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We consider regularly varying random vectors. Our goal is to estimate in a non-parametric way some characteristics related to conditioning on an extreme event, like the tail dependence coefficient. We introduce a quasi-spectral…

Methodology · Statistics 2015-02-26 Rafał Kulik , Zhigang Tong

Recently, the concept of tail dependence has been discussed in financial applications related to market or credit risk. The multivariate extreme value theory is a proper tool to measure and model dependence, for example, of large loss…

Applications · Statistics 2011-09-27 Marta Ferreira

This book chapter illustrates how to apply extreme value statistics to financial time series data. Such data often exhibits strong serial dependence, which complicates assessment of tail risks. We discuss the two main approches to tail risk…

Risk Management · Quantitative Finance 2024-09-30 Anna Kiriliouk , Chen Zhou

We consider strictly stationary heavy tailed time series whose finite-dimensional exponent measures are concentrated on axes, and hence their extremal properties cannot be tackled using classical multivariate regular variation that is…

Statistics Theory · Mathematics 2014-10-10 Rafal Kulik , Philippe Soulier

Heavy tailed phenomena are naturally analyzed by extreme value statistics. A crucial step in such an analysis is the estimation of the extreme value index, which describes the tail heaviness of the underlying probability distribution. We…

Statistics Theory · Mathematics 2018-07-18 Hanan Ahmed , John H. J. Einmahl

The extreme values theory presents specific tools for modeling and predicting extreme phenomena. In particular, risk assessment is often analyzed through measures for tail dependence and high values clustering. Despite technological…

Statistics Theory · Mathematics 2020-03-23 Helena Ferreira , Marta Ferreira

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

The estimation of conditional quantiles at extreme tails is of great interest in numerous applications. Various methods that integrate regression analysis with an extrapolation strategy derived from extreme value theory have been proposed…

Methodology · Statistics 2024-11-22 Yiwei Tang , Judy Huixia Wang , Deyuan Li

This paper introduces a novel measure to quantify the directional dependence of extreme events between two variables. The proposed approach is designed to capture asymmetric tail dependence by studying conditional tail expectations of…

Methodology · Statistics 2026-04-06 Matthieu Garcin , Maxime L. D. Nicolas

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

Determining the causes of extreme events is a fundamental question in many scientific fields. An important aspect when modelling multivariate extremes is the tail dependence. In application, the extreme dependence structure may…

Methodology · Statistics 2022-12-21 Juraj Bodik , Linda Mhalla , Valérie Chavez-Demoulin

The relationship between a response variable and its covariates can vary significantly, especially in scenarios where covariates take on extremely high or low values. This paper introduces a max-linear tail regression model specifically…

Methodology · Statistics 2025-02-24 Liujun Chen , Deyuan Li , Zhengjun Zhang

In this paper, we investigate the extreme-value methodology, to propose an improved estimator of the conditional tail expectation ($CTE$) for a loss distribution with a finite mean but infinite variance. The present work introduces a new…

Statistics Theory · Mathematics 2020-02-11 Mohamed Laidi , Abdelaziz Rassoul , Hamid Ould Rouis

The problem of estimating the coefficient of bivariate tail dependence is considered here from the robustness point of view; it combines two apparently contradictory theories of robust statistics and extreme value statistics. The usual…

Applications · Statistics 2014-07-08 Abhik Ghosh

We introduce a novel regression model for the conditional left and right tail of a possibly heavy-tailed response. The proposed model can be used to learn the effect of covariates on an extreme value setting via a Lasso-type specification…

Methodology · Statistics 2021-08-11 Miguel de Carvalho , Soraia Pereira , Paula Pereira , Patrícia de Zea Bermudez

A tail empirical process for heavy-tailed and right-censored data is introduced and its Gaussian approximation is established. In this context, a (weighted) new Hill-type estimator for positive extreme value index is proposed and its…

Statistics Theory · Mathematics 2018-02-06 Brahim Brahimi , Djamel Meraghni , Abdelhakim Necir , Louiza Soltane

In this paper, we discuss the application of extreme value theory in the context of stationary $\beta$-mixing sequences that belong to the Fr\'echet domain of attraction. In particular, we propose a methodology to construct bias-corrected…

Statistics Theory · Mathematics 2017-08-24 Valérie Chavez-Demoulin , Armelle Guillou

Consider two stationary time series with heavy-tailed marginal distributions. We aim to detect whether they have a causal relation, that is, if a change in one causes a change in the other. Usual methods for causal discovery are not well…

Statistics Theory · Mathematics 2023-11-20 Juraj Bodik , Zbyněk Pawlas , Milan Paluš

Extreme events are often multivariate in nature. A compound extreme occurs when a combination of variables jointly produces a significant impact, even if individual components are not necessarily marginally extreme. Compound extremes have…

Methodology · Statistics 2025-09-24 Cathy Yin , Adam M. Sykulski , Almut E. D. Veraart

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
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