There is this risk if the corresponding parameter is chosen too small; but it did not seem to be a problem for the data used here.

This paper shows that text-only Language Models (LM) can learn to ground spatial relations like "left of" or "below" if they are provided with explicit location information of objects and they are properly trained to leverage those locations. We perform experiments on a verbalized version of the Visual Spatial Reasoning (VSR) dataset, where images are coupled with textual statements which contain real or fake spatial relations between two objects of the image. We verbalize the images using an off-the-shelf object detector, adding location tokens to every object label to represent their bounding boxes in textual form. Given the small size of VSR, we do not observe any improvement when using locations, but pretraining the LM over a synthetic dataset automatically derived by us improves results significantly when using location tokens. We thus show that locations allow LMs to ground spatial relations, with our text-only LMs outperforming Vision-and-Language Models and setting the new state-of-the-art for the VSR dataset. Our analysis show that our text-only LMs can generalize beyond the relations seen in the synthetic dataset to some extent, learning also more useful information than that encoded in the spatial rules we used to create the synthetic dataset itself.

In this paper, we develop a hybrid approach to forecasting the volatility and risk of financial instruments by combining common econometric GARCH time series models with deep learning neural networks. For the latter, we employ Gated Recurrent Unit (GRU) networks, whereas four different specifications are used as the GARCH component: standard GARCH, EGARCH, GJR-GARCH and APARCH. Models are tested using daily logarithmic returns on the S&P 500 index as well as gold price Bitcoin prices, with the three assets representing quite distinct volatility dynamics. As the main volatility estimator, also underlying the target function of our hybrid models, we use the price-range-based Garman-Klass estimator, modified to incorporate the opening and closing prices. Volatility forecasts resulting from the hybrid models are employed to evaluate the assets' risk using the Value-at-Risk (VaR) and Expected Shortfall (ES) at two different tolerance levels of 5% and 1%. Gains from combining the GARCH and GRU approaches are discussed in the contexts of both the volatility and risk forecasts. In general, it can be concluded that the hybrid solutions produce more accurate point volatility forecasts, although it does not necessarily translate into superior VaR and ES forecasts.