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Yichen Zhu

Yichen Zhu contributes to research discovery and scholarly infrastructure.

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Published work

4 published item(s)

preprint2026arXiv

Dynamic Chunking for Diffusion Language Models

Block discrete diffusion language models factorize a sequence autoregressively over fixed-size positional blocks, decoupling within-block parallel denoising from across-block conditioning. We argue that this rigid partition wastes structure already present in the sequence: blocks defined by position rather than by content separate semantically coherent tokens and group unrelated ones together. We introduce the \textbf{D}ynamic \textbf{C}hunking \textbf{D}iffusion \textbf{M}odel (DCDM), which replaces positional blocks with content-defined semantic chunks. At its core is Chunking Attention, a differentiable layer that routes tokens into $K$ clusters parameterized by learnable subspaces and shaped end-to-end by the diffusion objective. The resulting cluster assignments induce a chunk-causal attention mask under which a discrete diffusion denoiser factorizes the sequence likelihood autoregressively over semantic chunks, strictly generalizing block discrete diffusion. On downstream benchmarks at parameter scales up to 1.5B, DCDM consistently improves over both unstructured and positional-block diffusion baselines, with the advantage stable across scales and visible early in training.

preprint2022arXiv

Derivatives-based portfolio decisions. An expected utility insight

This paper challenges the use of stocks in portfolio construction, instead we demonstrate that Asian derivatives, straddles, or baskets could be more convenient substitutes. Our results are obtained under the assumptions of the Black--Scholes--Merton setting, uncovering a hidden benefit of derivatives that complements their well-known gains for hedging, risk management, and to increase utility in market incompleteness. The new insights are also transferable to more advanced stochastic settings. The analysis relies on the infinite number of optimal choices of derivatives for a maximized expected utility (EUT) agent; we propose risk exposure minimization as an additional optimization criterion inspired by regulations. Working with two assets, for simplicity, we demonstrate that only two derivatives are needed to maximize utility while minimizing risky exposure. In a comparison among one-asset options, e.g. American, European, Asian, Calls and Puts, we demonstrate that the deepest out-of-the-money Asian products available are the best choices to minimize exposure. We also explore optimal selections among straddles, which are better practical choices than out-of-the-money Calls and Puts due to liquidity and rebalancing needs. The optimality of multi-asset derivatives is also considered, establishing that a basket option could be a better choice than one-asset Asian call/put in many realistic situations.

preprint2022arXiv

LogStamp: Automatic Online Log Parsing Based on Sequence Labelling

Logs are one of the most critical data for service management. It contains rich runtime information for both services and users. Since size of logs are often enormous in size and have free handwritten constructions, a typical log-based analysis needs to parse logs into structured format first. However, we observe that most existing log parsing methods cannot parse logs online, which is essential for online services. In this paper, we present an automatic online log parsing method, name as LogStamp. We extensively evaluate LogStamp on five public datasets to demonstrate the effectiveness of our proposed method. The experiments show that our proposed method can achieve high accuracy with only a small portion of the training set. For example, it can achieve an average accuracy of 0.956 when using only 10% of the data training.

preprint2022arXiv

Optimal market completion through financial derivatives with applications to volatility risk

This paper investigates the optimal choices of financial derivatives to complete a financial market in the framework of stochastic volatility (SV) models. We introduce an efficient and accurate simulation-based method, applicable to generalized diffusion models, to approximate the optimal derivatives-based portfolio strategy. We build upon the double optimization approach (i.e. expected utility maximization and risk exposure minimization) proposed in Escobar-Anel et al. (2022); demonstrating that strangle options are the best choices for market completion within equity options. Furthermore, we explore the benefit of using volatility index derivatives and conclude that they could be more convenient substitutes when only long-term maturity equity options are available.