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As an alternative to the well-known methods of "chaining" and "bracketing" that have been developed in the study of random fields, a new method, which is based on a stochastic maximal inequality derived by using the Taylor expansion, is…

Probability · Mathematics 2020-08-03 Yoichi Nishiyama

We bring in this short report (counter -) examples on order to show a difference between tails behavior and Grand Lebesgue Spaces norms for some classes of random variables.

Probability · Mathematics 2017-11-15 E. Ostrovsky , L. Sirota

To consider a high-dimensional random process, we propose a notion about stochastic tensor-valued random process (TRP). In this work, we first attempt to apply a generic chaining method to derive tail bounds for all p-th moments of the…

Probability · Mathematics 2023-02-02 Shih-Yu Chang

Statistical analysis of extremes can be used to predict the probability of future extreme events, such as large rainfalls or devastating windstorms. The quality of these forecasts can be measured through scoring rules. Locally scale…

Methodology · Statistics 2024-02-22 Helga Kristin Olafsdottir , Holger Rootzén , David Bolin

Extreme events and the heavy tail distributions driven by them are ubiquitous in various scientific, engineering and financial research. They are typically associated with stochastic instability caused by hidden unresolved processes.…

Probability · Mathematics 2019-05-22 Andrew J. Majda , Xin T. Tong

We study the asymptotic behaviour of widely used tests for evaluating and comparing predictive accuracy when forecast errors exhibit heavy tails. In particular, when loss differentials have infinite variance, the Diebold-Mariano test…

Methodology · Statistics 2026-05-20 Jonas F. Frederiksen , Muneya Matsui , Rasmus S. Pedersen

The statistical theory of extremes is extended to observations that are non-stationary and not independent. The non-stationarity over time and space is controlled via the scedasis (tail scale) in the marginal distributions. Spatial…

Statistics Theory · Mathematics 2020-03-10 John H. J. Einmahl , Ana Ferreira , Laurens de Haan , Claudia Neves , Chen Zhou

Expectile, as the minimizer of an asymmetric quadratic loss function, is a coherent risk measure and is helpful to use more information about the distribution of the considered risk. In this paper, we propose a new risk measure by replacing…

Methodology · Statistics 2023-10-31 Qian Xiong , Zuoxiang Peng

This paper deals with tail diversification in financial time series through the concept of statistical independence by way of differential entropy and mutual information. By using moments as contrast functions to isolate the tails of the…

Portfolio Management · Quantitative Finance 2023-02-28 Jan Rosenzweig

Due to globalization and relaxed market regulation, we have assisted to an increasing of extremal dependence in international markets. As a consequence, several measures of tail dependence have been stated in literature in recent years,…

Statistics Theory · Mathematics 2011-08-10 Helena Ferreira , Marta Ferreira

This article describes mathematical methods for estimating the top-tail of the wealth distribution and therefrom the share of total wealth that the richest $p$ percent hold, which is an intuitive measure of inequality. As the data base for…

Applications · Statistics 2018-07-11 Christoph Dalitz

Models for extreme values are generally derived from limit results, which are meant to be good enough approximations when applied to finite samples. Depending on the speed of convergence of the process underlying the data, these…

Statistics Theory · Mathematics 2019-02-20 Thomas Lugrin , Anthony C. Davison , Jonathan A. Tawn

Correcting for skewness can result in more accurate tail probability approximations in the central limit theorem for sums of independent random variables. In this paper, we extend the theory to sums of local statistics of independent random…

Probability · Mathematics 2019-04-05 Xiao Fang , Li Luo , Qi-Man Shao

In a number of applications, particularly in financial and actuarial mathematics, it is of interest to characterize the tail distribution of a random variable $V$ satisfying the distributional equation $V\stackrel{\mathcal{D}}{=}f(V)$,…

Probability · Mathematics 2014-07-04 Jeffrey F. Collamore , Guoqing Diao , Anand N. Vidyashankar

In extreme value inference it is a fundamental problem how the target value is required to be extreme by the extreme value theory. In iid settings this study both theoretically and numerically compares tail estimators, which are based on…

Statistics Theory · Mathematics 2024-09-04 Taku Moriyama

Motivated by a bidimensional discrete-time risk model in insurance, we study the second-order asymptotics for two kinds of tail probabilities of the stochastic discounted value of aggregate net losses including two business lines. These are…

Probability · Mathematics 2025-01-22 Bingzhen Geng , Yang Liu , Shijie Wang

We intend to derive the moment and exponential tail estimates for the so-called bivariate or more generally multivariate functional operations, not necessary to be linear or even multilinear. We will show also the strong or at last weak…

Functional Analysis · Mathematics 2018-05-08 E. Ostrovsky , L. Sirota

We present sharp tail asymptotics for the density and the distribution function of linear combinations of correlated log-normal random variables, that is, exponentials of components of a correlated Gaussian vector. The asymptotic behavior…

Probability · Mathematics 2016-01-07 Archil Gulisashvili , Peter Tankov

We obtain first decay rates of probabilities of tails of multivariate polynomials built on independent random variables with heavy tails. Then we derive stable limit theorems for nonconventional sums of the form $\sum_{Nt\geq n\geq…

Probability · Mathematics 2015-09-08 Yuri Kifer , S. R. S. Varadhan

Expectile bears some interesting properties in comparison to the industry wide expected shortfall in terms of assessment of tail risk. We study the relationship between expectile and expected shortfall using duality results and the link to…

Risk Management · Quantitative Finance 2020-06-04 Samuel Drapeau , Mekonnen Tadese