--- title: Quant Letter No. 125: January 2026, Week 3 url: https://www.ml-quant.com/issues/2026-01-16/ site: ML-Quant (https://www.ml-quant.com) updated: 2026-09-26 license: Summaries CC BY 4.0; links go to the original sources index: https://www.ml-quant.com/llms.txt issue_date: 2026-01-16 --- # Quant Letter No. 125: January 2026, Week 3 Sent 2026-01-16. 48 items. ## arXiv ### Finance - __[Finetuning LLaMA-3-8B for Financial NER with LoRA](https://arxiv.org/abs/2601.10043v1)__: The paper shows that using instruction fine-tuning and Low-Rank Adaptation with Meta's Llama 3 enhances financial named-entity recognition, leading to top performance in converting unformatted reports into organized knowledge. (2026-01-15, shares: 0) · https://www.ml-quant.com/papers/arxiv/2601.10043/ ### Miscellaneous - __[Adaptive Dataflow for Financial Time-Series](https://arxiv.org/abs/2601.10143v1)__: A new adaptive data management system enhances model performance in quantitative finance by constantly updating to reflect market changes, addressing the shortcomings of relying solely on historical data. (2026-01-15, shares: 1) · https://www.ml-quant.com/papers/arxiv/2601.10143/ ### Historical Trending - __[DeePM: Deep Learning for Portfolio Management](https://arxiv.org/abs/2601.05975v1)__: Deep Learning for Portfolio Management: DeePM uses deep learning to improve macro portfolio management, delivering better risk-adjusted returns than traditional methods across various economic conditions. (2026-01-09, shares: 1) · https://www.ml-quant.com/papers/arxiv/2601.05975/ - __[NewsBased Forecasting for Volatility](https://arxiv.org/abs/2108.00480v5)__: A new NLP framework shows that adding news text can improve stock volatility forecasting, particularly during volatile times, when combined with standard models. (2021-08-01, shares: 0) · https://www.ml-quant.com/papers/arxiv/2108.00480/ - __[Tech Adoption in Financial Networks](https://arxiv.org/abs/2601.04246v1)__: This study develops a framework to analyze how technology spreads in financial networks, uncovering the dynamics of adoption and the effects of firm traits. (2026-01-06, shares: 0) · https://www.ml-quant.com/papers/arxiv/2601.04246/ - __[Optimizing Assortment and Pricing](https://arxiv.org/abs/2601.04220v1)__: We propose exact algorithms for optimizing pricing in assortment strategies under a generalized nested logit model, offering better quality and scalability for large applications than current approaches. (2025-12-25, shares: 0) · https://www.ml-quant.com/papers/arxiv/2601.04220/ ## RePEc ### Historical Trending - __[Predicting VIX with ML](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fhdl.handle.net%2F10.1080%2F14697688.2024.2439458%3Bh%3Drepec%3Ataf%3Aquantf%3Av%3A24%3Ay%3A2024%3Ai%3A12%3Ap%3A1857-1873)__: This study improves VIX predictions using machine learning, emphasizing the role of jobless claims in enhancing trading strategies. (2024-09-19, shares: 12) · https://www.ml-quant.com/papers/repec/taf-quantf-v-24-y-2024-i-12-p-1857-1873/ - __[Identifying Volatile KSE-30 Stocks](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Flink.springer.com%2F10.1007%2Fs43069-025-00421-4%3Bh%3Drepec%3Aspr%3Asnopef%3Av%3A6%3Ay%3A2025%3Ai%3A1%3Ad%3A10.1007_s43069-025-00421-4)__: The research employs machine learning to evaluate stocks on the Pakistan Stock Exchange, offering a method for optimizing portfolios during market fluctuations. (2025-05-04, shares: 10) · https://www.ml-quant.com/papers/repec/spr-snopef-v-6-y-2025-i-1-d-10-1007-s43069-025-00421-4/ - __[Automated Trading in Emerging Markets](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Flink.springer.com%2F10.1186%2Fs40854-025-00754-3%3Bh%3Drepec%3Aspr%3Afininn%3Av%3A11%3Ay%3A2025%3Ai%3A1%3Ad%3A10.1186_s40854-025-00754-3)__: Analyzing algorithmic trading versus passive investing, the article highlights risks in emerging markets and proposes an Adaptive Trading