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Fluctuations of global additive quantities, like total energy or magnetization for instance, can in principle be described by statistics of sums of (possibly correlated) random variables. Yet, it turns out that extreme values (the largest…

Statistical Mechanics · Physics 2008-11-18 Maxime Clusel , Eric Bertin

This paper measures and compares the tail risks of limit and market orders using Extreme Value Theory. The analysis examines realised tail outcomes using the Dealing 2000-2 electronic broking system based on completed transactions rather…

Statistical Finance · Quantitative Finance 2011-03-30 john cotter , kevin dowd

A recent development in extreme value modeling uses the geometry of the dataset to perform inference on the multivariate tail. A key quantity in this inference is the gauge function, whose values define this geometry. Methodology proposed…

Methodology · Statistics 2025-07-23 Ryan Campbell , Jennifer Wadsworth

The existence of large and extreme claims of a non-life insurance portfolio influences the ability of (re)insurers to estimate the reserve. The excess over-threshold method provides a way to capture and model the typical behaviour of…

Applications · Statistics 2019-11-07 Yinzhi Wang , Ingrid Hobæk Haff , Arne Huseby

We introduce a trimmed version of the Hill estimator for the index of a heavy-tailed distribution, which is robust to perturbations in the extreme order statistics. In the ideal Pareto setting, the estimator is essentially finite-sample…

Methodology · Statistics 2018-08-24 Shrijita Bhattacharya , Michael Kallitsis , Stilian Stoev

The extremes of a stationary time series typically occur in clusters. A primary measure for this phenomenon is the extremal index, representing the reciprocal of the expected cluster size. Both a disjoint and a sliding blocks estimator for…

Statistics Theory · Mathematics 2017-07-14 Betina Berghaus , Axel Bücher

This brief paper summarize the chances offered by the Peak-Over-Threshold method, related with analysis of extremes. Identification of appropriate Value at Risk can be solved by fitting data with a Generalized Pareto Distribution. Also an…

Applications · Statistics 2015-09-04 Gianluca Rosso

The most popular approach in extreme value statistics is the modelling of threshold exceedances using the asymptotically motivated generalised Pareto distribution. This approach involves the selection of a high threshold above which the…

Methodology · Statistics 2014-05-27 Ioannis Papastathopoulos , Jonathan A. Tawn

We consider a multivariate heavy-tailed stochastic volatility model and analyze the large-sample behavior of its sample covariance matrix. We study the limiting behavior of its entries in the infinite-variance case and derive results for…

Probability · Mathematics 2016-05-10 Anja Janßen , Thomas Mikosch , Mohsen Rezapour , Xiaolei Xie

The statistical distribution of the largest value drawn from a sample of a given size has only three possible shapes: it is either a Weibull, a Fr\'echet or a Gumbel extreme value distributions. I describe in this short review how to relate…

Statistical Mechanics · Physics 2020-09-22 Alex Hansen

This paper deals with optimally-robust parameter estimation in generalized Pareto distributions (GPDs). These arise naturally in many situations where one is interested in the behavior of extreme events as motivated by the…

Statistical Finance · Quantitative Finance 2015-03-17 Peter Ruckdeschel , Nataliya Horbenko

Extremal dependence between international stock markets is of particular interest in today's global financial landscape. However, previous studies have shown this dependence is not necessarily stationary over time. We concern ourselves with…

Statistical Finance · Quantitative Finance 2017-09-06 Daniela Castro Camilo , Miguel de Carvalho , Jennifer Wadsworth

The risk of occurrence of atypical phenomena is a cross-cutting concern in several areas, such as engineering, climatology, finance, actuarial, among others. Extreme value theory is the natural tool to approach this theme. Many of these…

Statistics Theory · Mathematics 2020-07-09 Marta Ferreira , Ana Paula Martins , Helena Ferreira

Heavy-tailed distributions are infamously difficult to estimate because their moments tend to infinity as the shape of the tail decay increases. Nevertheless, this study shows the utilization of a modified group of moments for estimating a…

Methodology · Statistics 2025-07-31 Amenah AL-Najafi , Ugur Tirnakli , Kenric P. Nelson

Maximal inequalities refer to bounds on expected values of the supremum of averages of random variables over a collection. They play a crucial role in the study of non-parametric and high-dimensional estimators, and especially in the study…

Probability · Mathematics 2025-04-28 Supratik Basu , Arun K Kuchibhotla

This paper studies the trade-off between two different kinds of pure exploration: breadth versus depth. The most biased coin problem asks how many total coin flips are required to identify a "heavy" coin from an infinite bag containing both…

Machine Learning · Computer Science 2016-03-29 Kevin Jamieson , Daniel Haas , Ben Recht

Mixture models are one of the most widely used statistical tools when dealing with data from heterogeneous populations. This paper considers the long-standing debate over finite mixture and infinite mixtures and brings the two modelling…

Methodology · Statistics 2019-04-23 Raffaele Argiento , Maria De Iorio

Extremal quantile regression, i.e. quantile regression applied to the tails of the conditional distribution, counts with an increasing number of economic and financial applications such as value-at-risk, production frontiers, determinants…

Methodology · Statistics 2022-01-24 Victor Chernozhukov , Iván Fernández-Val , Tetsuya Kaji

The goal of this paper is to demonstrate the general modeling and practical simulation of random equations with mixture model parameter random variables. Random equations, understood as stationary (non-dynamical) equations with parameters…

Computation · Statistics 2025-07-31 Wolfgang Hoegele

We study the consistency and weak convergence of the conditional tail function and conditional Hill estimators under broad dependence assumptions for a heavy-tailed response sequence and a covariate sequence. Consistency is established…

Statistics Theory · Mathematics 2026-02-04 Martin Bladt , Laurits Glargaard , Theodor Henningsen
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