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This paper attempts to provide a decision-theoretic foundation for the measurement of economic tail risk, which is not only closely related to utility theory but also relevant to statistical model uncertainty. The main result is that the…

Risk Management · Quantitative Finance 2015-08-18 Steven Kou , Xianhua Peng

In this paper, we propose TEDL, a two-stage learning approach to quantify uncertainty for deep learning models in classification tasks, inspired by our findings in experimenting with Evidential Deep Learning (EDL) method, a recently…

Machine Learning · Computer Science 2022-09-14 Xue Li , Wei Shen , Denis Charles

We investigate high-dimensional sparse regression when both the noise and the design matrix exhibit heavy-tailed behavior. Standard algorithms typically fail in this regime, as heavy-tailed covariates distort the empirical risk geometry. We…

Methodology · Statistics 2026-01-12 Kaiyuan Zhou , Xiaoyu Zhang , Wenyang Zhang , Di Wang

There is a significant need for principled uncertainty reasoning in machine learning systems as they are increasingly deployed in safety-critical domains. A new approach with uncertainty-aware regression-based neural networks (NNs), based…

Machine Learning · Computer Science 2023-07-21 Nis Meinert , Jakob Gawlikowski , Alexander Lavin

Nonlinear regression problem is one of the most popular and important statistical tasks. The first methods like least squares estimation go back to Gauss and Legendre. Recent models and developments in statistics and machine learning like…

Statistics Theory · Mathematics 2025-02-20 Vladimir Spokoiny

Big data can easily be contaminated by outliers or contain variables with heavy-tailed distributions, which makes many conventional methods inadequate. To address this challenge, we propose the adaptive Huber regression for robust…

Statistics Theory · Mathematics 2018-10-11 Qiang Sun , Wenxin Zhou , Jianqing Fan

High-dimensional data can often display heterogeneity due to heteroscedastic variance or inhomogeneous covariate effects. Penalized quantile and expectile regression methods offer useful tools to detect heteroscedasticity in…

Methodology · Statistics 2023-03-23 Rebeka Man , Kean Ming Tan , Zian Wang , Wen-Xin Zhou

Standard statistical analysis is unable to provide reliable confidence intervals on expectation values of probability distributions that do not satisfy the conditions of the central limit theorem. We present a regression-based estimator of…

Data Analysis, Statistics and Probability · Physics 2019-06-24 Pablo Lopez Rios , Gareth J. Conduit

We introduce new forecast encompassing tests for the risk measure Expected Shortfall (ES). The ES currently receives much attention through its introduction into the Basel III Accords, which stipulate its use as the primary market risk…

Risk Management · Quantitative Finance 2020-08-31 Timo Dimitriadis , Julie Schnaitmann

We introduce a new regression method that relates the mean of an outcome variable to covariates, under the "adverse condition" that a distress variable falls in its tail. This allows to tailor classical mean regressions to adverse…

Econometrics · Economics 2025-02-04 Timo Dimitriadis , Yannick Hoga

We propose a novel deep symbolic regression approach to enhance the robustness and interpretability of data-driven mathematical expression discovery. Our work is aligned with the popular DSR framework which focuses on learning a…

Machine Learning · Computer Science 2026-03-30 Zachary Bastiani , Robert M. Kirby , Jacob Hochhalter , Shandian Zhe

We consider the linear regression problem under semi-supervised settings wherein the available data typically consists of: (i) a small or moderate sized 'labeled' data, and (ii) a much larger sized 'unlabeled' data. Such data arises…

Methodology · Statistics 2018-07-02 Abhishek Chakrabortty , Tianxi Cai

This paper studies a fixed-design residual bootstrap method for the two-step estimator of Francq and Zako\"ian (2015) associated with the conditional Expected Shortfall. For a general class of volatility models the bootstrap is shown to be…

Econometrics · Economics 2018-11-29 Alexander Heinemann , Sean Telg

We propose a multilevel stochastic approximation (MLSA) scheme for the computation of the value-at-risk (VaR) and expected shortfall (ES) of a financial loss, which can only be computed via simulations conditionally on the realisation of…

Computational Finance · Quantitative Finance 2026-04-14 Stéphane Crépey , Noufel Frikha , Azar Louzi

Stochastic nonlinear dynamical systems are ubiquitous in modern, real-world applications. Yet, estimating the unknown parameters of stochastic, nonlinear dynamical models remains a challenging problem. The majority of existing methods…

Machine Learning · Statistics 2022-05-06 Anubhab Ghosh , Mohamed Abdalmoaty , Saikat Chatterjee , Håkan Hjalmarsson

In this paper, we study the use of robust model independent bounded extremum seeking (ES) feedback control to improve the robustness of deep reinforcement learning (DRL) controllers for a class of nonlinear time-varying systems. DRL has the…

Machine Learning · Computer Science 2026-03-11 Shaifalee Saxena , Alan Williams , Rafael Fierro , Alexander Scheinker

Understanding whether fine-tuning elicits latent capabilities or teaches new ones is a fundamental question for language model evaluation and safety. We develop a formal information-theoretic framework for quantifying how much predictive…

Machine Learning · Computer Science 2026-01-09 Elizabeth Donoway , Hailey Joren , Fabien Roger , Jan Leike

This paper presents a number of new findings about the canonical change point estimation problem. The first part studies the estimation of a change point on the real line in a simple stump model using the robust Huber estimating function…

Statistics Theory · Mathematics 2021-05-26 Debarghya Mukherjee , Moulinath Banerjee , Ya'acov Ritov

In this paper, we propose a reduced-bias estimator of the EVI for Pareto-type tails (heavy-tailed) distributions. This is derived using the weighted least squares method. It is shown that the estimator is unbiased, consistent and…

Methodology · Statistics 2022-04-12 E. Ocran , R. Minkah , K. Doku-Amponsah

Extending Buehler et al.'s 2019 Deep Hedging paradigm, we innovatively employ deep neural networks to parameterize convex-risk minimization (CVaR/ES) for the portfolio tail-risk hedging problem. Through comprehensive numerical experiments…

Portfolio Management · Quantitative Finance 2025-07-01 Yuming Ma
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