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This paper explores the application of Machine Learning techniques for pricing high-dimensional options within the framework of the Uncertain Volatility Model (UVM). The UVM is a robust framework that accounts for the inherent…

Computational Finance · Quantitative Finance 2025-06-06 Ludovic Goudenege , Andrea Molent , Antonino Zanette

Capturing the extremal behaviour of data often requires bespoke marginal and dependence models which are grounded in rigorous asymptotic theory, and hence provide reliable extrapolation into the upper tails of the data-generating…

Most of the existing classification methods are aimed at minimization of empirical risk (through some simple point-based error measured with loss function) with added regularization. We propose to approach this problem in a more information…

Machine Learning · Computer Science 2015-01-22 Wojciech Marian Czarnecki , Jacek Tabor

Extreme value theory for chaotic dynamical systems is a rapidly expanding area of research. Given a system and a real function (observable) defined on its phase space, extreme value theory studies the limit probabilistic laws obeyed by…

Dynamical Systems · Mathematics 2015-05-28 Mark P. Holland , Renato Vitolo , Pau Rabassa , Alef E. Sterk , Henk W. Broer

Neural networks are able to approximate any continuous function on a compact set. However, it is not obvious how to quantify the error of the neural network, i.e., the remaining bias between the function and the neural network. Here, we…

Machine Learning · Statistics 2025-11-04 Gero Junike , Marco Oesting

In extreme values theory, for a sufficiently large block size, the maxima distribution is approximated by the generalized extreme value (GEV) distribution. The GEV distribution is a family of continuous probability distributions, which has…

Methodology · Statistics 2021-09-28 Cira E. G. Otiniano , Bianca Sousa , Roberto Vila , Marcelo Bourguignon

Observed accidents have been the main resource for road safety analysis over the past decades. Although such reliance seems quite straightforward, the rare nature of these events has made safety difficult to assess, especially for new and…

Applications · Statistics 2019-11-22 Joana Cavadas , Carlos Lima Azevedo , Haneen Farah , Ana Ferreira

Recent years, transfer learning has attracted much attention in the community of machine learning. In this paper, we mainly focus on the tasks of parameter transfer under the framework of extreme learning machine (ELM). Unlike the existing…

Machine Learning · Computer Science 2018-10-24 Chao Chen , Boyuan Jiang , Xinyu Jin

This paper presents an innovative approach to Extreme Value Analysis (EVA) by introducing the Extreme Value Dynamic Benchmarking Method (EVDBM). EVDBM integrates extreme value theory to detect extreme events and is coupled with the novel…

One of the main goal of extreme value analysis is to estimate the probability of rare events given a sample from an unknown distribution. The upper tail behavior of this distribution is described by the extreme value index. We present a new…

Probability · Mathematics 2007-05-23 Laurent Gardes , Stephane Girard

Heckman selection model is perhaps the most popular econometric model in the analysis of data with sample selection. The analyses of this model are based on the normality assumption for the error terms, however, in some applications, the…

Methodology · Statistics 2020-06-16 Victor H. Lachos Davila , Marcos O. Prates , Dipak K. Dey

The choice of optimal event variables is crucial for achieving the maximal sensitivity of experimental analyses. Over time, physicists have derived suitable kinematic variables for many typical event topologies in collider physics. Here we…

High Energy Physics - Phenomenology · Physics 2021-05-24 Doojin Kim , Kyoungchul Kong , Konstantin T. Matchev , Myeonghun Park , Prasanth Shyamsundar

Meta learning has attracted much attention recently in machine learning community. Contrary to conventional machine learning aiming to learn inherent prediction rules to predict labels for new query data, meta learning aims to learn the…

Machine Learning · Computer Science 2023-07-04 Jun Shu , Deyu Meng , Zongben Xu

For many machine learning algorithms, predictive performance is critically affected by the hyperparameter values used to train them. However, tuning these hyperparameters can come at a high computational cost, especially on larger datasets,…

Multivariate extreme-value analysis is concerned with the extremes in a multivariate random sample, that is, points of which at least some components have exceptionally large values. Mathematical theory suggests the use of max-stable models…

Probability · Mathematics 2012-04-03 Johan Segers

We introduce a novel approach to options trading strategies using a highly scalable and data-driven machine learning algorithm. In contrast to traditional approaches that often require specifications of underlying market dynamics or…

Portfolio Management · Quantitative Finance 2024-11-22 Wee Ling Tan , Stephen Roberts , Stefan Zohren

This paper aims to establish a framework for extreme learning machines (ELMs) on general hypercomplex algebras. Hypercomplex neural networks are machine learning models that feature higher-dimension numbers as parameters, inputs, and…

Machine Learning · Computer Science 2022-05-27 Guilherme Vieira , Marcos Eduardo Valle

Attaining ultra-reliable communication (URC) in fifth-generation (5G) and beyond networks requires deriving statistics of channel in ultra-reliable region by modeling the extreme events. Extreme value theory (EVT) has been previously…

Information Theory · Computer Science 2024-01-12 Niloofar Mehrnia , Sinem Coleri

Analysis of the rare and extreme values through statistical modeling is an important issue in economical crises, climate forecasting, and risk management of financial portfolios. Extreme value theory provides the probability models needed…

Methodology · Statistics 2017-02-15 Ali Reza Fotouhi

Extreme value analysis is an essential methodology in the study of rare and extreme events, which hold significant interest in various fields, particularly in the context of environmental sciences. Models that employ the exceedances of…

Methodology · Statistics 2025-07-16 Lorenzo Dell'Oro , Carlo Gaetan
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