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This paper introduces a novel approach to financial risk assessment by incorporating topological data analysis (TDA), specifically cohomology groups, into the evaluation of equities portfolios. The study aims to go beyond traditional risk…

Risk Management · Quantitative Finance 2023-10-30 Amit Kumar Jha

We consider a one dimensional ballistic random walk evolving in a parametric independent and identically distributed random environment. We study the asymptotic properties of the maximum likelihood estimator of the parameter based on a…

Statistics Theory · Mathematics 2014-04-29 Mikael Falconnet , Dasha Loukianova , Catherine Matias

In this article, by using composite asymmetric least squares (CALS) and empirical likelihood, we propose a two-step procedure to estimate the conditional value at risk (VaR) and conditional expected shortfall (ES) for the GARCH series.…

Statistics Theory · Mathematics 2018-07-05 Sheng Wu , Yi Zhang , Jun Zhao , Liming Shen

We derive a nonparametric test for constant beta over a fixed time interval from high-frequency observations of a bivariate \Ito semimartingale. Beta is defined as the ratio of the spot continuous covariation between an asset and a risk…

Statistics Theory · Mathematics 2015-02-20 Markus Reiß , Viktor Todorov , George Tauchen

In this paper we derive the tail asymptotics of the product of two dependent Weibull-type risks, which is of interest in various statistical and applied probability problems. Our results extend some recent findings of Schlueter and Fischer…

Probability · Mathematics 2014-12-12 E. Hashorva , Z. Weng

This paper examines the asymptotic inference for AR(1) models with a possible structural break in the AR parameter $\beta $ near the unity at an unknown time $k_{0}$. Consider the model $y_{t}=\beta_{1}y_{t-1}I\{t\leq k_{0}\}+\beta…

Statistics Theory · Mathematics 2013-06-07 Pang Tianxiao , Zhang Danna , Chong Terence Tai-Leung

We consider the adaptive Lasso estimator with componentwise tuning in the framework of a low-dimensional linear regression model. In our setting, at least one of the components is penalized at the rate of consistent model selection and…

Statistics Theory · Mathematics 2025-11-11 Nicolai Amann , Ulrike Schneider

We consider the asymptotic behaviour of the marginal maximum likelihood empirical Bayes posterior distribution in general setting. First we characterize the set where the maximum marginal likelihood estimator is located with high…

Statistics Theory · Mathematics 2016-04-05 Judith Rousseau , Botond Szabo

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

We consider testing for presence of a signal in Gaussian white noise with intensity 1/sqrt(n), when the alternatives are given by smoothness ellipsoids with an L2-ball of (squared) radius rho removed. It is known that, for a fixed Sobolev…

Statistics Theory · Mathematics 2020-08-11 Pengsheng Ji , Michael Nussbaum

Due to their heterogeneity, insurance risks can be properly described as a mixture of different fixed models, where the weights assigned to each model may be estimated empirically from a sample of available data. If a risk measure is…

Risk Management · Quantitative Finance 2018-02-12 Valeria Bignozzi , Claudio Macci , Lea Petrella

The performance analysis of random vector channels, particularly multiple-input-multiple-output (MIMO) channels, has largely been established in the asymptotic regime of large channel dimensions, due to the analytical intractability of…

Information Theory · Computer Science 2015-01-05 Yuxin Chen , Andrea J. Goldsmith , Yonina C. Eldar

We study concentration properties of vertex degrees of $n$-dimensional Erdos-R\'enyi random graphs with the edge probability $\rho/n$ by means of high moments of these random variables in the limit when $n$ and $\rho$ tend to infinity.…

Probability · Mathematics 2020-07-23 O. Khorunzhiy

In statistical inference, confidence set procedures are typically evaluated based on their validity and width properties. Even when procedures achieve rate-optimal widths, confidence sets can still be excessively wide in practice due to…

Statistics Theory · Mathematics 2025-03-20 Kenta Takatsu

Expanding on techniques of concentration of measure, we develop a quantitative framework for modeling liquidity risk using convex risk measures. The fundamental objects of study are curves of the form $(\rho(\lambda X))_{\lambda \ge 0}$,…

Risk Management · Quantitative Finance 2015-10-28 Daniel Lacker

A bivariate random vector can exhibit either asymptotic independence or dependence between the largest values of its components. When used as a statistical model for risk assessment in fields such as finance, insurance or meteorology, it is…

Probability · Mathematics 2019-04-29 Sebastian Engelke , Thomas Opitz , Jennifer Wadsworth

Consider a random walk whose (light-tailed) increments have positive mean. Lower and upper bounds are provided for the expected maximal value of the random walk until it experiences a given drawdown d. These bounds, related to the Calmar…

Probability · Mathematics 2008-07-23 Isaac Meilijson

We obtain asymptotic approximations for the probability density function of the product of two correlated normal random variables with non-zero means and arbitrary variances. As a consequence, we deduce asymptotic approximations for the…

Probability · Mathematics 2024-10-22 Robert E. Gaunt , Zixin Ye

This paper investigates the impact of distributional uncertainty on key risk measures under the partial knowledge of underlying distributions characterized by their first two moments and shape information (specifically symmetry and/or…

Risk Management · Quantitative Finance 2025-12-16 Mengshuo Zhao , Narayanaswamy Balakrishnan , Chuancun Yin , Hui Shao

In this paper, we establish the precise asymptotic behaviors of the tail probability and the transition density of a large class of isotropic L\'evy processes when the scaling order is between 0 and 2 including 2. We also obtain the precise…

Probability · Mathematics 2017-08-30 Panki Kim , Ante Mimica