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The estimation of risk measures recently gained a lot of attention, partly because of the backtesting issues of expected shortfall related to elicitability. In this work we shed a new and fundamental light on optimal estimation procedures…

Risk Management · Quantitative Finance 2017-08-25 Marcin Pitera , Thorsten Schmidt

Approximate Incremental Value-at-Risk formulae provide an easy-to-use preliminary guideline for risk allocation. Both the cases of risk adding and risk pooling are examined and beta-based formulae achieved. Results highlight how much the…

Statistical Mechanics · Physics 2008-12-10 Dirk Tasche , Luisa Tibiletti

We provide a unified approach to MM-estimation with auxiliary scale for balanced linear models with structured covariance matrices. This approach leads to estimators that are highly robust against outliers and highly efficient for normal…

Statistics Theory · Mathematics 2025-11-10 Hendrik Paul Lopuhaa

Our paper contributes to the theory of conditional risk measures and conditional certainty equivalents. We adopt a random modular approach which proved to be effective in the study of modular convex analysis and conditional risk measures.…

Mathematical Finance · Quantitative Finance 2022-11-10 Giulio Principi , Fabio Maccheroni

The inf-convolution of risk measures is directly related to risk sharing and general equilibrium, and it has attracted considerable attention in mathematical finance and insurance problems. However, the theory is restricted to finite sets…

Risk Management · Quantitative Finance 2022-03-22 Marcelo Brutti Righi , Marlon Ruoso Moresco

For purposes of Value-at-Risk estimation, we consider several multivariate families of heavy-tailed distributions, which can be seen as multidimensional versions of Paretian stable and Student's t distributions allowing different marginals…

Risk Management · Quantitative Finance 2011-12-20 Carlo Marinelli , Stefano d'Addona , Svetlozar T. Rachev

The family of admissible positions in a transaction costs model is a random closed set, which is convex in case of proportional transaction costs. However, the convexity fails, e.g. in case of fixed transaction costs or when only a finite…

Risk Management · Quantitative Finance 2021-01-15 Andreas Haier , Ilya Molchanov

The valuation of over-the-counter derivatives is subject to a series of valuation adjustments known as xVA, which pose additional risks for financial institutions. Associated risk measures, such as the value-at-risk of an underlying…

Computational Finance · Quantitative Finance 2024-05-24 Michael B. Giles , Abdul-Lateef Haji-Ali , Jonathan Spence

The work concerns invariant measures for multivalued McKean-Vlasov stochastic differential equations. First of all, we prove the exponential ergodicity of these equations. Then for a sequence of these equations, when their coefficients…

Probability · Mathematics 2022-12-19 Huijie Qiao

We introduce an estimation method of covariance matrices in a high-dimensional setting, i.e., when the dimension of the matrix, , is larger than the sample size . Specifically, we propose an orthogonally equivariant estimator. The…

Statistics Theory · Mathematics 2020-12-04 Samprit Banerjee , Stefano Monni

Relying on recent advances in statistical estimation of covariance distances based on random matrix theory, this article proposes an improved covariance and precision matrix estimation for a wide family of metrics. The method is shown to…

Machine Learning · Statistics 2021-02-03 Malik Tiomoko , Florent Bouchard , Guillaume Ginholac , Romain Couillet

This study presents new closed-form estimators for the Dirichlet and the Multivariate Gamma distribution families, whose maximum likelihood estimator cannot be explicitly derived. The methodology builds upon the score-adjusted estimators…

Statistics Theory · Mathematics 2023-11-28 Ioannis Oikonomidis , Samis Trevezas

The classical multivariate extreme-value theory concerns the modeling of extremes in a multivariate random sample, suggesting the use of max-stable distributions. In this work, the classical theory is extended to the case where aggregated…

Methodology · Statistics 2020-03-12 Enkelejd Hashorva , Simone A. Padoan , Stefano Rizzelli

In this work, we focus on some conditional extreme risk measures estimation for elliptical random vectors. In a previous paper, we proposed a methodology to approximate extreme quantiles, based on two extremal parameters. We thus propose…

Statistics Theory · Mathematics 2018-07-26 Antoine Usseglio-Carleve

Studies that collect multi-outcome data such as tobacco and alcohol use are becoming increasingly common. In principle, multi-outcomes studies investigate the correlations between outcomes, including, causal links and/or joint…

Methodology · Statistics 2022-11-03 George G. Vega Yon , Mary Jo Pugh , Thomas W. Valente

The aim of this paper is to show a possibility to identify multivariate distribution by means of specially constructed one-dimensional random variable. We give some inequalities which may appear to helpful for a construction of multivariate…

Statistics Theory · Mathematics 2018-08-17 Lev B. Klebanov , Irina V. Volchenkova

Modern technology often generates data with complex structures in which both response and explanatory variables are matrix-valued. Existing methods in the literature are able to tackle matrix-valued predictors but are rather limited for…

Methodology · Statistics 2017-08-01 Shanshan Ding , R. Dennis Cook

Variational inference is a popular method for estimating model parameters and conditional distributions in hierarchical and mixed models, which arise frequently in many settings in the health, social, and biological sciences. Variational…

Methodology · Statistics 2019-01-10 Ted Westling , Tyler H. McCormick

Risk measures such as Expected Shortfall (ES) and Value-at-Risk (VaR) have been prominent in banking regulation and financial risk management. Motivated by practical considerations in the assessment and management of risks, including…

Mathematical Finance · Quantitative Finance 2021-05-05 Ruodu Wang , Johanna F. Ziegel

We introduce two kinds of risk measures with respect to some reference probability measure, which both allow for a certain order structure and domination property. Analyzing their relation to each other leads to the question when a certain…

Risk Management · Quantitative Finance 2022-04-15 Christa Cuchiero , Guido Gazzani , Irene Klein