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1
Intro
2
Important legal Information
3
Introduction
4
Quantitative finance
5
Observations
6
Machine learning
7
Critical difference
8
Intrinsic
9
Theorems
10
Ridge regression
11
Maximum likelihood estimation
12
Bayesian estimation
13
Model invariance summary
14
Partial solution
15
New solution
16
Function norms
17
Ridge with linear invariance
18
Lasso with linear invariance
19
Forests
20
Gradient boost with functional regularization
21
Gradient boost with pixie dust
22
Conclusions
23
Questions
Description:
Explore the concept of model invariants and functional regularization in this 50-minute virtual talk presented by the SIAM Activity Group on Financial Mathematics and Engineering. Delve into the importance of creating models that extract facts about data itself rather than arbitrary factors. Examine different modeling approaches like regression, MLE, and Bayesian estimation, comparing their invariance properties to those of regularized regressions. Discover a proposed alternative called functional regularization, which aims to correct limitations in traditional regularization methods. Learn how this framework can make models invariant to linear transformations while offering greater flexibility and ease of understanding. Gain insights into applications in quantitative finance and machine learning, exploring topics such as ridge regression, lasso, forests, and gradient boosting with functional regularization.

Model Invariants and Functional Regularization

Society for Industrial and Applied Mathematics
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