System for better portfolio management. (2025-11-03, shares: 9) · https://www.ml-quant.com/papers/repec/spr-fininn-v-11-y-2025-i-1-d-10-1186-s40854-025-00754-3/ - __[Dynamic Risk Parity Optimization](https://econpapers.repec.org/scripts/redir.pf?u=https%3A%2F%2Fdoi.org%2F10.1111%2Fjtsa.12792%3Bh%3Drepec%3Abla%3Ajtsera%3Av%3A46%3Ay%3A2025%3Ai%3A2%3Ap%3A353-377)__: The paper enhances risk parity portfolio optimization models, demonstrating better risk-adjusted returns and lower sensitivity to market volatility. (2025-03-07, shares: 9) · https://www.ml-quant.com/papers/repec/bla-jtsera-v-46-y-2025-i-2-p-353-377/ - __[Deep Learning vs. Traditional Models in Eurozone Banks](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.icfm.ro%2FRePEc%2Fvls%2Fvls_pdf%2Fvol28i4p29-42.pdf%3Bh%3Drepec%3Avls%3Afinstu%3Av%3A28%3Ay%3A2024%3Ai%3A4%3Ap%3A29-42)__: A comparison of stock price prediction methods in the Eurozone finds traditional machine learning techniques more effective than deep learning for banking sector forecasts. (2024-10-11, shares: 7) · https://www.ml-quant.com/papers/repec/vls-finstu-v-28-y-2024-i-4-p-29-42/ - __[Adaptive Market Hypothesis and Sharpe Ratio](https://econpapers.repec.org/scripts/redir.pf?u=https%3A%2F%2Farchive.conscientiabeam.com%2Findex.php%2F29%2Farticle%2Fview%2F4102%2F8464%3Bh%3Drepec%3Apkp%3Ateafle%3Av%3A12%3Ay%3A2025%3Ai%3A1%3Ap%3A120-142%3Aid%3A4102)__: Sharpe Ratio trading strategies beat buy-and-hold strategies, confirming the Adaptive Market Hypothesis in global stock indices from 1998 to 2023. (2025-08-27, shares: 8) · https://www.ml-quant.com/papers/repec/pkp-teafle-v-12-y-2025-i-1-p-120-142-id-4102/ - __[News Sentiment and Stock Volatility](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS0165176524006086%3Bh%3Drepec%3Aeee%3Aecolet%3Av%3A247%3Ay%3A2025%3Ai%3Ac%3As0165176524006086)__: Accurately measured news sentiment affects stock return volatility, with GPT-4 outperforming RavenPack in analyzing Twitter data from 2019-2023. (2025-11-21, shares: 6) · https://www.ml-quant.com/papers/repec/eee-ecolet-v-247-y-2025-i-c-s0165176524006086/ - __[FinTech Dynamics in Chinese Markets](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fhdl.handle.net%2F10.1080%2F01605682.2024.2329156%3Bh%3Drepec%3Ataf%3Atjorxx%3Av%3A76%3Ay%3A2025%3Ai%3A1%3Ap%3A97-110)__: A new machine learning method for time series data surpasses traditional Box-Jenkins models, showing increased accuracy for financial data during COVID-19. (2025-06-06, shares: 6) · https://www.ml-quant.com/papers/repec/taf-tjorxx-v-76-y-2025-i-1-p-97-110/ - __[Machine Learning for Tail Risk Management](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS0305048324002135%3Bh%3Drepec%3Aeee%3Ajomega%3Av%3A133%3Ay%3A2025%3Ai%3Ac%3As0305048324002135)__: New deep learning frameworks enhance accuracy in estimating Value at Risk and Expected Shortfall, improving risk management in finance. (2025-04-18, shares: 6) · https://www.ml-quant.com/papers/repec/eee-jomega-v-133-y-2025-i-c-s0305048324002135/ - __[Consumption Expectations and Financial Risk Premia](https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS0165176524006037%3Bh%3Drepec%3Aeee%3Aecolet%3Av%3A247%3Ay%3A2025%3Ai%3Ac%3As0165176524006037)__: Disagreement in macroeconomic expectations affects financial risk premia and stock market returns, influenced by varying professional forecasts. (2025-04-17, shares: 5) · https://www.ml-quant.com/papers/repec/eee-ecolet-v-247-y-2025-i-c-s0165176524006037/ ## Papers with code ### Trending - __[Scalable Conditional Memory](https://github.com/deepseek-ai/Engram)__: Conditional memory in Transformer models improves knowledge retrieval and reasoning by efficiently managing data sparsity. (2026-01-14, shares: 2083) - __[Unified Multimodal Retrieval](https://github.com/QwenLM/Qwen3-VL-Embedding)__: The Qwen3VLEmbedding and Qwen3VLReranker models form a precise multimodal search system