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The study of systemic risk is often presented through the analysis of several measures referring to quantities used by practitioners and policy makers. Almost invariably, those measures evaluate the size of the impact that exogenous events…

Physics and Society · Physics 2023-04-13 Luka Klinčić , Vinko Zlatić , Guido Caldarelli , Hrvoje Štefančić

The Value-at-Risk (VaR) is a widely used instrument in financial risk management. The question of estimating the VaR of loss return distributions at extreme levels is an important question in financial applications, both from operational…

Applications · Statistics 2021-04-21 Hibiki Kaibuchi , Yoshinori Kawasaki , Gilles Stupfler

We introduce an ensemble learning method based on Gaussian Process Regression (GPR) for predicting conditional expected stock returns given stock-level and macro-economic information. Our ensemble learning approach significantly reduces the…

Risk Management · Quantitative Finance 2026-03-10 Damir Filipović , Puneet Pasricha

In this work we introduce the class of beta autoregressive fractionally integrated moving average models for continuous random variables taking values in the continuous unit interval $(0,1)$. The proposed model accommodates a set of…

In this paper, we consider subgeometric (specifically, polynomial) ergodicity of univariate nonlinear autoregressions with autoregressive conditional heteroskedasticity (ARCH). The notion of subgeometric ergodicity was introduced in the…

Econometrics · Economics 2025-01-15 Mika Meitz , Pentti Saikkonen

This study introduces a new analytical framework for quantifying multivariate risk measures. Using the Wishart process, which is a stochastic process with values in the space of positive definite matrices, we derive several conditional tail…

Risk Management · Quantitative Finance 2026-02-09 Jose Da Fonseca , Patrick Wong

We consider finite-horizon Markov Decision Processes where parameters, such as transition probabilities, are unknown and estimated from data. The popular distributionally robust approach to addressing the parameter uncertainty can sometimes…

Systems and Control · Electrical Eng. & Systems 2022-10-07 Yifan Lin , Yuxuan Ren , Enlu Zhou

This paper proposes a new approach to estimating the distribution of a response variable conditioned on observing some factors. The proposed approach possesses desirable properties of flexibility, interpretability, tractability and…

Methodology · Statistics 2023-03-16 Cheng Peng , Stanislav Uryasev

This research presents a framework for quantitative risk management in volatile markets, specifically focusing on expectile-based methodologies applied to the FTSE 100 index. Traditional risk measures such as Value-at-Risk (VaR) have…

Risk Management · Quantitative Finance 2025-07-21 Abiodun Finbarrs Oketunji

Generalized autoregressive conditionally heteroskedastic (GARCH) processes are widely used for modelling features commonly found in observed financial returns. The extremal properties of these processes are of considerable interest for…

Computation · Statistics 2019-08-20 Fabrizio Laurini , Paul Fearnhead , Jonathan A. Tawn

This paper provides an insight to the time-varying dynamics of the shape of the distribution of financial return series by proposing an exponential weighted moving average model that jointly estimates volatility, skewness and kurtosis over…

Risk Management · Quantitative Finance 2012-06-08 A. Gabrielsen , P. Zagaglia , A. Kirchner , Z. Liu

Conditions for geometric ergodicity of multivariate autoregressive conditional heteroskedasticity (ARCH) processes, with the so-called BEKK (Baba, Engle, Kraft, and Kroner) parametrization, are considered. We show for a class of BEKK-ARCH…

Statistics Theory · Mathematics 2017-12-06 Rasmus Pedersen , Olivier Wintenberger

The multivariate conditional probability distribution models the effects of a set of variables onto the statistical properties of another set of variables. In the study of systemic risk in a financial system, the multivariate conditional…

Risk Management · Quantitative Finance 2021-05-05 Tomaso Aste

Starting from the global financial crisis to the more recent disruptions brought about by geopolitical tensions and public health crises, the volatility of risk in financial markets has increased significantly. This underscores the…

Risk Management · Quantitative Finance 2026-01-22 Fei Sun , Jingchao Li , Jieming Zhou

This paper introduces a Nearly Unstable INteger-valued AutoRegressive Conditional Heteroskedasticity (NU-INARCH) process for dealing with count time series data. It is proved that a proper normalization of the NU-INARCH process endowed with…

Methodology · Statistics 2021-07-19 Wagner Barreto-Souza , Ngai Hang Chan

L\'evy processes are widely used in financial mathematics, telecommunication, economics, queueing theory and natural sciences for modelling. We propose an essentially asymptotically efficient estimation method for the system parameters of…

Statistics Theory · Mathematics 2014-04-14 Máté Mánfay , László Gerencsér , Zsanett Orlovits

We develop recursive, data-driven, stochastic subgradient methods for optimizing a new, versatile, and application-driven class of convex risk measures, termed here as mean-semideviations, strictly generalizing the well-known and popular…

Optimization and Control · Mathematics 2018-10-30 Dionysios S. Kalogerias , Warren B. Powell

This paper proposes the asymmetric linear double autoregression, which jointly models the conditional mean and conditional heteroscedasticity characterized by asymmetric effects. A sufficient condition is established for the existence of a…

Methodology · Statistics 2021-04-22 Songhua Tan , Qianqian Zhu

This paper introduces a Threshold Asymmetric Conditional Autoregressive Range (TACARR) formulation for modeling the daily price ranges of financial assets. It is assumed that the process generating the conditional expected ranges at each…

Econometrics · Economics 2022-03-18 Isuru Ratnayake , V. A. Samaranayake

We propose a non-asymptotic convergence analysis of a two-step approach to learn a conditional value-at-risk (VaR) and a conditional expected shortfall (ES) using Rademacher bounds, in a non-parametric setup allowing for heavy-tails on the…

Computational Finance · Quantitative Finance 2024-09-20 D Barrera , S Crépey , E Gobet , Hoang-Dung Nguyen , B Saadeddine