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Default risk calculus plays a crucial role in portfolio optimization when the risky asset is under threat of bankruptcy. However, traditional stochastic control techniques are not applicable in this scenario, and additional assumptions are…

Portfolio Management · Quantitative Finance 2023-05-10 José A. Salmerón , Giulia Di Nunno , Bernardo D'Auria

Functional data analysis is a fast evolving branch of statistics. Estimation procedures for the popular functional linear model either suffer from lack of robustness or are computationally burdensome. To address these shortcomings, a…

Methodology · Statistics 2021-08-27 Ioannis Kalogridis , Stefan Van Aelst

We consider the problem of robustly predicting as well as the best linear combination of $d$ given functions in least squares regression, and variants of this problem including constraints on the parameters of the linear combination. For…

Statistics Theory · Mathematics 2012-02-24 Jean-Yves Audibert , Olivier Catoni

The so-called pinball loss for estimating conditional quantiles is a well-known tool in both statistics and machine learning. So far, however, only little work has been done to quantify the efficiency of this tool for nonparametric…

Statistics Theory · Mathematics 2011-02-11 Ingo Steinwart , Andreas Christmann

Let $X$ be a random vector with distribution $P_{\theta}$ where $\theta$ is an unknown parameter. When estimating $\theta$ by some estimator $\varphi(X)$ under a loss function $L(\theta,\varphi)$, classical decision theory advocates that…

Methodology · Statistics 2012-03-23 Dominique Fourdrinier , Martin T. Wells

We consider assortment optimization over a continuous spectrum of products represented by the unit interval, where the seller's problem consists of determining the optimal subset of products to offer to potential customers. To describe the…

Machine Learning · Statistics 2021-04-15 Yannik Peeters , Arnoud V. den Boer , Michel Mandjes

Accounting for model uncertainty in risk management and option pricing leads to infinite dimensional optimization problems which are both analytically and numerically intractable. In this article we study when this hurdle can be overcome…

Risk Management · Quantitative Finance 2020-01-16 Daniel Bartl , Samuel Drapeau , Ludovic Tangpi

We propose a new estimator for the high-dimensional linear regression model with observation error in the design where the number of coefficients is potentially larger than the sample size. The main novelty of our procedure is that the…

Methodology · Statistics 2019-09-09 Alexandre Belloni , Abhishek Kaul , Mathieu Rosenbaum

We consider the representation of the value of an optimal stopping problem of a linear diffusion as an expected supremum of a known function. We establish an explicit integral representation of this function by utilizing the explicitly…

Probability · Mathematics 2015-05-08 Luis H. R. Alvarez E. , Pekka Matomäki

Many modern computational approaches to classical problems in quantitative finance are formulated as empirical loss minimization (ERM), allowing direct applications of classical results from statistical machine learning. These methods,…

Machine Learning · Statistics 2022-09-27 A. Max Reppen , H. Mete Soner

The expectile can be considered as a generalization of quantile. While expected shortfall is a quantile based risk measure, we study its counterpart -- the expectile based expected shortfall -- where expectile takes the place of quantile.…

Risk Management · Quantitative Finance 2019-11-11 Samuel Drapeau , Mekonnen Tadese

In this study we analyze linear mixed-integer programming problems, in which the distribution of the cost vector is only observable through a finite training data set. In contrast to the related studies, we assume that the number of random…

Optimization and Control · Mathematics 2022-05-20 Sergey S. Ketkov , Andrei S. Shilov

Motivated by the Basel 3 regulations, recent studies have considered joint forecasts of Value-at-Risk and Expected Shortfall. A large family of scoring functions can be used to evaluate forecast performance in this context. However, little…

Risk Management · Quantitative Finance 2017-05-15 Johanna F. Ziegel , Fabian Krüger , Alexander Jordan , Fernando Fasciati

We consider an original problem that arises from the issue of security analysis of a power system and that we name optimal discovery with probabilistic expert advice. We address it with an algorithm based on the optimistic paradigm and on…

Machine Learning · Computer Science 2013-04-02 Sebastien Bubeck , Damien Ernst , Aurelien Garivier

Parameter estimation via M- and Z-estimation is equally powerful in semiparametric models for one-dimensional functionals due to a one-to-one relation between corresponding loss and identification functions via integration and…

Statistics Theory · Mathematics 2022-09-07 Timo Dimitriadis , Tobias Fissler , Johanna Ziegel

Measuring the contribution of a bank or an insurance company to overall systemic risk is a key concern, particularly in the aftermath of the 2007--2009 financial crisis and the 2020 downturn. In this paper, we derive worst-case and…

Risk Management · Quantitative Finance 2025-11-18 Jinghui Chen , Edward Furman , X. Sheldon Lin

We introduce a consistent estimator of the extreme value index under random truncation based on a single sample fraction of top observations from truncated and truncation data. We establish the asymptotic normality of the proposed estimator…

Statistics Theory · Mathematics 2015-03-02 S. Benchaira , D. Meraghni , A. Necir

Accurate information processing is crucial both in technology and in nature. To achieve it, any information processing system needs an initial supply of resources away from thermal equilibrium. Here we establish a fundamental limit on the…

Quantum Physics · Physics 2022-12-14 Giulio Chiribella , Fei Meng , Renato Renner , Man-Hong Yung

Quantile estimation in deconvolution problems is studied comprehensively. In particular, the more realistic setup of unknown error distributions is covered. Our plug-in method is based on a deconvolution density estimator and is minimax…

Statistics Theory · Mathematics 2016-01-18 Itai Dattner , Markus Reiß , Mathias Trabs

This article introduces an iterative distributed computing estimator for the multinomial logistic regression model with large choice sets. Compared to the maximum likelihood estimator, the proposed iterative distributed estimator achieves…

Econometrics · Economics 2024-12-03 Yanqin Fan , Yigit Okar , Xuetao Shi