using cross-attention techniques. (2026-01-12, shares: 600) - __[Advancements in 3D Orientation](https://github.com/SpatialVision/Orient-Anything-V2)__: Orient Anything V2 improves understanding of 3D orientation through new asset synthesis and rotation prediction methods. (2026-01-12, shares: 68) - __[Optimized Code Generation](https://github.com/QuantaAlpha/EvoControl)__: The Controlled SelfEvolution method boosts code generation by employing genetic evolution and better exploration strategies. (2026-01-15, shares: 63) ### Rising - __[Automated Research Evaluation](https://github.com/Infinity-AILab/DeepResearchEval)__: DeepResearchEval uses adaptable agents to automate complex research tasks, verifying facts without relying on citations. (2026-01-15, shares: 61) - __[Linear Attention Enhancement](https://github.com/DAGroup-PKU/MHLA)__: MultiHead Linear Attention boosts performance by balancing representational diversity and computational efficiency while increasing expressive capabilities. (2026-01-13, shares: 47) - __[Synthetic Data for Programming](https://github.com/JieWu02/X-Coder)__: Code LLMs trained on synthetic data excel in competitive programming compared to traditional models, reducing dependence on real datasets. (2026-01-13, shares: 38) - __[SelfEvolving Reasoning Agents](https://github.com/facebookresearch/drzero)__: A data-free self-evolution framework enables large language models to improve reasoning by generating their own questions, achieving performance similar to supervised learning. (2026-01-13, shares: 34) - __[Stable Sinkhorn-Knopp Iterations](https://github.com/FFTYYY/mhc-lite)__: Hyperconnections with dynamic residual matrices improve convergence stability through a new reparameterization technique that ensures precise doubly stochasticity. (2026-01-13, shares: 26) ## GitHub ### Finance - __[TickVault: Forex Data Processing](https://github.com/keyhankamyar/TickVault)__: Forex Data Processing: A Python library that allows users to download and process Dukascopy historical financial data easily, with features like resumable downloads. (2025-10-10, shares: 14) - __[Rust Market Makers: Stoikov Model](https://github.com/joaquinbejar/market-maker-rs)__: Stoikov Model: A Rust library for automated trading that incorporates market making strategies, specifically the Avellaneda-Stoikov model. (2025-10-13, shares: 31) - __[Rust Quant Trading System](https://github.com/Erio-Harrison/rust-trade)__: A quantitative trading system built with the Rust programming language for enhanced trading performance. (2024-12-13, shares: 297) - __[AlphaGPT: Factor Mining in Markets](https://github.com/imbue-bit/AlphaGPT)__: Factor Mining in Markets: A method for analyzing stock and crypto markets in China using symbolic regression to improve liquidity based on Uniswap V4 math. (2026-01-08, shares: 423) - __[Unified API for Prediction Trading](https://github.com/qoery-com/pmxt)__: A single API that facilitates trading across different prediction markets. (2026-01-08, shares: 103) ### Trending - __[CoinorPulp: LP API](https://github.com/coin-or/pulp)__: LP API: A Python library has been developed to solve linear programming problems in an efficient manner. (2015-03-15, shares: 2394) - __[IQuestLab: Coding Tool](https://github.com/IQuestLab/IQuest-Coder-V1)__: Coding Tool: GPT-5 Pro allows users to customize context and upload files for tailored guidance on challenges. (2025-12-31, shares: 1187) - __[Steipeteoracle: GPT-5](https://github.com/steipete/oracle)__: GPT-5: Makepad enables the creation of applications by integrating artificial intelligence capabilities. (2025-11-14, shares: 1009) - __[ZhangHanDong: AI Building](https://github.com/ZhangHanDong/makepad-skills)__: AI Building: Claude Skills improve note-taking in Obsidian, enhancing overall productivity. (2026-01-10, shares: 590) ## Podcasts ### Quantitative - __[Income Strategies for 