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We study submodularity for law-invariant functionals, with particular attention to convex risk measures. Expected losses are modular, and certainty equivalents are submodular exactly when the loss function is convex. Law-invariant coherent…

Risk Management · Quantitative Finance 2026-04-07 Ruodu Wang , Jingcheng Yu

We design and mathematically analyze sampling-based algorithms for regularized loss minimization problems that are implementable in popular computational models for large data, in which the access to the data is restricted in some way. Our…

Machine Learning · Computer Science 2019-06-04 Ryan R. Curtin , Sungjin Im , Ben Moseley , Kirk Pruhs , Alireza Samadian

Linear inverse problems are ubiquitous. Often the measurements do not follow a Gaussian distribution. Additionally, a model matrix with a large condition number can complicate the problem further by making it ill-posed. In this case, the…

It is well known that Expected Shortfall (also called Average Value-at-Risk) is a convex risk measure, i. e. Expected Shortfall of a convex linear combination of arbitrary risk positions is not greater than a convex linear combination with…

Risk Management · Quantitative Finance 2019-10-03 Mikhail Tselishchev

Empirical Risk Minimization (ERM) algorithms are widely used in a variety of estimation and prediction tasks in signal-processing and machine learning applications. Despite their popularity, a theory that explains their statistical…

Machine Learning · Statistics 2020-07-07 Hossein Taheri , Ramtin Pedarsani , Christos Thrampoulidis

Regularization is widely used in statistics and machine learning to prevent overfitting and gear solution towards prior information. In general, a regularized estimation problem minimizes the sum of a loss function and a penalty term. The…

Computation · Statistics 2012-01-18 Hua Zhou , Yichao Wu

Capital allocation is a procedure for quantifying the contribution of each source of risk to aggregated risk. The gradient allocation rule, also known as the Euler principle, is a prevalent rule of capital allocation under which the…

Risk Management · Quantitative Finance 2024-06-28 Takaaki Koike , Cathy W. S. Chen , Edward M. H. Lin

The Lambda Value-at-Risk (Lambda-VaR) is a generalization of the Value-at-Risk (VaR), which has been actively studied in quantitative finance. Over the past two decades, the Expected Shortfall (ES) has become one of the most important risk…

Mathematical Finance · Quantitative Finance 2026-01-08 Fabio Bellini , Muqiao Huang , Qiuqi Wang , Ruodu Wang

Historical (Stressed-) Value-at-Risk ((S)VAR), and Expected Shortfall (ES), are widely used risk measures in regulatory capital and Initial Margin, i.e. funding, computations. However, whilst the definitions of VAR and ES are unambiguous,…

Risk Management · Quantitative Finance 2014-05-30 Chris Kenyon , Andrew Green

Analysis of non-asymptotic estimation error and structured statistical recovery based on norm regularized regression, such as Lasso, needs to consider four aspects: the norm, the loss function, the design matrix, and the noise model. This…

Machine Learning · Statistics 2015-12-01 Arindam Banerjee , Sheng Chen , Farideh Fazayeli , Vidyashankar Sivakumar

We study the sensitivity to estimation error of portfolios optimized under various risk measures, including variance, absolute deviation, expected shortfall and maximal loss. We introduce a measure of portfolio sensitivity and test the…

Physics and Society · Physics 2008-12-02 Imre Kondor , Szilard Pafka , Gabor Nagy

We analyze the effect of quantizing weights and activations of neural networks on their loss and derive a simple regularization scheme that improves robustness against post-training quantization. By training quantization-ready networks, our…

Machine Learning · Computer Science 2020-02-19 Milad Alizadeh , Arash Behboodi , Mart van Baalen , Christos Louizos , Tijmen Blankevoort , Max Welling

The issue related to the quantification of the tail risk of cryptocurrencies is considered in this paper. The statistical methods used in the study are those concerning recent developments in Extreme Value Theory (EVT) for weakly dependent…

Risk Management · Quantitative Finance 2023-11-30 Andrea Teruzzi

Expected shortfall is defined as the average over the tail below (or above) a certain quantile of a probability distribution. Expected shortfall regression provides powerful tools for learning the relationship between a response variable…

Methodology · Statistics 2025-01-03 Shushu Zhang , Xuming He , Kean Ming Tan , Wen-Xin Zhou

We consider the statistical inverse problem to recover $f$ from noisy measurements $Y = Tf + \sigma \xi$ where $\xi$ is Gaussian white noise and $T$ a compact operator between Hilbert spaces. Considering general reconstruction methods of…

Numerical Analysis · Mathematics 2026-05-10 Housen Li , Frank Werner

Entropic Outlier Sparsification (EOS) is proposed as a robust computational strategy for the detection of data anomalies in a broad class of learning methods, including the unsupervised problems (like detection of non-Gaussian outliers in…

Methodology · Statistics 2022-06-08 Illia Horenko

We consider a commonly studied supervised classification of a synthetic dataset whose labels are generated by feeding a one-layer neural network with random iid inputs. We study the generalization performances of standard classifiers in the…

Machine Learning · Statistics 2021-02-18 Benjamin Aubin , Florent Krzakala , Yue M. Lu , Lenka Zdeborová

Ordinary least square (OLS), maximum likelihood (ML) and robust methods are the widely used methods to estimate the parameters of a linear regression model. It is well known that these methods perform well under some distributional…

Other Statistics · Statistics 2018-01-29 Şenay Özdemir , Olcay Arslan

To comply with increasingly stringent international standards in risk management and regulation, several approaches have been developed in the literature for forecasting tail-risk measures such as Value-at-Risk (VaR) and Expected Shortfall…

Risk Management · Quantitative Finance 2026-03-02 Alessandra Amendola , Vincenzo Candila , Antonio Naimoli , Giuseppe Storti

Our primary aim is to find an estimate of the expected shortfall in various situations: (1) Nonparametric situation, when the probability distribution of the incurred loss is unknown, only satisfying some general conditions. Then, following…

Methodology · Statistics 2022-12-26 Jana Jurečková , Jan Kalina , Jan Večeř