Applying the Observable Matrix Dynamics toolkit to S&P 500 data yields crisis-specific correlation geometries, a market that never settles into a stable structure, and a weak episodic time-asymmetry in the volatility ranking.
Learning as Observable Matrix Dynamics: Diffusive Relaxations versus Phase Transitions
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abstract
Observable Matrix Dynamics (OMD) is a diagnostic framework that probes the dynamics of high-dimensional internal representations of inputs by a neural network via a fixed-size $N \times N$ distance matrix $M(t)$ on a held set of $N$ inputs. OMD uses methods of random matrix theory and particle dynamics to explore spectral reorganisations that are missed by scalar loss functions, but are informative of the training process. We read $M(t)$ against a perturbative ambient-versus-latent decomposition extending the Bogomolny--Bohigas--Schmit (BBS) theory of random distance matrices, with per-snapshot diagnostics for the top-of-spectrum band structure and ambient noise, trajectory-level observables linking snapshots, and a 3D MDS embedding (bottom-three eigenvectors) rendering training as a moving particle cloud. Across seven experiments, diffusive regimes lack stable top-of-spectrum band structure, while sharp endogenous or externally driven reorganisations produce stable fingerprints: consistent with smooth or product latent geometries in BBS-adjacent cases, and with finite-cluster or Fourier-soliton structures otherwise. OMD thus reads the geometric regime of a representation rather than reporting a single intrinsic dimension.
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Observable Matrix Dynamics of Stocks
Applying the Observable Matrix Dynamics toolkit to S&P 500 data yields crisis-specific correlation geometries, a market that never settles into a stable structure, and a weak episodic time-asymmetry in the volatility ranking.