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In this paper, we propose an new the CUSUM sequential test (control chart, stopping time) with the observation-adjusted control limits (CUSUM-OAL) for monitoring quickly and adaptively the change in distribution of a sequential…

Applications · Statistics 2024-11-25 F. Tang , D. Han

Power-law probability distributions are widely used to model extreme statistical events in complex systems, with applications to a vast array of natural phenomena ranging from earthquakes to stock market crashes to pandemics. We show that…

Quantum Physics · Physics 2026-04-08 Wai-Keong Mok

The task of estimation of the tails of probability distributions having small samples seems to be still opened and almost unsolvable. The paper tries to make a step in filling this gap. In 2017 Jordanova et al. introduce six new…

Statistics Theory · Mathematics 2018-11-14 Pavlina Jordanova , Monika Peteva

We study the asymptotic behaviour of widely used tests for evaluating and comparing predictive accuracy when forecast errors exhibit heavy tails. In particular, when loss differentials have infinite variance, the Diebold-Mariano test…

Methodology · Statistics 2026-05-20 Jonas F. Frederiksen , Muneya Matsui , Rasmus S. Pedersen

Long-range correlation in financial time series reflects the complex dynamics of the stock markets driven by algorithms and human decisions. Our analysis exploits ultra-high frequency order book data from NASDAQ Nordic over a period of…

Trading and Market Microstructure · Quantitative Finance 2017-11-10 Martin Magris , Jiyeong Kim , Esa Rasanen , Juho Kanniainen

We consider a few quantities that characterize trading on a stock market in a fixed time interval: logarithmic returns, volatility, trading activity (i.e., the number of transactions), and volume traded. We search for the power-law…

Statistical Finance · Quantitative Finance 2016-01-20 Rafal Rak , Stanislaw Drozdz , Jaroslaw Kwapien , Pawel Oswiecimka

The critical brain hypothesis posits that neural circuitry operates near criticality to reap the computational benefits of accessing a wide range of timescales. The theory of critical phenomena generally predicts heavy-tailed (power-law)…

Neurons and Cognition · Quantitative Biology 2025-12-23 Jacob T. Crosser , Braden A. W. Brinkman

In this paper we discuss the problem of the estimation of extreme event occurrence probability for data drawn from some multifractal process. We also study the heavy (power-law) tail behavior of probability density function associated with…

Statistical Mechanics · Physics 2009-11-11 Jean-Francois Muzy , Emmanuel Bacry , Alexey Kozhemyak

In this report, a systematic analysis of hourly wind speed data obtained from three potential wind generation sites (in North Dakota) is analyzed. The power spectra of the data exhibited a power-law decay characteristic of $1/f^{\alpha}$…

Data Analysis, Statistics and Probability · Physics 2007-05-23 Rajesh G. Kavasseri , Radhakrishnan Nagarajan

There are a number of situations in which several signals are simultaneously recorded in complex systems, which exhibit long-term power-law cross-correlations. The multifractal detrended cross-correlation analysis (MF-DCCA) approaches can…

Statistical Finance · Quantitative Finance 2015-03-19 Zhi-Qiang Jiang , Wei-Xing Zhou

Determining the number of factors in high-dimensional factor modeling is essential but challenging, especially when the data are heavy-tailed. In this paper, we introduce a new estimator based on the spectral properties of Spearman sample…

Methodology · Statistics 2024-08-29 Jiaxin Qiu , Zeng Li , Jianfeng Yao

We study high-dimensional signal recovery from non-linear measurements with design vectors having elliptically symmetric distribution. Special attention is devoted to the situation when the unknown signal belongs to a set of low statistical…

Statistics Theory · Mathematics 2016-11-14 Larry Goldstein , Stanislav Minsker , Xiaohan Wei

Distinguishing power-law distributions from other heavy-tailed distributions is challenging, and this task is often further complicated by subsampling effects. In this work, we evaluate the performance of two commonly used methods for…

Data Analysis, Statistics and Probability · Physics 2024-05-09 Silja Sormunen , Lasse Leskelä , Jari Saramäki

This paper introduces a new classification scheme - head/tail breaks - in order to find groupings or hierarchy for data with a heavy-tailed distribution. The heavy-tailed distributions are heavily right skewed, with a minority of large…

Data Analysis, Statistics and Probability · Physics 2013-10-22 Bin Jiang

It has been shown that, if a model displays long-range (power-law) spatial correlations, its equal-time correlation matrix of this model will also have a power law tail in the distribution of its high-lying eigenvalues. The purpose of this…

Statistical Mechanics · Physics 2017-01-26 Soham Biswas , Francois Leyvraz , Paulino Monroy Castillero , Thomas H Seligman

Detrended fluctuation analysis (DFA), suitable for the analysis of nonstationary time series, has confirmed the existence of persistent long-range correlations in healthy heart rate variability data. In this paper, we present the…

Medical Physics · Physics 2009-11-10 J. C. Echeverria , M. S. Woolfson , J. A. Crowe , B. R. Hayes-Gill , G. D. H. Croaker , H. Vyas

In this paper we tackle the problem of estimating the power-law tail exponent of income distributions by using the Hill's estimator. A subsample semi-parametric bootstrap procedure minimising the mean squared error is used to choose the…

Physics and Society · Physics 2009-01-31 F. Clementi , T. Di Matteo , M. Gallegati

Linear measures such as cross-correlation have been used successfully to determine time delays from the given processes. Such an analysis often precedes identifying possible causal relationships between the observed processes. The present…

Quantitative Methods · Quantitative Biology 2015-05-13 Radhakrishnan Nagarajan

We offer a survey of recent results on covariance estimation for heavy-tailed distributions. By unifying ideas scattered in the literature, we propose user-friendly methods that facilitate practical implementation. Specifically, we…

Methodology · Statistics 2019-03-12 Yuan Ke , Stanislav Minsker , Zhao Ren , Qiang Sun , Wen-Xin Zhou

Power laws and distributions with heavy tails are common features of many experimentally studied complex systems, like the distribution of the sizes of earthquakes and solar flares, or the duration of neuronal avalanches in the brain.…

Adaptation and Self-Organizing Systems · Physics 2014-03-05 Dimitrije Markovic , Claudius Gros