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Drifts of asset returns are notoriously difficult to model accurately and, yet, trading strategies obtained from portfolio optimization are very sensitive to them. To mitigate this well-known phenomenon we study robust growth-optimization…

Mathematical Finance · Quantitative Finance 2026-01-01 Balint Binkert , David Itkin , Paul Mangers Bastian , Josef Teichmann

In this paper we present some new limit theorems for power variations of stationary increment L\'{e}vy driven moving average processes. Recently, such asymptotic results have been investigated in [Ann. Probab. 45(6B) (2017), 4477--4528,…

Probability · Mathematics 2018-10-25 Mathias Mørck Ljungdahl , Mark Podolskij

We aim to analyze the behaviour of a finite-time stochastic system, whose model is not available, in the context of more rare and harmful outcomes. Standard estimators are not effective in making predictions about such outcomes due to their…

Methodology · Statistics 2022-07-29 Evan Arsenault , Yuheng Wang , Margaret P. Chapman

A blocks method is used to define clusters of extreme values in stationary time series. The cluster starts at the first large value in the block and ends at the last one. The block cluster measure (the point measure at clusters) encodes…

Statistics Theory · Mathematics 2023-09-01 Zaoli Chen , Rafal Kulik

We derive some key extremal features for $k$th order Markov chains that can be used to understand how the process moves between an extreme state and the body of the process. The chains are studied given that there is an exceedance of a…

Statistics Theory · Mathematics 2023-01-27 Ioannis Papastathopoulos , Adrian Casey , Jonathan A. Tawn

The behavior of extreme observations is well-understood for time series or spatial data, but little is known if the data generating process is a structural causal model (SCM). We study the behavior of extremes in this model class, both for…

Methodology · Statistics 2025-03-11 Sebastian Engelke , Nicola Gnecco , Frank Röttger

This article proposes a generalized notion of extreme multivariate dependence between two random vectors which relies on the extremality of the cross-covariance matrix between these two vectors. Using a partial ordering on the…

Econometrics · Economics 2021-02-10 Damien Bosc , Alfred Galichon

We introduce the notion of multiple extremal integrals as an extension of single extremal integrals, which have played important roles in extreme value theory. The multiple extremal integrals are formulated in terms of a product-form random…

Probability · Mathematics 2026-02-03 Shuyang Bai , Jiemiao Chen

Accurately identifying the extremal dependence structure in multivariate heavy-tailed data is a fundamental yet challenging task, particularly in financial applications. Following a recently proposed bootstrap-based testing procedure, we…

Statistics Theory · Mathematics 2025-06-06 Qian Hui , Sidney I. Resnick , Tiandong Wang

We show that extremal dynamics is very well modelled by the "Linear Fractional Stable Motion" (LFSM), a stochastic process entirely defined by two exponents that take into account spatio-temporal correlations in the distribution of active…

Disordered Systems and Neural Networks · Physics 2009-10-31 S. Krishnamurthy , A. Tanguy , P. Abry , S. Roux

We study the statistics of the maximum and minimum of a set of $N$ random variables whose dynamical and statistical properties fall within the scope of infinite ergodic theory. These non-stationary yet recurrent systems are described, in…

Statistical Mechanics · Physics 2026-03-09 Talia Baravi , Eli Barkai

Multistable L\'evy motions are extensions of L\'evy motions where the stability index is allowed to vary in time. Several constructions of these processes have been introduced recently, based on Poisson and Ferguson-Klass-LePage series…

Probability · Mathematics 2015-03-24 Xiequan Fan , Jacques Lévy Véhel

This paper concerns applications of variational analysis to some local aspects of behavioral science modeling by developing an effective variational rationality approach to these and related issues. Our main attention is paid to local…

Optimization and Control · Mathematics 2018-01-08 Boris Mordukhovich , Antoine Soubeyran

Understanding the spatial extent of extreme precipitation is necessary for determining flood risk and adequately designing infrastructure (e.g., stormwater pipes) to withstand such hazards. While environmental phenomena typically exhibit…

Applications · Statistics 2020-03-25 Gregory P. Bopp , Benjamin A. Shaby , Raphaël Huser

We derive exact asymptotics of $$\mathbb{P}\left(\sup_{\mathbf{t}\in {\mathcal{A}}}X(\mathbf{t})>u\right),~ \text{as}~ u\to\infty,$$ for a centered Gaussian field $X(\mathbf{t}),~ \mathbf{t}\in \mathcal{A}\subset\mathbb{R}^n$, $n>1$ with…

Probability · Mathematics 2021-11-17 Long Bai , Krzysztof Debicki , Peng Liu

We introduce the notions of scaling transition and distributional long-range dependence for stationary random fields $Y$ on $\mathbb {Z}^2$ whose normalized partial sums on rectangles with sides growing at rates $O(n)$ and $O(n^{\gamma})$…

Statistics Theory · Mathematics 2016-06-24 Donata Puplinskaitė , Donatas Surgailis

In extreme value statistics for stationary sequences, blocks estimators are usually constructed by using disjoint blocks because exceedances over high thresholds of different blocks can be assumed asymptotically independent. In this paper…

Statistics Theory · Mathematics 2008-12-23 Christian Y. Robert , Johan Segers , Christopher A. T. Ferro

In this note we consider non-stationary cluster point processes and we derive their conditional intensity, i.e. the intensity of the process given the locations of one or more events of the process. We then provide some approximations of…

Statistics Theory · Mathematics 2021-12-02 Edith Gabriel , Joël Chadoeuf

Modeling heterogeneity on heavy-tailed distributions under a regression framework is challenging, and classical statistical methodologies usually place conditions on the distribution models to facilitate the learning procedure. However,…

Methodology · Statistics 2024-10-29 Jiaxi Wang , Yanxi Hou , Xingchi Li , Tiandong Wang

In this paper, we consider a stochastic system described by a differential equation admitting a spatially varying random coefficient. The differential equation has been employed to model various static physics systems such as elastic…

Probability · Mathematics 2013-09-18 Jingchen Liu , Xiang Zhou