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This paper measures and compares the tail risks of limit and market orders using Extreme Value Theory. The analysis examines realised tail outcomes using the Dealing 2000-2 electronic broking system based on completed transactions rather…

Statistical Finance · Quantitative Finance 2011-03-30 john cotter , kevin dowd

The non-asymptotic tail bounds of random variables play crucial roles in probability, statistics, and machine learning. Despite much success in developing upper bounds on tail probability in literature, the lower bounds on tail…

Probability · Mathematics 2020-09-08 Anru R. Zhang , Yuchen Zhou

The so-called partition function is a sample moment statistic based on blocks of data and it is often used in the context of multifractal processes. It will be shown that its behaviour is strongly influenced by the tail of the distribution…

Methodology · Statistics 2013-10-02 Danijel Grahovac , Mofei Jia , Nikolai N. Leonenko , Emanuele Taufer

An asymptotic model for extreme behavior of certain Markov chains is the "tail chain". Generally taking the form of a multiplicative random walk, it is useful in deriving extremal characteristics such as point process limits. We place this…

Probability · Mathematics 2011-12-30 Sidney I. Resnick , David Zeber

This paper develops an analytical method of truncating inequality constrained Gaussian distributed variables where the constraints are themselves described by Gaussian distributions. Existing truncation methods either assume hard…

Systems and Control · Computer Science 2016-06-08 Andrew W. Palmer , Andrew J. Hill , Steven J. Scheding

We propose a class of weighted least squares estimators for the tail index of a distribution function with a regularly varying upper tail. Our approach is based on the method developed by \cite{Holan2010} for the Parzen tail index.…

Statistics Theory · Mathematics 2020-03-02 Amenah AL-Najafi , László Viharos

This paper focuses on rare events associated with the tail probabilities of the extremal eigenvalues in the $\beta$-Jacobi ensemble, which plays a critical role in both multivariate statistical analysis and statistical physics. Under the…

Probability · Mathematics 2024-09-26 Yutao Ma , Siyu Wang

We propose a new approach for estimating the parameters of a probability distribution. It consists on combining two new methods of estimation. The first is based on the definition of a new distance measuring the difference between…

Methodology · Statistics 2008-12-30 Ahmed Guellil , Tewfik Kernane

Threshold selection plays a key role for various aspects of statistical inference of rare events. Most classical approaches tackling this problem for heavy-tailed distributions crucially depend on tuning parameters or critical values to be…

Methodology · Statistics 2019-03-07 Laura Fee Schneider , Andrea Krajina , Tatyana Krivobokova

A non trivial problem that arises in several applications is the estimation of the mean of a truncated normal distribution. In this paper, an iterative deterministic scheme for approximating this mean is proposed. It has been inspired from…

Estimating the left tail of quadratic forms in Gaussian random vectors is of major practical importance in many applications. In this paper, we propose an efficient and robust importance sampling estimator that is endowed with the bounded…

Methodology · Statistics 2019-01-29 Chaouki Ben Issaid , Mohamed-Slim Alouini , Raul Tempone

In this paper, we study the asymptotic behaviour of the product tail probability $ \mathbb{P}(\xi_1\cdots\xi_N \geqslant n), $ where $\{\xi_1,\ldots,\xi_N\}$ is a finite collection of independent Poisson random variables with positive…

Probability · Mathematics 2026-04-06 Džiugas Chvoinikov , Jonas Šiaulys

Due to globalization and relaxed market regulation, we have assisted to an increasing of extremal dependence in international markets. As a consequence, several measures of tail dependence have been stated in literature in recent years,…

Statistics Theory · Mathematics 2011-08-10 Helena Ferreira , Marta Ferreira

This paper studies the quantization of heavy-tailed data in some fundamental statistical estimation problems, where the underlying distributions have bounded moments of some order. We propose to truncate and properly dither the data prior…

Statistics Theory · Mathematics 2023-07-27 Junren Chen , Michael K. Ng , Di Wang

In risk analysis, a global fit that appropriately captures the body and the tail of the distribution of losses is essential. Modelling the whole range of the losses using a standard distribution is usually very hard and often impossible due…

Methodology · Statistics 2017-09-19 Tom Reynkens , Roel Verbelen , Jan Beirlant , Katrien Antonio

We introduce a new actuarial tail-shape index, the $\theta$-index, based on a probability equal level relationship between Value at Risk and Expected Shortfall. The index is defined at each tail probability level as the parameter value for…

Risk Management · Quantitative Finance 2026-01-29 Georgios I. Papayiannis , Georgios Psarrakos

Recent advances in extreme value theory have established $\ell$-Pareto processes as the natural limits for extreme events defined in terms of exceedances of a risk functional. Here we provide methods for the practical modelling of data…

Methodology · Statistics 2015-12-21 Emeric Thibaud , Thomas Opitz

We survey some of the recent advances in mean estimation and regression function estimation. In particular, we describe sub-Gaussian mean estimators for possibly heavy-tailed data both in the univariate and multivariate settings. We focus…

Statistics Theory · Mathematics 2019-06-12 Gabor Lugosi , Shahar Mendelson

We present a tail inequality for suprema of empirical processes generated by variables with finite $\psi_\alpha$ norms and apply it to some geometrically ergodic Markov chains to derive similar estimates for empirical processes of such…

Probability · Mathematics 2008-06-08 Radosław Adamczak

We generalize Quasi-Linear Means by restricting to the tail of the risk distribution and show that this can be a useful quantity in risk management since it comprises in its general form the Value at Risk, the Tail Value at Risk and the…

Risk Management · Quantitative Finance 2025-10-22 Nicole Bäuerle , Tomer Shushi
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