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We study tail risk dynamics in high-frequency financial markets and their connection with trading activity and market uncertainty. We introduce a dynamic extreme value regression model accommodating both stationary and local unit-root…

Econometrics · Economics 2023-01-05 Julien Hambuckers , Li Sun , Luca Trapin

This paper presents a wp-style calculus for obtaining expectations on the outcomes of (mutually) recursive probabilistic programs. We provide several proof rules to derive one-- and two--sided bounds for such expectations, and show the…

Logic in Computer Science · Computer Science 2016-03-10 Federico Olmedo , Benjamin Lucien Kaminski , Joost-Pieter Katoen , Christoph Matheja

We consider random walks, say $W_n=(M_0, M_1,\dots, M_n)$, of length $n$ starting at 0 and based on the martingale sequence $M_k$ with differences $X_m=M_m-M_{m-1}$. Assuming that the differences are bounded, $|X_m|\leq 1$, we solve the…

Probability · Mathematics 2013-05-30 Dainius Dzindzalieta

In this paper, we study estimates on tail probabilities $\mathbb{P}(S_r \ge t)$ of several classes of subordinators under mild assumptions on the tail of its L\'evy measure. As an application of that result, we obtain two-sided estimates…

Probability · Mathematics 2019-05-02 Soobin Cho , Panki Kim

A random vector $X$ with representation $X=\sum_{j\geq0}A_jZ_j$ is considered. Here, $(Z_j)$ is a sequence of independent and identically distributed random vectors and $(A_j)$ is a sequence of random matrices, `predictable' with respect to…

Probability · Mathematics 2009-09-29 Henrik Hult , Gennady Samorodnitsky

In this paper, we develop approximate dynamic programming methods for stochastic systems modeled as Markov Decision Processes, given both soft performance criteria and hard constraints in a class of probabilistic temporal logic called…

Optimization and Control · Mathematics 2018-10-08 Lening Li , Jie Fu

A computer code can simulate a system's propagation of variation from random inputs to output measures of quality. Our aim here is to estimate a critical output tail probability or quantile without a large Monte Carlo experiment. Instead,…

Machine Learning · Statistics 2019-08-16 Hao Chen , William J. Welch

In this paper we are concerned with a sample of asymptotically independent risks. Tail asymptotic probabilities for linear combinations of randomly weighted order statistics are approximated under various assumptions, where the individual…

Probability · Mathematics 2014-06-24 Alexandru V. Asimit , Enkelejd Hashorva , Dominik Kortschak

We consider random walks with finite second moment which drifts to $-\infty$ and have heavy tail. We focus on the events when the minimum and the final value of this walk belong to some compact set. We first specify the associated…

Probability · Mathematics 2013-12-12 Vincent Bansaye , Vladimir Vatutin

We use the martingale-theoretic approach of game-theoretic probability to incorporate imprecision into the study of randomness. In particular, we define several notions of randomness associated with interval, rather than precise,…

Probability · Mathematics 2021-06-24 Gert de Cooman , Jasper De Bock

In this paper, I present a completely new type of upper and lower bounds on the right-tail probabilities of continuous random variables with unbounded support and with semi-bounded support from the left. The presented upper and lower…

Probability · Mathematics 2023-11-28 Nikola Zlatanov

Deciding termination is a fundamental problem in the analysis of probabilistic imperative programs. We consider the qualitative and quantitative probabilistic termination problems for an imperative programming model with discrete…

Logic in Computer Science · Computer Science 2024-07-25 Rupak Majumdar , V. R. Sathiyanarayana

The notion of program sensitivity (aka Lipschitz continuity) specifies that changes in the program input result in proportional changes to the program output. For probabilistic programs the notion is naturally extended to expected…

Programming Languages · Computer Science 2019-10-29 Peixin Wang , Hongfei Fu , Krishnendu Chatterjee , Yuxin Deng , Ming Xu

Probabilistic forecasts comprehensively describe the uncertainty in the unknown future outcome, making them essential for decision making and risk management. While several methods have been introduced to evaluate probabilistic forecasts,…

Methodology · Statistics 2025-05-23 Sam Allen , Jonathan Koh , Johan Segers , Johanna Ziegel

We present an approximated maximum likelihood method for the multifractal random walk processes of [E. Bacry et al., Phys. Rev. E 64, 026103 (2001)]. The likelihood is computed using a Laplace approximation and a truncation in the…

Data Analysis, Statistics and Probability · Physics 2015-06-03 Ola Løvsletten , Martin Rypdal

In previous work Majda and McLaughlin computed explicit expressions for the $2N$th moments of a passive scalar advected by a linear shear flow in the form of an integral over ${\bf R}^N$. In this paper we first compute the asymptotics of…

Fluid Dynamics · Physics 2007-05-23 J. C. Bronski , R. M. McLaughlin

Gaps (or spacings) between consecutive eigenvalues are a central topic in random matrix theory. The goal of this paper is to study the tail distribution of these gaps in various random matrix models. We give the first repulsion bound for…

Probability · Mathematics 2015-05-05 Hoi Nguyen , Terence Tao , Van Vu

In this paper non-asymptotic moment estimates are derived for tail of distribution for discrete time polynomial martingale by means of martingale differences as a rule in the terms of unconditional and unconditional relative moments and…

Probability · Mathematics 2014-10-06 E. Ostrovsky , L. Sirota

Let $\{X_1, X_2, ... \}$ be a sequence of dependent heavy-tailed random variables with distributions $F_1, F_2,...$ on $(-\infty,\infty)$, and let $\tau$ be a nonnegative integer-valued random variable independent of the sequence $\{X_k, k…

Probability · Mathematics 2013-02-28 Kam Chuen Yuen , Chuancun Yin

We investigate the use of optimization to compute bounds for extremal performance measures. This approach takes a non-parametric viewpoint that aims to alleviate the issue of model misspecification possibly encountered by conventional…

Methodology · Statistics 2017-11-03 Clementine Mottet , Henry Lam
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