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Copulas are a fundamental tool for modelling multivariate dependencies in data, forming the method of choice in diverse fields and applications. However, the adoption of existing models for multimodal and high-dimensional dependencies is…

Machine Learning · Statistics 2026-05-20 David Huk , Theodoros Damoulas

This paper shows that the CoVaR,$\Delta$-CoVaR,CoES,$\Delta$-CoES and MES systemic risk measures can be represented in terms of the univariate risk measure evaluated at a quantile determined by the copula. The result is applied to derive…

Risk Management · Quantitative Finance 2023-04-27 Aleksy Leeuwenkamp

We propose a dependence-aware predictive modeling framework for multivariate risks stemmed from an insurance contract with bundling features - an important type of policy increasingly offered by major insurance companies. The bundling…

Methodology · Statistics 2023-10-17 Peng Shi , Zifeng Zhao

In this paper, we revisit the notion of partial copula, originally introduced to test conditional independence, highlighting its capability to represent the dependence between two random variables after removing their dependence with a…

Methodology · Statistics 2026-05-26 Vinícius Litvinoff Justus , Felipe Fontana Vieira

Being the limits of copulas of componentwise maxima in independent random samples, extreme-value copulas can be considered to provide appropriate models for the dependence structure between rare events. Extreme-value copulas not only arise…

Statistics Theory · Mathematics 2009-12-07 Gordon Gudendorf , Johan Segers

Factor models are a parsimonious way to explain the dependence of variables using several latent variables. In Gaussian 1-factor and structural factor models (such as bi-factor, oblique factor) and their factor copula counterparts, factor…

Methodology · Statistics 2022-05-31 Xinyao Fan , Harry Joe

Regular vine distributions which constitute a flexible class of multivariate dependence models are discussed. Since multivariate copulae constructed through pair-copula decompositions were introduced to the statistical community, interest…

Methodology · Statistics 2012-11-26 Jeffrey Dissmann , Eike Christian Brechmann , Claudia Czado , Dorota Kurowicka

We propose a Bayesian copula-based framework to quantify clinically interpretable joint tail risks from paired continuous biomarkers. After converting each biomarker margin to rank-based pseudo-observations, we model dependence using…

Methodology · Statistics 2026-03-10 Agnideep Aich , Md. Monzur Murshed , Sameera Hewage , Ashit Baran Aich

Prior to the financial crisis mortgage securitization models increased in sophistication as did products built to insure against losses. Layers of complexity formed upon a foundation that could not support it and as the foundation crumbled…

General Finance · Quantitative Finance 2017-09-14 Christopher J. Rook

The study of dependence between random variables is the core of theoretical and applied statistics. Static and dynamic copula models are useful for describing the dependence structure, which is fully encrypted in the copula probability…

Methodology · Statistics 2018-03-20 Dominque Guégan , Matteo Iacopini

We model systemic risk using a common factor that accounts for market-wide shocks and a tail dependence factor that accounts for linkages among extreme stock returns. Specifically, our theoretical model allows for firm-specific impacts of…

Risk Management · Quantitative Finance 2022-02-07 Wan-Chien Chiu , Juan Ignacio Peña , Chih-Wei Wang

We propose a new bivariate symmetric copula with positive and negative dependence properties. The main features of the proposed copula are its simple mathematical structure, wider dependence range compared to FGM copula and its…

Statistics Theory · Mathematics 2024-08-29 Swaroop Georgy Zachariah , Mohd. Arshad , Ashok Kumar Pathak

There are relatively few works dealing with conformal prediction for multi-task learning issues, and this is particularly true for multi-target regression. This paper focuses on the problem of providing valid (i.e., frequency calibrated)…

Machine Learning · Computer Science 2021-01-29 Soundouss Messoudi , Sébastien Destercke , Sylvain Rousseau

The replacement of indicator functions by integrated beta kernels in the definition of the empirical stable tail dependence function is shown to produce a smoothed version of the latter estimator with the same asymptotic distribution but…

Methodology · Statistics 2017-09-13 Anna Kiriliouk , Johan Segers , Laleh Tafakori

We introduce novel information-theoretic measures termed the multivariate cumulative copula fractional inaccuracy measure and the multivariate survival copula fractional inaccuracy measure, constructed respectively from multivariate copulas…

Statistics Theory · Mathematics 2025-06-25 Aman Pandey , Chanchal Kundu

We propose a Gaussian-copula-based framework that learns deal-level dependence directly from observed joint success frequencies across founder, geography, and market attributes. Holding marginal deal success probabilities fixed, deal-level…

Portfolio Management · Quantitative Finance 2026-04-28 Yunqi Liang , Hasan Ugur Koyluoglu , Fuat Alican , Yigit Ihlamur

We follow a long path for Credit Derivatives and Collateralized Debt Obligations (CDOs) in particular, from the introduction of the Gaussian copula model and the related implied correlations to the introduction of arbitrage-free dynamic…

Pricing of Securities · Quantitative Finance 2010-02-17 Damiano Brigo , Andrea Pallavicini , Roberto Torresetti

In this article, a copula-based method for mixed regression models is proposed, where the conditional distribution of the response variable, given covariates, is modelled by a parametric family of continuous or discrete distributions, and…

Methodology · Statistics 2025-01-13 Pavel Krupskii , Bouchra R Nasri , Bruno N Remillard

Parametric copula families have been known to flexibly capture various dependence patterns, e.g., either positive or negative dependence in either the lower or upper tails of bivariate distributions. In this paper, our objective is to…

Methodology · Statistics 2025-02-11 Ruyi Pan , Luis E. Nieto-Barajas , Radu Craiu

We tackle the problem of multi-task learning with copula process. Multivariable prediction in spatial and spatial-temporal processes such as natural resource estimation and pollution monitoring have been typically addressed using techniques…

Machine Learning · Computer Science 2014-06-03 Markus Schneider , Fabio Ramos