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Related papers: Non-monotone dependence modeling with copulas: an …

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This work examines how the dependence structures between energy futures asset prices differ in two periods identified before and after the 2008 global financial crisis. These two periods were characterised by a difference in the number of…

Applications · Statistics 2023-03-31 Clara Grazian , Alex McInnes

We propose a dependence-aware predictive modeling framework for multivariate risks stemmed from an insurance contract with bundling features - an important type of policy increasingly offered by major insurance companies. The bundling…

Methodology · Statistics 2023-10-17 Peng Shi , Zifeng Zhao

In this paper we provide evidence that financial option markets for equity indices give rise to non-trivial dependency structures between its constituents. Thus, if the individual constituent distributions of an equity index are inferred…

Pricing of Securities · Quantitative Finance 2009-09-22 Alex Langnau

A new method for constructing absolutely continuous two--dimensional copulas by differential equations is presented. The copulas are symmetric with respect to reflection in the opposite diagonal. The support of the copula density may be…

Probability · Mathematics 2019-05-24 Oscar Björnham , Niklas Brännström , Leif Persson

To handle the ubiquitous problem of "dependence learning," copulas are quickly becoming a pervasive tool across a wide range of data-driven disciplines encompassing neuroscience, finance, econometrics, genomics, social science, machine…

Methodology · Statistics 2019-12-12 Subhadeep Mukhopadhyay , Emanuel Parzen

Conditional copulas are useful tools for modeling the dependence between multiple response variables that may vary with a given set of predictor variables. Conditional dependence measures such as conditional Kendall's tau and Spearman's rho…

Methodology · Statistics 2023-11-07 Lu Lu , Sujit Ghosh

In this article, we study tests of independence for data with arbitrary distributions in the non-serial case, i.e., for independent and identically distributed random vectors, as well as in the serial case, i.e., for time series. These…

Methodology · Statistics 2023-06-13 Bouchra R. Nasri , Bruno N. Remillard

Regression analysis is one of the most popularly used statistical technique which only measures the direct effect of independent variables on dependent variable. Path analysis looks for both direct and indirect effects of independent…

Methodology · Statistics 2024-06-26 Alam Ali , Ashok Kumar Pathak , Mohd Arshad , Ayyub Sheikhi

Copula-based methods provide a flexible approach to build missing data imputation models of multivariate data of mixed types. However, the choice of copula function is an open question. We consider a Bayesian nonparametric approach by using…

Methodology · Statistics 2019-10-15 Jiali Wang , Anton Westveld , Bronwyn Loong , Alan Welsh

Couplings in complex real-world systems are often nonlinear and scale-dependent. In many cases, it is crucial to consider a multitude of interlinked variables and the strengths of their correlations to adequately fathom the dynamics of a…

Data Analysis, Statistics and Probability · Physics 2022-10-26 Tobias Braun , K. Hauke Kraemer , Norbert Marwan

Asymmetry is an inherent property of bivariate associations and therefore must not be ignored. The currently applicable dependence measures mask the potential asymmetry of the underlying dependence structure by implicitly assuming that…

Applications · Statistics 2019-02-14 Robert R. Junker , Florian Griessenberger , Wolfgang Trutschnig

Zero-inflated continuous data ubiquitously appear in many fields, in which lots of exactly zero-valued data are observed while others distribute continuously. Due to the mixed structure of discreteness and continuity in its distribution,…

Methodology · Statistics 2024-10-28 Keita Hamamoto

We construct new multivariate copulas on the basis of a generalized infinite partition-of-unity approach. This approach allows - in contrast to finite partition-of-unity copulas - for tail-dependence as well as for asymmetry. A possibility…

Risk Management · Quantitative Finance 2020-12-17 Dietmar Pfeifer , Hervé Awoumlac Tsatedem , Andreas Mändle , Côme Girschig

In this paper, we propose a regular vine copula based methodology for the fusion of correlated decisions. Regular vine copula is an extremely flexible and powerful graphical model to characterize complex dependence among multiple…

Signal Processing · Electrical Eng. & Systems 2019-03-27 Shan Zhang , Lakshmi Narasimhan Theagarajan , Sora Choi , Pramod K. Varshney

In some areas of knowledge there are data representing directions restricted to a specific range of values. Consequently, it is useful to have models for describing variables defined in subsets of the k-dimensional unit sphere. This need…

Methodology · Statistics 2025-07-17 Joel Montesinos-Vazquez , Gabriel Núñez-Antonio

In this paper we propose a copula contagion mixture model for correlated default times. The model includes the well known factor, copula, and contagion models as its special cases. The key advantage of such a model is that we can study the…

Pricing of Securities · Quantitative Finance 2010-10-21 Harry Zheng

In many practical scenarios, including finance, environmental sciences, system reliability, etc., it is often of interest to study the various notion of negative dependence among the observed variables. A new bivariate copula is proposed…

Methodology · Statistics 2023-07-18 Shyamal Ghosh , Prajamitra Bhuyan , Maxim Finkelstein

We introduce a family of copulas which are locally piecewise uniform in the interior of the unit cube of any given dimension. Within that family, the simultaneous control of tail dependencies of all projections to faces of the cube is…

Computational Finance · Quantitative Finance 2009-08-11 Christoph Hummel

This paper addresses the problem of quantification and propagation of uncertainties associated with dependence modeling when data for characterizing probability models are limited. Practically, the system inputs are often assumed to be…

Computation · Statistics 2020-04-14 Jiaxin Zhang , Michael D. Shields

The most widely used method for finding relationships between several quantities is multiple regression. This however is restricted to a single dependent variable. We present a more general method which allows models to be constructed with…

Statistics Theory · Mathematics 2011-09-06 Chris Tofallis