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A Hybrid LSTM-XGBoost Framework for Multi-Horizon Stock Return Prediction Across Diversified Equity Portfolios

Hybrid LSTM-XGBoost model predicts multi-horizon returns for 14 US equities, cutting 30-day RMSE to about one-third of a standalone LSTM baseline.

The paper combines a two-layer LSTM (64 hidden units) processing 60-day windows of five market features with an XGBoost regressor over a 78-dimensional hybrid feature vector including 14 technical indicators. It is trained on pooled data for 14 US equities across six sectors using chronological splits and per-stock MinMaxScaling to prevent look-ahead bias, and evaluated at 30, 90, 252, and 365 trading-day horizons. The hybrid achieves test RMSE of 0.0949 at 30 days, roughly one-third of the standalone LSTM, while 97.6% directional accuracy at 365 days largely tracks the base rate of positive returns.

arXiv cs.AI / cs.LG / cs.CL · 4d agoAI research

Quantum Feature Engineering for Credit Default Prediction: When and Why IQP Circuits Help Linear Classifiers

Quantum IQP circuit features lift logistic-regression credit-default F1 from 0.462 to 0.517, beating Kernel PCA at an equal feature budget.

Using the UCI Default of Credit Card Clients dataset and five-fold cross-validation, an 8-qubit IQP circuit adds 16 features that raise Logistic Regression F1 from 0.462 to 0.517 (+0.055, p < 0.0001). Kernel PCA, the best classical non-linear alternative, reaches only 0.493 at the same feature count, with the gap surviving Benjamini-Hochberg correction across 12 tests (p = 0.00007). Only the linear classifier benefits, pointing to a linear-expressivity mechanism. Feature selection matters: Random Forest importance-guided selection reaches F1 = 0.523 while maximally uncorrelated features drop to 0.496.

arXiv cs.AI / cs.LG / cs.CL · 6d agoAI research

Why Is SHAP Not a Reliable Standalone Explanation Framework for Malware Detection?

arXiv paper shows SHAP gives unreliable standalone explanations for malware detection, with attribution dilution and sign reversal in dependent PE feature spaces.

The paper argues SHAP's formal guarantees are insufficient for reliable malware interpretation because the explained feature-coalition game is fixed only by analyst choices, not by malware behavior in the data. In static Portable Executable feature spaces, dependent feature groups cause conditional SHAP to dilute credit by a factor of 1/m across redundant features, attribute importance to features the model never uses, and even reverse attribution signs; interventional SHAP queries off-manifold coalitions no real executable exhibits. Experiments on EMBER-2018, EMBER-2024, and BODMAS with fixed LightGBM and XGBoost detectors confirm these effects. The authors position SHAP as a limited diagnostic requiring explicit data-distribution statements and domain validation, not a standalone explanation framework.

arXiv cs.CR · 12d agoResearch1