English

New copulas based on general partitions-of-unity and their applications to risk management

Risk Management 2020-12-17 v3

Abstract

We construct new multivariate copulas on the basis of a generalized infinite partition-of-unity approach. This approach allows - in contrast to finite partition-of-unity copulas - for tail-dependence as well as for asymmetry. A possibility of fitting such copulas to real data from quantitative risk management is also pointed out.

Keywords

Cite

@article{arxiv.1505.00288,
  title  = {New copulas based on general partitions-of-unity and their applications to risk management},
  author = {Dietmar Pfeifer and Hervé Awoumlac Tsatedem and Andreas Mändle and Côme Girschig},
  journal= {arXiv preprint arXiv:1505.00288},
  year   = {2020}
}

Comments

23 pages, 24 figures, 4 tables, 2o references