly essential. In this study, we explore how Large Language Models (LLMs) respond when tasked with generating emotionally rich interactions. Starting from a small dataset manually crafted by an expert to reflect empathic behavior, we extended the conversations using two LLMs: ChatGPT and Gemini. We analyzed the emotional progression of the dialogues using both sentiment analysis (via VADER) and expert assessments. While the generated conversations often mirrored the intended emotional structure, human evaluation revealed important differences in the perceived empathy and coherence of the responses. These findings suggest that emotion modeling in dialogues requires not only structural alignment in the expressed emotions but also qualitative depth, highlighting the importance of combining automated and humancentered methods in the development of emotionally competent agents.

Neural networks have become increasingly popular in the last few years as an effective tool for the task of image classification due to the impressive performance they have achieved on this task. In image classification tasks, it is common to use data augmentation strategies to increase the robustness of trained networks to changes in the input images and to avoid overfitting. Although data augmentation is a widely adopted technique, the literature lacks a body of research analyzing the effects data augmentation methods have on the patterns learned by neural network models working on complex datasets. The primary objective of this work is to propose a methodology and set of metrics that may allow a quantitative approach to analyzing the effects of data augmentation in convolutional networks applied to image classification. An important tool used in the proposed approach lies in the concept of class activation maps for said models, which allow us to identify and measure the importance these models assign to each individual pixel in an image when executing the classification task. From these maps, we may then extract metrics over the similarities and differences between maps generated by these models trained on a given dataset with different data augmentation strategies. Experiments made using this methodology suggest that the effects of these data augmentation techniques not only can be analyzed in this way but also allow us to identify different impact profiles over the trained models.

The growing threat posed by deepfake videos, capable of manipulating realities and disseminating misinformation, drives the urgent need for effective detection methods. This work investigates and compares different approaches for identifying deepfakes, focusing on the GenConViT model and its performance relative to other architectures present in the DeepfakeBenchmark. To contextualize the research, the social and legal impacts of deepfakes are addressed, as well as the technical fundamentals of their creation and detection, including digital image processing, machine learning, and artificial neural networks, with emphasis on Convolutional Neural Networks (CNNs), Generative Adversarial Networks (GANs), and Transformers. The performance evaluation of the models was conducted using relevant metrics and new datasets established in the literature, such as WildDeep-fake and DeepSpeak, aiming to identify the most effective tools in the battle against misinformation and media manipulation. The obtained results indicated that GenConViT, after fine-tuning, exhibited superior performance in terms of accuracy (93.82%) and generalization capacity, surpassing other architectures in the DeepfakeBenchmark on the DeepSpeak dataset. This study contributes to the advancement of deepfake detection techniques, offering contributions to the development of more robust and effective solutions against the dissemination of false information.

Low-light image enhancement is crucial for a myriad of applications, from night vision and surveillance, to autonomous driving. However, due to the inherent limitations that come in hand with capturing images in low-illumination environments, the task of enhancing such scenes still presents a formidable challenge. To advance research in this field, we introduce our Low Exposure Night Vision (LENVIZ) Dataset, a comprehensive multi-exposure benchmark dataset for low-light image enhancement comprising of over 230K frames showcasing 24K real-world indoor and outdoor, with-and without human, scenes. Captured using 3 different camera sensors, LENVIZ offers a wide range of lighting conditions, noise levels, and scene complexities, making it the largest publicly available up-to 4K resolution benchmark in the field. LENVIZ includes high quality human-generated ground truth, for which each multi-exposure low-light scene has been meticulously curated and edited by expert photographers to ensure optimal image quality. Furthermore, we also conduct a comprehensive analysis of current state-of-the-art low-light image enhancement techniques on our dataset and highlight potential areas of improvement.

Neural Audio Synthesis (NAS) models offer interactive musical control over high-quality, expressive audio generators. While these models can operate in real-time, they often suffer from high latency, making them unsuitable for intimate musical interaction. The impact of architectural choices in deep learning models on audio latency remains largely unexplored in the NAS literature. In this work, we investigate the sources of latency and jitter typically found in interactive NAS models. We then apply this analysis to the task of timbre transfer using RAVE, a convolutional variational autoencoder for audio waveforms introduced by Caillon et al. in 2021. Finally, we present an iterative design approach for optimizing latency. This culminates with a model we call BRAVE (Bravely Realtime Audio Variational autoEncoder), which is low-latency and exhibits better pitch and loudness replication while showing timbre modification capabilities similar to RAVE. We implement it in a specialized inference framework for low-latency, real-time inference and present a proof-of-concept audio plugin compatible with audio signals from musical instruments. We expect the challenges and guidelines described in this document to support NAS researchers in designing models for low-latency inference from the ground up, enriching the landscape of possibilities for musicians.

Production Lines and Conveying Systems are the staple of modern manufacturing processes. Manufacturing efficiency is directly related to the efficiency of the means of production and conveying. Modelling in the industrial context has always been a challenge due to the complexity that comes along with modern manufacturing standards. Long Short-Term Memory is a pattern recognition Recurrent Neural Network, that is utilised on a simple pneumatic conveying system which transports a wooden block around the system. Recurrent Neural Networks (RNNs) capture temporal dependencies through feedback loops, while Long Short-Term Memory (LSTM) networks enhance this capability by using gated mechanisms to effectively learn long-term dependencies. Conveying systems, representing a major component of production lines, are chosen as the target to model to present an approach applicable in large scale production lines in a simpler format. In this paper data from sensors are used to train the LSTM in order to output an Automaton that models the conveying system. The automaton obtained from the proposed LSTM approach is compared with the automaton obtained from OTALA. The resultant LSTM automaton proves to be a more accurate representation of the conveying system, unlike the one obtained from OTALA.

The integration of large language models (LLMs) into virtual reality (VR) environments has opened new pathways for creating more immersive and interactive digital humans. By leveraging the generative capabilities of LLMs alongside multimodal outputs such as facial expressions and gestures, virtual agents can simulate human-like personalities and emotions, fostering richer and more engaging user experiences. This paper provides a comprehensive review of methods for enabling digital humans to adopt nuanced personality traits, exploring approaches such as zero-shot, few-shot, and fine-tuning. Additionally, it highlights the challenges of integrating LLM-driven personality traits into VR, including computational demands, latency issues, and the lack of standardized evaluation frameworks for multimodal interactions. By addressing these gaps, this work lays a foundation for advancing applications in education, therapy, and gaming, while fostering interdisciplinary collaboration to redefine human-computer interaction in VR.