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This report was originally written as an industry white paper on Hedge Funds. This paper gives an overview to Hedge Funds, with a focus on risk management issues. We define and explain the general characteristics of Hedge Funds, their main…

General Finance · Quantitative Finance 2009-04-20 Sovan Mitra

Taxonomy construction is not only a fundamental task for semantic analysis of text corpora, but also an important step for applications such as information filtering, recommendation, and Web search. Existing pattern-based methods extract…

Databases · Computer Science 2018-12-27 Chao Zhang , Fangbo Tao , Xiusi Chen , Jiaming Shen , Meng Jiang , Brian Sadler , Michelle Vanni , Jiawei Han

We propose a novel strategy for multivariate extreme value index estimation. In applications such as finance, volatility and risk present in the components of a multivariate time series are often driven by the same underlying factors, such…

Statistics Theory · Mathematics 2020-03-24 Joni Virta , Niko Lietzén , Lauri Viitasaari , Pauliina Ilmonen

It is often the case that risk assessment and prognostics are viewed as related but separate tasks. This chapter describes a risk-based approach to prognostics that seeks to provide a tighter coupling between risk assessment and fault…

Systems and Control · Electrical Eng. & Systems 2025-08-18 John W. Sheppard

This paper considers the problem of isolating a small number of exchange traded funds (ETFs) that suffice to capture the fundamental dimensions of variation in U.S. financial markets. First, the data is fit to a vector-valued Bayesian…

Statistical Finance · Quantitative Finance 2015-12-01 David Puelz , Carlos M. Carvalho , P. Richard Hahn

This paper proposes a framework for categorizing economic policies in a form of a tree taxonomy. The purpose of this approach is to construct an exhaustive and standardized list of actions that a governing authority has access to and can…

General Finance · Quantitative Finance 2025-07-08 Rem Sadykhov , Geoff Goodell , Philip Treleaven

Systematic and multifactor risk models are revisited via methods which were already successfully developed in signal processing and in automatic control. The results, which bypass the usual criticisms on those risk modeling, are illustrated…

Risk Management · Quantitative Finance 2013-12-19 Michel Fliess , Cédric Join

We propose to represent a return model and risk model in a unified manner with deep learning, which is a representative model that can express a nonlinear relationship. Although deep learning performs quite well, it has significant…

Statistical Finance · Quantitative Finance 2022-01-17 Kei Nakagawa , Takumi Uchida , Tomohisa Aoshima

This article presents methods for estimating extreme probabilities, beyond the range of the observations. These methods are model-free and applicable to almost any sample size. They are grounded in order statistics theory and have a wide…

Applications · Statistics 2025-04-03 Joan del Castillo , Pedro Puig

Machine-learning-based entity resolution has been widely studied. However, some entity pairs may be mislabeled by machine learning models and existing studies do not study the risk analysis problem -- predicting and interpreting which…

Databases · Computer Science 2019-12-09 Zhaoqiang Chen , Qun Chen , Boyi Hou , Tianyi Duan , Zhanhuai Li , Guoliang Li

Regression modeling is the workhorse of statistics and there is a vast literature on estimation of the regression function. It is realized in recent years that in regression analysis the ultimate aim may be the estimation of a level set of…

Methodology · Statistics 2022-07-27 Fang Wan , Wei Liu , Frank Bretz

A so called Zipf analysis portofolio management technique is introduced in order to comprehend the risk and returns. Two portofoios are built each from a well known financial index. The portofolio management is based on two approaches: one…

Physics and Society · Physics 2012-10-03 M. Ausloos Ph. Bronlet

This chapter deals with approaches for protein three-dimensional structure prediction, starting out from a single input sequence with unknown struc- ture, the 'query' or 'target' sequence. Both template based and template free modelling…

Biomolecules · Quantitative Biology 2017-12-04 Sanne Abeln , Jaap Heringa , K. Anton Feenstra

The analysis of risk typically involves dividing a random damage-generation process into separate frequency (event-count) and severity (damage-magnitude) components. In the present article, we construct canonical families of mixture…

Methodology · Statistics 2025-11-07 Michael R. Powers , Jiaxin Xu

We introduce a method to estimate simultaneously the tail and the threshold parameters of an extreme value regression model. This standard model finds its use in finance to assess the effect of market variables on extreme loss distributions…

Methodology · Statistics 2023-04-17 Julien Hambuckers , Marie Kratz , Antoine Usseglio-Carleve

This article aims to propose and apply a machine learning method to analyze the direction of returns from Exchange Traded Funds (ETFs) using the historical return data of its components, helping to make investment strategy decisions through…

Computational Finance · Quantitative Finance 2022-06-14 Raphael P. B. Piovezan , Pedro Paulo de Andrade Junior

This paper develops a deep learning-based econometric methodology to determine the causality of the financial time series. This method is applied to the imbalances in daily transactions in individual stocks, as well as the ETFs reported to…

Trading and Market Microstructure · Quantitative Finance 2022-04-11 Peter Lerner

In this article we propose a study of market models starting from a set of axioms, as one does in the case of risk measures. We define a market model simply as a mapping from the set of adapted strategies to the set of random variables…

Mathematical Finance · Quantitative Finance 2015-12-08 Mario Sikic

Investments in cryptocurrencies (CCs) remain risky due to high volatility. Exchange Traded Funds (ETFs) are a suitable tool to diversify risk and to benefit from the growth of the whole CC sector. We construct an ETF on the CRIX, the…

General Finance · Quantitative Finance 2023-03-14 Konstantin Häusler

This paper presents a method for incorporating risk aversion into existing decision tree models used in economic evaluations. The method involves applying a probability weighting function based on rank dependent utility theory to reduced…

Theoretical Economics · Economics 2024-01-24 Jacob Smith