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Risk measures for random vectors have been considered in multi-asset markets with transaction costs and financial networks in the literature. While the theory of set-valued risk measures provide an axiomatic framework for assigning to a…

Risk Management · Quantitative Finance 2024-07-25 Çağın Ararat , Zachary Feinstein

Expected Shortfall (ES), also known as superquantile or Conditional Value-at-Risk, has been recognized as an important measure in risk analysis and stochastic optimization, and is also finding applications beyond these areas. In finance, it…

Methodology · Statistics 2022-12-13 Xuming He , Kean Ming Tan , Wen-Xin Zhou

We consider estimation of parameters defined as linear functionals of solutions to linear inverse problems. Any such parameter admits a doubly robust representation that depends on the solution to a dual linear inverse problem, where the…

We propose a novel family of test statistics to detect the presence of changepoints in a sequence of dependent, possibly multivariate, functional-valued observations. Our approach allows to test for a very general class of changepoints,…

Methodology · Statistics 2023-10-10 B. Cooper Boniece , Lajos Horváth , Lorenzo Trapani

Expected Shortfall (ES) has been widely accepted as a risk measure that is conceptually superior to Value-at-Risk (VaR). At the same time, however, it has been criticised for issues relating to backtesting. In particular, ES has been found…

Risk Management · Quantitative Finance 2015-11-20 Susanne Emmer , Marie Kratz , Dirk Tasche

Inverse optimal control can be used to characterize behavior in sequential decision-making tasks. Most existing work, however, is limited to fully observable or linear systems, or requires the action signals to be known. Here, we introduce…

Machine Learning · Computer Science 2023-10-31 Dominik Straub , Matthias Schultheis , Heinz Koeppl , Constantin A. Rothkopf

We consider a locally uniformly strictly elliptic second order partial differential operator in $\mathbb{R}^d$, $d\ge 2$, with low regularity assumptions on its coefficients, as well as an associated Hunt process and semigroup. The Hunt…

Probability · Mathematics 2022-01-21 Haesung Lee , Gerald Trutnau

We develop a model-free theory of general types of parametric regression for iid observations. The theory replaces the parameters of parametric models with statistical functionals, to be called "regression functionals'', defined on large…

Statistics Theory · Mathematics 2019-07-09 Andreas Buja , Lawrence Brown , Arun Kumar Kuchibhotla , Richard Berk , Ed George , Linda Zhao

We introduce two kinds of risk measures with respect to some reference probability measure, which both allow for a certain order structure and domination property. Analyzing their relation to each other leads to the question when a certain…

Risk Management · Quantitative Finance 2022-04-15 Christa Cuchiero , Guido Gazzani , Irene Klein

We consider a multidimensional random walk in a product random environment with bounded steps, transience in some spatial direction, and high enough moments on the regeneration time. We prove an invariance principle, or functional central…

Probability · Mathematics 2015-05-13 Firas Rassoul-Agha , Timo Seppalainen

This book deals with functions allowing to express the dissimilarity (discrepancy) between two data fields or ''divergence functions'' with the aim of applications to linear inverse problems. Most of the divergences found in the litterature…

Optimization and Control · Mathematics 2020-03-04 Henri Lantéri

We develop a new approach to solving classification problems, which is bases on the theory of coherent measures of risk and risk sharing ideas. The proposed approach aims at designing a risk-averse classifier. The new approach allows for…

Machine Learning · Statistics 2018-07-24 Constantine Vitt , Darinka Dentcheva , Hui Xiong

This paper is devoted to the introduction and study of a new family of multivariate elicitable risk measures. We call the obtained vector-valued measures multivariate expectiles. We present the different approaches used to construct our…

Methodology · Statistics 2016-09-27 Véronique Maume-Deschamps , Didier Rullière , Khalil Saïd

Inverse reinforcement learning (IRL) is an imitation learning approach to learning reward functions from expert demonstrations. Its use avoids the difficult and tedious procedure of manual reward specification while retaining the…

Machine Learning · Computer Science 2024-03-25 Daulet Baimukashev , Gokhan Alcan , Ville Kyrki

We axiomatically introduce risk-consistent conditional systemic risk measures defined on multidimensional risks. This class consists of those conditional systemic risk measures which can be decomposed into a state-wise conditional…

Risk Management · Quantitative Finance 2016-09-27 Hannes Hoffmann , Thilo Meyer-Brandis , Gregor Svindland

In this paper, we study the risk sharing problem among multiple agents using Lambda Value-at-Risk as their preference functional, under heterogeneous beliefs, where beliefs are represented by several probability measures. We obtain…

Risk Management · Quantitative Finance 2025-09-03 Peng Liu , Andreas Tsanakas , Yunran Wei

The objective in a traditional reinforcement learning (RL) problem is to find a policy that optimizes the expected value of a performance metric such as the infinite-horizon cumulative discounted or long-run average cost/reward. In…

Machine Learning · Computer Science 2022-05-25 Prashanth L. A. , Michael Fu

We introduce a new model of linear regression for random functional inputs taking into account the first order derivative of the data. We propose an estimation method which comes down to solving a special linear inverse problem. Our…

Statistics Theory · Mathematics 2016-08-16 André Mas , Besnik Pumo

The theory of acceptance sets and their associated risk measures plays a key role in the design of capital adequacy tests. The objective of this paper is to investigate, in the context of bounded financial positions, the class of…

Risk Management · Quantitative Finance 2014-02-05 Pablo Koch-Medina , Santiago Moreno-Bromberg , Cosimo Munari

We propose a general approach for supervised learning with structured output spaces, such as combinatorial and polyhedral sets, that is based on minimizing estimated conditional risk functions. Given a loss function defined over pairs of…

Machine Learning · Statistics 2017-02-28 Chong Yang Goh , Patrick Jaillet