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We offer a new perspective on risk aggregation with FGM copulas. Along the way, we discover new results and revisit existing ones, providing simpler formulas than one can find in the existing literature. This paper builds on two novel…

Statistics Theory · Mathematics 2022-08-01 Christopher Blier-Wong , Hélène Cossette , Etienne Marceau

Copulas are a powerful tool to model dependence between the components of a random vector. One well-known class of copulas when working in two dimensions is the Farlie-GumbelMorgenstern (FGM) copula since their simple analytic shape enables…

Statistics Theory · Mathematics 2022-05-24 Christopher Blier-Wong , Hélène Cossette , Etienne Marceau

We propose an approach to construct a new family of generalized Farlie-Gumbel-Morgenstern (GFGM) copulas that naturally scales to high dimensions. A GFGM copula can model moderate positive and negative dependence, cover different types of…

Statistics Theory · Mathematics 2022-09-29 Christopher Blier-Wong , Hélène Cossette , Sébastien Legros , Etienne Marceau

Building on the one-to-one relationship between generalized FGM copulas and multivariate Bernoulli distributions, we prove that the class of multivariate distributions with generalized FGM copulas is a convex polytope. Therefore, we find…

Mathematical Finance · Quantitative Finance 2024-10-10 Hélène Cossette , Etienne Marceau , Alessandro Mutti , Patrizia Semeraro

In this paper, we obtain general representations for the joint distributions and copulas of arbitrary dependent random variables absolutely continuous with respect to the product of given one-dimensional marginal distributions. The…

Statistics Theory · Mathematics 2016-08-16 Victor H. de la Peña , Rustam Ibragimov , Shaturgun Sharakhmetov

The study of sums of possibly associated Bernoulli random variables has been hampered by an asymmetry between positive correlation and negative correlation. The Conway-Maxwell Binomial (COMB) distribution and its multivariate extension, the…

Methodology · Statistics 2014-04-08 Joseph B. Kadane

We study copula-based collective risk models when the dependence structure is defined by a Farlie-Gumbel-Morgenstern (FGM) copula. By leveraging a one-to-one correspondence between the class of FGM copulas and multivariate symmetric…

Applications · Statistics 2024-09-04 Christopher Blier-Wong , Hélène Cossette , Etienne Marceau

We develop improved rearrangement algorithms to find the dependence structure that minimizes a convex function of the sum of dependent variables with given margins. We propose a new multivariate dependence measure, which can assess the…

Computation · Statistics 2016-07-14 Carole Bernard , Don McLeish

Motivated by recently investigated results on dependence measures and robust risk models, this paper provides an overview of dependence properties of many well-known bivariate copula families, where the focus is on the Schur order for…

Statistics Theory · Mathematics 2024-04-09 Jonathan Ansari , Marcus Rockel

We provide a set of copulas that can be interpreted as having the negative extreme dependence. This set of copulas is interesting because it coincides with countermonotonic copula for a bivariate case, and more importantly, is shown to be…

Risk Management · Quantitative Finance 2015-03-12 Jae Youn Ahn

We provide a geometrical characterization of extremal negative dependence as a convex polytope in the simplex of multidimensional Bernoulli distributions, and we prove that it is an antichain that satisfies some minimality conditions with…

Probability · Mathematics 2025-05-08 Hélène Cossette , Etienne Marceau , Alessandro Mutti , Patrizia Semeraro

By applying Sklar's theorem to the Multivariate Bernoulli Distribution (MBD), this paper proposes a framework to decouple marginal distributions from the dependence structure, clarifying interactions among binary variables. Explicit…

Methodology · Statistics 2025-09-16 Arturo Erdely

We propose a new bivariate symmetric copula with positive and negative dependence properties. The main features of the proposed copula are its simple mathematical structure, wider dependence range compared to FGM copula and its…

Statistics Theory · Mathematics 2024-08-29 Swaroop Georgy Zachariah , Mohd. Arshad , Ashok Kumar Pathak

We show that all multivariate Extreme Value distributions, which are the possible weak limits of the $K$ largest order statistics of iid sequences, have the same copula, the so called K-extremal copula. This copula is described through…

Probability · Mathematics 2015-03-13 Glauco Valle , Marco Aurelio Sanfins

In this paper, we consider the multivariate Bernoulli distribution as a model to estimate the structure of graphs with binary nodes. This distribution is discussed in the framework of the exponential family, and its statistical properties…

Applications · Statistics 2013-11-13 Bin Dai , Shilin Ding , Grace Wahba

We discuss a general method to construct correlated binomial distributions by imposing several consistent relations on the joint probability function. We obtain self-consistency relations for the conditional correlations and conditional…

Data Analysis, Statistics and Probability · Physics 2007-05-23 M. Hisakado , K. Kitsukawa , S. Mori

We explore the class of exchangeable Bernoulli distributions building on their geometrical structure. Exchangeable Bernoulli probability mass functions are points in a convex polytope and we have found analytical expressions for their…

Statistics Theory · Mathematics 2021-01-20 Roberto Fontana , Patrizia Semeraro

The Bernoulli sieve is a random allocation scheme obtained by placing independent points with the uniform [0,1] law into the intervals made up by successive positions of a multiplicative random walk with factors taking values in the…

Probability · Mathematics 2013-04-17 Alexander Iksanov , Alexander Marynych , Vladimir Vatutin

This paper provides a characterization of all possible dependency structures between two stochastically ordered random variables. The answer is given in terms of copulas that are compatible with the stochastic order and the marginal…

Probability · Mathematics 2019-12-16 Sebastian Arnold , Ilya Molchanov , Johanna F. Ziegel

Looking at bivariate copulas from the perspective of conditional distributions and considering weak convergence of almost all conditional distributions yields the notion of weak conditional convergence. At first glance, this notion of…

Statistics Theory · Mathematics 2020-10-12 Thimo M. Kasper , Sebastian Fuchs , Wolfgang Trutschnig
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