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Oct 16

What to Remember, What to Reveal: Privacy-Aware Memory for Conversational Agents

Long-term memory enables personalized conversational agents to retain user information across sessions. However, existing memory architectures primarily optimize for utility while neglecting the risks of unnecessarily storing and reusing private attributes such as personally identifiable information (PII). Addressing privacy risks in personalized memory is challenging because simply removing sensitive values can undermine system utility. Therefore, privacy protection for memory agents should govern the full life cycle of sensitive values rather than only sanitizing individual records. To address this gap, we introduce Sanitized Privacy-Mapped Memory (SP-Mem), a privacy-aware memory architecture that decouples memory utility from exact private-value exposure. SP-Mem provides a full life-cycle privacy design that identifies and separates sensitive information from raw user inputs, stores sanitized content and exact private values in isolated structures, and selectively retrieves private values based on task requirements and user consent. We further introduce a privacy-aware memory benchmark that jointly evaluates response quality, privacy behavior, and inference cost. Extensive experiments across multiple LLM-based agents show that SP-Mem achieves stronger personalization while reducing unnecessary privacy exposure. Code and data are available at https://github.com/Jensassss/SP-Mem.

  • 4 authors
·
Aug 16

WorldCraft: From Camera Navigation to Object Manipulation in Interactive Video World Models

Recent video-based world models have made pixel-space environments interactive at the camera level: users can navigate viewpoints while the model generates coherent visual continuations. Yet their action spaces remain incomplete: users can move the camera, but cannot act on individual objects. Since real-world interaction is inherently object-centric, such models remain closer to passive scene observers than truly manipulable environments. We present WorldCraft, a framework that expands interactive video world models from camera navigation to object-level trajectory actions. Given a user click and a sketched path, WorldCraft generates future frames in which the selected object follows the prescribed trajectory while the camera continues to navigate the scene. WorldCraft achieves this through a trajectory-centric control pipeline: First, Normalized World Trajectory (NWT) represents user-drawn motion in a camera-invariant world coordinate system and dynamically re-projects it under the current camera pose, separating object motion from camera-induced screen-space displacement; Spatial-Pathway LoRA (SP-LoRA) then injects this world-space signal through the model's spatial-control pathway, adding object manipulation capability while preserving the pretrained camera controller; finally, Trajectory-Anchored State Persistence (TASP) treats the world trajectory as a persistent spatial state and refreshes autoregressive memory after trajectory-conditioned generation, allowing moved objects to reappear at their updated positions after leaving the camera view. Experiments show that WorldCraft enables accurate object control, preserves the video-based world model's camera fidelity under camera-only evaluation, and maintains object state across long autoregressive rollouts with off-camera excursions.

tencent Tencent
·
May 23 2

Forecasting S&P 500 Using LSTM Models

With the volatile and complex nature of financial data influenced by external factors, forecasting the stock market is challenging. Traditional models such as ARIMA and GARCH perform well with linear data but struggle with non-linear dependencies. Machine learning and deep learning models, particularly Long Short-Term Memory (LSTM) networks, address these challenges by capturing intricate patterns and long-term dependencies. This report compares ARIMA and LSTM models in predicting the S&P 500 index, a major financial benchmark. Using historical price data and technical indicators, we evaluated these models using Mean Absolute Error (MAE) and Root Mean Squared Error (RMSE). The ARIMA model showed reasonable performance with an MAE of 462.1, RMSE of 614, and 89.8 percent accuracy, effectively capturing short-term trends but limited by its linear assumptions. The LSTM model, leveraging sequential processing capabilities, outperformed ARIMA with an MAE of 369.32, RMSE of 412.84, and 92.46 percent accuracy, capturing both short- and long-term dependencies. Notably, the LSTM model without additional features performed best, achieving an MAE of 175.9, RMSE of 207.34, and 96.41 percent accuracy, showcasing its ability to handle market data efficiently. Accurately predicting stock movements is crucial for investment strategies, risk assessments, and market stability. Our findings confirm the potential of deep learning models in handling volatile financial data compared to traditional ones. The results highlight the effectiveness of LSTM and suggest avenues for further improvements. This study provides insights into financial forecasting, offering a comparative analysis of ARIMA and LSTM while outlining their strengths and limitations.

  • 2 authors
·
Jan 28, 2025

Risk forecasting using Long Short-Term Memory Mixture Density Networks

This work aims to implement Long Short-Term Memory mixture density networks (LSTM-MDNs) for Value-at-Risk forecasting and compare their performance with established models (historical simulation, CMM, and GARCH) using a defined backtesting procedure. The focus was on the neural network's ability to capture volatility clustering and its real-world applicability. Three architectures were tested: a 2-component mixture density network, a regularized 2-component model (Arimond et al., 2020), and a 3-component mixture model, the latter being tested for the first time in Value-at-Risk forecasting. Backtesting was performed on three stock indices (FTSE 100, S&P 500, EURO STOXX 50) over two distinct two-year periods (2017-2018 as a calm period, 2021-2022 as turbulent). Model performance was assessed through unconditional coverage and independence assumption tests. The neural network's ability to handle volatility clustering was validated via correlation analysis and graphical evaluation. Results show limited success for the neural network approach. LSTM-MDNs performed poorly for 2017/2018 but outperformed benchmark models in 2021/2022. The LSTM mechanism allowed the neural network to capture volatility clustering similarly to GARCH models. However, several issues were identified: the need for proper model initialization and reliance on large datasets for effective learning. The findings suggest that while LSTM-MDNs provide adequate risk forecasts, further research and adjustments are necessary for stable performance.

  • 1 authors
·
Jan 2, 2025

Hedging Properties of Algorithmic Investment Strategies using Long Short-Term Memory and Time Series models for Equity Indices

This paper proposes a novel approach to hedging portfolios of risky assets when financial markets are affected by financial turmoils. We introduce a completely novel approach to diversification activity not on the level of single assets but on the level of ensemble algorithmic investment strategies (AIS) built based on the prices of these assets. We employ four types of diverse theoretical models (LSTM - Long Short-Term Memory, ARIMA-GARCH - Autoregressive Integrated Moving Average - Generalized Autoregressive Conditional Heteroskedasticity, momentum, and contrarian) to generate price forecasts, which are then used to produce investment signals in single and complex AIS. In such a way, we are able to verify the diversification potential of different types of investment strategies consisting of various assets (energy commodities, precious metals, cryptocurrencies, or soft commodities) in hedging ensemble AIS built for equity indices (S&P 500 index). Empirical data used in this study cover the period between 2004 and 2022. Our main conclusion is that LSTM-based strategies outperform the other models and that the best diversifier for the AIS built for the S&P 500 index is the AIS built for Bitcoin. Finally, we test the LSTM model for a higher frequency of data (1 hour). We conclude that it outperforms the results obtained using daily data.

  • 3 authors
·
Sep 27, 2023