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This book chapter illustrates how to apply extreme value statistics to financial time series data. Such data often exhibits strong serial dependence, which complicates assessment of tail risks. We discuss the two main approches to tail risk…

Risk Management · Quantitative Finance 2024-09-30 Anna Kiriliouk , Chen Zhou

In many applied fields, the prediction of more severe events than those already recorded is crucial for safeguarding against potential future calamities. What-if analyses, which evaluate hypothetical scenarios up to the worst-case event,…

Methodology · Statistics 2025-04-08 Simone A. Padoan , Stefano Rizzelli

In a number of applications, particularly in financial and actuarial mathematics, it is of interest to characterize the tail distribution of a random variable $V$ satisfying the distributional equation $V\stackrel{\mathcal{D}}{=}f(V)$,…

Probability · Mathematics 2014-07-04 Jeffrey F. Collamore , Guoqing Diao , Anand N. Vidyashankar

This paper proposes a scoring-rule-based method for ranking predictive distributions in the Fr\'echet domain that is able to distinguish between different tail indices. The approach is built on normalized order statistics and exploits…

Methodology · Statistics 2026-03-26 Martin Bladt , Christoffer Øhlenschlæger

In this paper, we propose a reduced-bias estimator of the EVI for Pareto-type tails (heavy-tailed) distributions. This is derived using the weighted least squares method. It is shown that the estimator is unbiased, consistent and…

Methodology · Statistics 2022-04-12 E. Ocran , R. Minkah , K. Doku-Amponsah

We consider the task of heavy-tailed statistical estimation given streaming $p$-dimensional samples. This could also be viewed as stochastic optimization under heavy-tailed distributions, with an additional $O(p)$ space complexity…

Machine Learning · Computer Science 2022-02-28 Che-Ping Tsai , Adarsh Prasad , Sivaraman Balakrishnan , Pradeep Ravikumar

Models for extreme values are generally derived from limit results, which are meant to be good enough approximations when applied to finite samples. Depending on the speed of convergence of the process underlying the data, these…

Statistics Theory · Mathematics 2019-02-20 Thomas Lugrin , Anthony C. Davison , Jonathan A. Tawn

Identifying the generating mechanism of a network is challenging as, more often than not, only snapshots are available, but not the full evolution. One candidate for the generating mechanism is preferential attachment which, in its simplest…

Methodology · Statistics 2025-10-07 Thomas Boughen , Clement Lee , Vianey Palacios Ramirez

Taylor's law, also known as fluctuation scaling in physics and the power-law variance function in statistics, is an empirical pattern widely observed across fields including ecology, physics, finance, and epidemiology. It states that the…

Statistics Theory · Mathematics 2025-10-13 Pok Him Cheng , Joel E. Cohen , Hok Kan Ling , Sheung Chi Phillip Yam

Motivated by the prominence of Conditional Value-at-Risk (CVaR) as a measure for tail risk in settings affected by uncertainty, we develop a new formula for approximating CVaR based optimization objectives and their gradients from limited…

Methodology · Statistics 2020-08-25 Anand Deo , Karthyek Murthy

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

Heavy-tailed networks are often characterized in the literature by their degree distribution's similarity to a power law. However, many heavy-tailed networks in real life do not have power-law degree distributions, and in many applications…

Physics and Society · Physics 2021-07-07 Scott A. Hill

We examine the performance of six estimators of the power-law cross-correlations -- the detrended cross-correlation analysis, the detrending moving-average cross-correlation analysis, the height cross-correlation analysis, the averaged…

Statistical Finance · Quantitative Finance 2018-10-30 Ladislav Kristoufek

The estimation of the Extreme Value Index (EVI) is fundamental in extreme value analysis but suffers from high variance due to reliance on only a few extreme observations. We propose a control variates based transfer learning approach in a…

Methodology · Statistics 2025-11-20 Louison Bocquet-Nouaille , Jérôme Morio , Benjamin Bobbia

Regarding the analysis of Web communication, social and complex networks the fast finding of most influential nodes in a network graph constitutes an important research problem. We use two indices of the influence of those nodes, namely,…

Statistics Theory · Mathematics 2017-04-06 Natalia Markovich

Heavy-tailed metrics are common and often critical to product evaluation in the online world. While we may have samples large enough for Central Limit Theorem to kick in, experimentation is challenging due to the wide confidence interval of…

Applications · Statistics 2019-05-23 Jason , Wang , Pauline Burke

Consider a random sample in the max-domain of attraction of a multivariate extreme value distribution such that the dependence structure of the attractor belongs to a parametric model. A new estimator for the unknown parameter is defined as…

Statistics Theory · Mathematics 2012-10-05 John H. J. Einmahl , Andrea Krajina , Johan Segers

Quantile regression is an important tool for estimation of conditional quantiles of a response Y given a vector of covariates X. It can be used to measure the effect of covariates not only in the center of a distribution, but also in the…

Statistics Theory · Mathematics 2017-10-03 Victor Chernozhukov

There are many ways of measuring and modeling tail-dependence in random vectors: from the general framework of multivariate regular variation and the flexible class of max-stable vectors down to simple and concise summary measures like the…

Probability · Mathematics 2022-12-05 Anja Janßen , Sebastian Neblung , Stilian Stoev

We propose a distance supervised relation extraction approach for long-tailed, imbalanced data which is prevalent in real-world settings. Here, the challenge is to learn accurate "few-shot" models for classes existing at the tail of the…

Information Retrieval · Computer Science 2023-01-26 Ningyu Zhang , Shumin Deng , Zhanlin Sun , Guanying Wang , Xi Chen , Wei Zhang , Huajun Chen
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