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This paper studies Pareto-optimal reinsurance design in a monopolistic market with multiple primary insurers and a single reinsurer, all with heterogeneous risk preferences. The risk preferences are characterized by a family of risk…

Risk Management · Quantitative Finance 2025-12-15 Tim J. Boonen , Xia Han , Peng Liu , Jiacong Wang

The aims of this study are twofold. First, we consider an optimal risk allocation problem with non-convex preferences. By establishing an infimal representation for distortion risk measures, we give some necessary and sufficient conditions…

Risk Management · Quantitative Finance 2015-03-17 Hirbod Assa

In multi-task learning (MTL) with each task involving graph-dependent data, existing generalization analyses yield a \emph{sub-optimal} risk bound of $O(\frac{1}{\sqrt{n}})$, where $n$ is the number of training samples of each task.…

Machine Learning · Computer Science 2025-05-22 Xiao Shao , Guoqiang Wu

We consider optimal allocation problems with Conditional Value-At-Risk (CVaR) constraint. We prove, under very mild assumptions, the convergence of the Sample Average Approximation method (SAA) applied to this problem, and we also exhibit a…

Portfolio Management · Quantitative Finance 2025-05-19 Jérôme Lelong , Véronique Maume-Deschamps , William Thevenot

In this paper, we revisit the portfolio allocation problem with designated risk-budget [Qian, 2005]. We generalize the problem of arbitrary risk budgets with unequal correlations to one that includes return forecasts and transaction costs…

Computational Engineering, Finance, and Science · Computer Science 2022-10-04 Avinash Bhardwaj , Manjesh K Hanawal , Purushottam Parthasarathy

We propose a risk-averse statistical learning framework wherein the performance of a learning algorithm is evaluated by the conditional value-at-risk (CVaR) of losses rather than the expected loss. We devise algorithms based on stochastic…

Machine Learning · Computer Science 2020-02-17 Tasuku Soma , Yuichi Yoshida

We aim to analyze the behaviour of a finite-time stochastic system, whose model is not available, in the context of more rare and harmful outcomes. Standard estimators are not effective in making predictions about such outcomes due to their…

Methodology · Statistics 2022-07-29 Evan Arsenault , Yuheng Wang , Margaret P. Chapman

This paper presents a unified approach based on Wasserstein distance to derive concentration bounds for empirical estimates for two broad classes of risk measures defined in the paper. The classes of risk measures introduced include as…

Statistics Theory · Mathematics 2022-05-11 Prashanth L. A. , Sanjay P. Bhat

We propose forecast encompassing tests for the Expected Shortfall (ES) jointly with the Value at Risk (VaR) based on flexible link (or combination) functions. Our setup allows testing encompassing for convex forecast combinations and for…

Econometrics · Economics 2020-09-17 Timo Dimitriadis , Xiaochun Liu , Julie Schnaitmann

A new realized conditional autoregressive Value-at-Risk (VaR) framework is proposed, through incorporating a measurement equation into the original quantile regression model. The framework is further extended by employing various Expected…

Risk Management · Quantitative Finance 2021-01-18 Chao Wang , Richard Gerlach , Qian Chen

In this letter, we present an improved hazard rate twisting technique for the estimation of the probability that a sum of independent but not necessarily identically distributed subexponential Random Variables (RVs) exceeds a given…

Information Theory · Computer Science 2015-04-10 Nadhir Ben Rached , Abla Kammoun , Mohamed-Slim Alouini , Raul Tempone

Conditional Value at Risk (CVaR) is widely used to account for the preferences of a risk-averse agent in the extreme loss scenarios. To study the effectiveness of randomization in interdiction games with an interdictor that is both risk and…

Computer Science and Game Theory · Computer Science 2020-03-19 Utsav Sadana , Erick Delage

Controlling the dispersion of a subset of decision variables in an optimization problem is crucial for enforcing fairness or load-balancing across a wide range of applications. Building on the well-known equivalence of finite-dimensional…

Optimization and Control · Mathematics 2026-05-15 Abhay Singh Bhadoriya , Deepjyoti Deka , Kaarthik Sundar

Distribution-on-distribution regression considers the problem of formulating and estimating a regression relationship where both covariate and response are probability distributions. The optimal transport distributional regression model…

Statistics Theory · Mathematics 2022-06-06 Laya Ghodrati , Victor M. Panaretos

We conduct a non asymptotic study of the Cross Validation (CV) estimate of the generalization risk for learning algorithms dedicated to extreme regions of the covariates space. In this Extreme Value Analysis context, the risk function…

Statistics Theory · Mathematics 2024-09-12 Anass Aghbalou , Patrice Bertail , François Portier , Anne Sabourin

The problem of finding the optimal portfolio for investors is called the portfolio optimization problem. Such problem mainly concerns the expectation and variability of return (i.e., mean and variance). Although the variance would be the…

Portfolio Management · Quantitative Finance 2020-07-21 Kei Nakagawa , Shuhei Noma , Masaya Abe

We study problem-dependent rates, i.e., generalization errors that scale near-optimally with the variance, the effective loss, or the gradient norms evaluated at the "best hypothesis." We introduce a principled framework dubbed "uniform…

Machine Learning · Statistics 2020-12-25 Yunbei Xu , Assaf Zeevi

For elliptic systems with block structure in the upper half-space and t-independent coefficients, we settle the study of boundary value problems by proving compatible well-posedness of Dirichlet, regularity and Neumann problems in optimal…

Analysis of PDEs · Mathematics 2024-04-04 Pascal Auscher , Moritz Egert

We develop a general theory of risk measures that determines the optimal amount of capital to raise and invest in a portfolio of reference traded securities in order to meet a pre-specified regulatory requirement. The distinguishing feature…

Mathematical Finance · Quantitative Finance 2021-11-17 Maria Arduca , Cosimo Munari

We consider repeated allocation of a shared resource via a non-monetary mechanism, wherein a single item must be allocated to one of multiple agents in each round. We assume that each agent has i.i.d. values for the item across rounds, and…

Computer Science and Game Theory · Computer Science 2025-11-07 David X. Lin , Siddhartha Banerjee , Giannis Fikioris , Éva Tardos
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