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For a risk vector $V$, whose components are shared among agents by some random mechanism, we obtain asymptotic lower and upper bounds for the individual agents' exposure risk and the aggregated risk in the market. Risk is measured by…

Risk Management · Quantitative Finance 2016-04-12 Oliver Kley , Claudia Kluppelberg

We study large deviation probabilities for a sum of dependent random variables from a heavy-tailed factor model, assuming that the components are regularly varying. We identify conditions where both the factor and the idiosyncratic terms…

Probability · Mathematics 2007-12-05 Boualem Djehiche , Jens Svensson

A scan statistic is examined for the purpose of testing the existence of a global peak in a random process with dependent variables of any distribution. The scan statistic tail probability is obtained based on the covariance of the moving…

Computation · Statistics 2013-09-24 Anat Reiner-Benaim

Assessing the probability of occurrence of extreme events is a crucial issue in various fields like finance, insurance, telecommunication or environmental sciences. In a multivariate framework, the tail dependence is characterized by the…

Statistics Theory · Mathematics 2015-05-26 Nicolas Goix , Anne Sabourin , Stéphan Clémençon

In fields such as hydrology and climatology, modelling the entire distribution of positive data is essential, as stakeholders require insights into the full range of values, from low to extreme. Traditional approaches often segment the…

Methodology · Statistics 2025-10-03 Carlo Gaetan , Philippe Naveau

In the world of multivariate extremes, estimation of the dependence structure still presents a challenge and an interesting problem. A procedure for the bivariate case is presented that opens the road to a similar way of handling the…

Statistics Theory · Mathematics 2008-11-14 John H. J. Einmahl , Andrea Krajina , Johan Segers

We study efficient algorithms for linear regression and covariance estimation in the absence of Gaussian assumptions on the underlying distributions of samples, making assumptions instead about only finitely-many moments. We focus on how…

Tail dependence models for distributions attracted to a max-stable law are fitted using observations above a high threshold. To cope with spatial, high-dimensional data, a rank-based M-estimator is proposed relying on bivariate margins…

Methodology · Statistics 2015-01-12 John Einmahl , Anna Kiriliouk , Andrea Krajina , Johan Segers

We introduce a method to estimate simultaneously the tail and the threshold parameters of an extreme value regression model. This standard model finds its use in finance to assess the effect of market variables on extreme loss distributions…

Methodology · Statistics 2023-04-17 Julien Hambuckers , Marie Kratz , Antoine Usseglio-Carleve

One of the central objectives of modern risk management is to find a set of risks where the probability of multiple simultaneous catastrophic events is negligible. That is, risks are taken only when their joint behavior seems sufficiently…

Statistics Theory · Mathematics 2019-04-02 Jaakko Lehtomaa , Sidney Resnick

Risk assessment for rare events is essential for understanding systemic stability in complex systems. As rare events are typically highly correlated, it is important to study heavy-tailed multivariate distributions of the relevant…

Statistical Finance · Quantitative Finance 2025-12-02 Efstratios Manolakis , Anton J. Heckens , Benjamin Köhler , Thomas Guhr

This paper develops a threshold regression model where an unknown relationship between two variables nonparametrically determines the threshold. We allow the observations to be cross-sectionally dependent so that the model can be applied to…

Econometrics · Economics 2021-01-29 Yoonseok Lee , Yulong Wang

The extreme value dependence of regularly varying stationary time series can be described by the spectral tail process. Drees, Segers and Warchol [Extremes 18(3): 369--402, 2015] proposed estimators of the marginal distributions of this…

Statistics Theory · Mathematics 2019-07-23 Holger Drees , Miran Knezevic

Conditional Value-at-Risk (CVaR) is a widely used risk-sensitive objective for learning under rare but high-impact losses, yet its statistical behavior under heavy-tailed data remains poorly understood. Unlike expectation-based risk, CVaR…

Machine Learning · Statistics 2026-02-23 Dinesh Karthik Mulumudi , Piyushi Manupriya , Gholamali Aminian , Anant Raj

In a wide variety of sequential decision making problems, it can be important to estimate the impact of rare events in order to minimize risk exposure. A popular risk measure is the conditional value-at-risk (CVaR), which is commonly…

Machine Learning · Statistics 2020-12-11 Dylan Troop , Frédéric Godin , Jia Yuan Yu

We attempt to bring some modest unity to three subareas of heavy tail analysis and extreme value theory: limit laws for componentwise maxima of iid random variables;hidden regular variation and asymptotic independence;conditioned limit laws…

Probability · Mathematics 2009-09-29 Sidney I. Resnick

The regular variation model for multivariate extremes decomposes the joint distribution of the extremes in polar coordinates in terms of the angles and the norm of the random vector as the product of two independent densities: the angular…

Methodology · Statistics 2025-08-08 Fernández-Durán , J. J. , Gregorio-Domínguez , M. M

Parameter estimation and the variable selection are two pioneer issues in regression analysis. While traditional variable selection methods require prior estimation of the model parameters, the penalized methods simultaneously carry on…

Methodology · Statistics 2021-09-01 Yetkin Tuaç , Olcay Arslan

The r largest order statistics approach is widely used in extreme value analysis because it may use more information from the data than just the block maxima. In practice, the choice of r is critical. If r is too large, bias can occur; if…

Methodology · Statistics 2018-06-13 Brian Bader , Jun Yan , Xuebin Zhang

In risk management, tail risks are of crucial importance. The quality of a tail model, which is determined by data from an unknown distribution, depends critically on the subset of data used to model the tail. Based on a suitably weighted…

Methodology · Statistics 2021-01-19 Ingo Hoffmann , Christoph J. Börner