English
Related papers

Related papers: Nonparametric test for a constant beta between \It…

200 papers

It is difficult to choose detection thresholds for tests of non-stationarity that assume {\em a priori} a noise model if the data is statistically uncharacterized to begin with. This is a potentially serious problem when an automated…

General Relativity and Quantum Cosmology · Physics 2009-12-30 Soumya D. Mohanty

In contingency table analysis, the odds ratio is a commonly applied measure used to summarize the degree of association between two categorical variables, say R and S. Suppose now that for each individual in the table, a vector of…

Methodology · Statistics 2012-11-16 Francis K. C. Hui , Gery Geenens

The purpose of this paper is to test the time-invariance of the beta coefficients estimated by the Adaptive Multi-Factor (AMF) model. The AMF model is implied by the generalized arbitrage pricing theory (GAPT), which implies constant beta…

Statistical Finance · Quantitative Finance 2021-04-27 Liao Zhu , Robert A. Jarrow , Martin T. Wells

The general method is proposed for constructing a family of martingale measures for a wide class of evolution of risky assets. The sufficient conditions are formulated for the evolution of risky assets under which the family of equivalent…

Pricing of Securities · Quantitative Finance 2020-10-27 N. S. Gonchar

Value-at-Risk and its conditional allegory, which takes into account the available information about the economic environment, form the centrepiece of the Basel framework for the evaluation of market risk in the banking sector. In this…

Methodology · Statistics 2019-10-03 Gery Geenens , Richard Dunn

We propose the density ratio permutation test, a hypothesis test that assesses whether the ratio between two densities is proportional to a known function based on independent samples from each distribution. The test uses an efficient…

Methodology · Statistics 2026-01-14 Alberto Bordino , Thomas B. Berrett

Consider a high-dimensional linear regression problem, where the number of covariates is larger than the number of observations and the interest is in estimating the conditional variance of the response variable given the covariates. A…

Statistics Theory · Mathematics 2019-03-29 David Azriel

A theoretical expression is derived for the mean squared error of a nonparametric estimator of the tail dependence coefficient, depending on a threshold that defines which rank delimits the tails of a distribution. We propose a new method…

Methodology · Statistics 2023-07-25 Matthieu Garcin , Maxime L. D. Nicolas

Correlated proportions appear in many real-world applications and present a unique challenge in terms of finding an appropriate probabilistic model due to their constrained nature. The bivariate beta is a natural extension of the well-known…

Methodology · Statistics 2023-03-03 Lucas Machado Moschen , Luiz Max Carvalho

On a probability space $(\Omega,\mathcal{A},\mathbb{Q})$ we consider two filtrations $\mathbb{F}\subset \mathbb{G}$ and a $\mathbb{G}$ stopping time $\theta$ such that the $\mathbb{G}$ predictable processes coincide with $\mathbb{F}$…

Computational Finance · Quantitative Finance 2017-02-06 Stéphane Crépey , Shiqi Song

Beta is a widely used quantity in investment analysis. We review the common interpretations that are applied to beta in finance and show that the standard method of estimation - least squares regression - is inconsistent with these…

Portfolio Management · Quantitative Finance 2011-09-22 Chris Tofallis

In this paper, we focus on the problem of stable prediction across unknown test data, where the test distribution is agnostic and might be totally different from the training one. In such a case, previous machine learning methods might…

Machine Learning · Computer Science 2020-06-11 Kun Kuang , Bo Li , Peng Cui , Yue Liu , Jianrong Tao , Yueting Zhuang , Fei Wu

In this article we show how to analyze the covariation of bond prices nonparametrically and robustly, staying consistent with a general no-arbitrage setting. This is, in particular, motivated by the problem of identifying the number of…

Statistical Finance · Quantitative Finance 2024-07-01 Dennis Schroers

Given discrete time observations over a fixed time interval, we study a nonparametric Bayesian approach to estimation of the volatility coefficient of a stochastic differential equation. We postulate a histogram-type prior on the volatility…

Methodology · Statistics 2019-04-01 Shota Gugushvili , Frank van der Meulen , Moritz Schauer , Peter Spreij

The need to test whether two random vectors are independent has spawned a large number of competing measures of dependence. We are interested in nonparametric measures that are invariant under strictly increasing transformations, such as…

Statistics Theory · Mathematics 2017-08-21 Luca Weihs , Mathias Drton , Nicolai Meinshausen

The Stratified Bootstrap Test (SBT) provides a nonparametric, resampling-based framework for assessing the stability of group-specific ranking patterns in multivariate survey or rating data. By repeatedly resampling observations and…

Methodology · Statistics 2025-12-18 Ehsan Mohammadi , Fanghua Chen , Yizhou Cai , Yun Yang , Ting Fung Ma , Lu Zhou

We propose nonparametric estimators of the occupation measure and the occupation density of the diffusion coefficient (stochastic volatility) of a discretely observed It\^{o} semimartingale on a fixed interval when the mesh of the…

Statistics Theory · Mathematics 2014-01-30 Jia Li , Viktor Todorov , George Tauchen

We consider the moderate deviations behaviors for two (co-) volatility estima-tors: generalised bipower variation, Hayashi-Yoshida estimator. The results are obtained by using a new result about the moderate deviations principle for…

Probability · Mathematics 2017-02-06 Hacène Djellout , Arnaud Guillin , Hui Jiang , Yacouba Samoura

Measuring the concentration of random variables is a fundamental concept in probability and statistics. Here, we explore a type of concentration measure for continuous random variables with bounded support and use it to provide a notion of…

Statistics Theory · Mathematics 2024-06-06 S. Portnoy , N. Torrado , J. J. P. Veerman

The aim of this paper is to establish non-asymptotic minimax rates of testing for goodness-of-fit hypotheses in a heteroscedastic setting. More precisely, we deal with sequences $(Y_j)_{j\in J}$ of independent Gaussian random variables,…

Statistics Theory · Mathematics 2010-02-09 Béatrice Laurent , Jean-Michel Loubès , Clément Marteau