2026](https://pdcn.co/e/www.buzzsprout.com/2034153/episodes/18496541-fixed-equity-income-strategies-for-2026-rates-rotation-returns.mp3)__: Michael Gayed interviews Jay Hatfield on adapting fixed income and equity strategies for income investors in 2026 amid changing interest rates. (2026-01-12, shares: 11) - __[Market Valuations: Bubble Analysis](https://alphaexchange.simplecast.com/episodes/abdrew-lapthorne-global-head-of-quantitative-research-societe-generale-Pj_tqGkw)__: Bubble Analysis: Andrew Lapthorne examines megacap stock concentration, questioning if current valuations suggest a bubble while noting the effects of passive investing. (2026-01-15, shares: 9) - __[Selectivity in ETF Investing](https://pdcn.co/e/www.buzzsprout.com/2034153/episodes/18497015-research-selectivity-davis-advisors-market-outlook-active-etfs.mp3)__: Dodd Kittsley emphasizes fundamental research and selective high-conviction portfolios as key for long-term growth in a market with normalized interest rates. (2026-01-12, shares: 8) - __Market Insights: Metals & Bonds__: Metals & Bonds: Marc Faber highlights market volatility, the resurgence of precious metals and overlooked bonds, and the critical role of diversification in uncertain economies. (2026-01-16, shares: 7) - __[Geopolitical Impact on Tech Investments](https://pdcn.co/e/www.buzzsprout.com/2034153/episodes/18503070-how-geopolitics-and-national-security-are-changing-tech-investing.mp3)__: Aram Babikian discusses how geopolitical tensions shape technology investing, stressing national security's impact on investment strategies amid US-China rivalry. (2026-01-13, shares: 6) ### Related - __[Capitalism's Collapse](http://localhost:8888/TopTradersUnplugged/ttu-2021/homepage/gm94-when-capitalism-reboots-and-crashes-again-ft-mark-blyth)__: Mark Blyth explains that the decline of neoliberalism is leading to a resurgence of imperial rivalries and economic instability. (2026-01-14, shares: 5) - __[GSEs and MBS Impacts](https://atanyrate.podbean.com/e/at-any-rate-the-gses-and-their-200bn-grand-spread-experiment/)__: Ipek Ozil and her team examine how major GSE purchases of Agency MBS were influenced by a significant Trump social media post. (2026-01-15, shares: 5) - __[End of Globalization](http://localhost:8888/TopTradersUnplugged/ttu-2021/homepage/si382-when-optimization-becomes-fragility-ft-richard-brennan)__: Rich highlights changes in global trade dynamics and stresses the importance of humility in following market trends. (2026-01-10, shares: 5) - __[AI and Rethinking Retirement](https://pdcn.co/e/www.buzzsprout.com/2034153/episodes/18520715-the-bailout-economy-luke-lloyd-on-ai-liquidity-and-why-retirement-thinking-is-broken.mp3)__: Luke Lloyd discusses how investor mindsets are changing due to AI and government actions impacting wealth management. (2026-01-16, shares: 5) - __[Alpha in Market Volatility](https://audioboom.com/posts/8834707)__: Adil Mirza provides strategies for navigating market volatility and finding opportunities for alpha in 2026. (2026-01-15, shares: 3) ## Blogs ### Related - __[Profits vs. Growth](https://stockviz.substack.com/p/growth-at-any-cost)__: The article explains that focusing on key performance metrics can enhance a business's overall success. (2026-01-10, shares: 0) ## X / Twitter ### Miscellaneous - __[Martingale Strategy Risks in Trader's Downfall](https://x.com/quantseeker/status/2010643108254699778)__: A seasoned options trader lost a lot of money by applying a gambling strategy to trading, showing the dangers of mixing gambling methods with investing. (2026-01-12, shares: 1) ## Reddit ### Quantitative - __[Commodity Price Dashboard](https://www.reddit.com/r/algotrading/comments/1q9qa4j/opensource_dashboard_for_tracking_daily_commodity/)__: (2026-01-11, shares: 78) ### Rising - __[IBKR API Tips](https://www.reddit.com/r/algotrading/comments/1q9fquy/ibkr_api_hosted_current_best_practice/)__: (2026-01-10, shares: 29)