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The increasing penetration of embedded renewables makes forecasting net-load, consumption less embedded generation, a significant and growing challenge. Here a framework for producing probabilistic forecasts of net-load is proposed with…

Applications · Statistics 2022-10-06 Jethro Browell , Matteo Fasiolo

We develop an unsupervised mixture model for non-negative, skewed and heavy-tailed data, such as losses in actuarial and risk management applications. The mixture has a lognormal component, which is usually appropriate for the body of the…

Methodology · Statistics 2025-05-29 Marco Bee , Flavio Santi

With the emergence of new application areas, such as cyber-physical systems and human-in-the-loop applications, there is a need to guarantee a certain level of end-to-end network latency with extremely high reliability, e.g., 99.999%. While…

Networking and Internet Architecture · Computer Science 2023-07-21 Samie Mostafavi , Gourav Prateek Sharma , James Gross

Accurate demand forecasts can help on-line retail organizations better plan their supply-chain processes. The challenge, however, is the large number of associative factors that result in large, non-stationary shifts in demand, which…

Quantifying changes in the probability and magnitude of extreme flooding events is key to mitigating their impacts. While hydrodynamic data are inherently spatially dependent, traditional spatial models such as Gaussian processes are poorly…

Methodology · Statistics 2024-05-06 Reetam Majumder , Brian J. Reich , Benjamin A. Shaby

Modeling uncertainty in heavy-tailed time series remains a critical challenge for deep probabilistic forecasting models, which often struggle to capture abrupt, extreme events. While L\'evy stable distributions offer a natural framework for…

Machine Learning · Computer Science 2026-05-15 Yang Yang , Du Yin , Hao Xue , Flora Salim

This thesis evaluates most of the extreme mixture models and methods that have appended in the literature and implements them in the context of finance and insurance. The paper also reviews and studies extreme value theory, time series,…

General Economics · Economics 2024-07-09 Yujuan Qiu

Accurate forecasting of volatility and return quantiles is essential for evaluating financial tail risks such as value-at-risk and expected shortfall. This study proposes an extension of the traditional stochastic volatility model, termed…

Econometrics · Economics 2026-02-02 Makoto Takahashi , Yuta Yamauchi , Toshiaki Watanabe , Yasuhiro Omori

We consider the fitting of heavy tailed data and distribution with a special attention to distributions with a non--standard shape in the "body" of the distribution. To this end we consider a dense class of heavy tailed distributions…

Statistics Theory · Mathematics 2017-05-15 Mogens Bladt , Leonardo Rojas-Nandayapa

This paper introduces the multivariate tail-inflated normal (MTIN) distribution, an elliptical heavy-tails generalization of the multivariate normal (MN). The MTIN belongs to the family of MN scale mixtures by choosing a convenient…

Methodology · Statistics 2020-06-23 Antonio Punzo , Luca Bagnato

Time Series Forecasting (TSF) is a widely researched topic with broad applications in weather forecasting, traffic control, and stock price prediction. Extreme values in time series often significantly impact human and natural systems, but…

Machine Learning · Computer Science 2023-10-12 Jincheng Wang , Yue Gao

Despite the notable advancements in numerous Transformer-based models, the task of long multi-horizon time series forecasting remains a persistent challenge, especially towards explainability. Focusing on commonly used saliency maps in…

Machine Learning · Computer Science 2023-09-18 Nghia Duong-Trung , Duc-Manh Nguyen , Danh Le-Phuoc

We propose a parsimonious quantile regression framework to learn the dynamic tail behaviors of financial asset returns. Our model captures well both the time-varying characteristic and the asymmetrical heavy-tail property of financial time…

Risk Management · Quantitative Finance 2020-10-19 Xing Yan , Weizhong Zhang , Lin Ma , Wei Liu , Qi Wu

Expected risk minimization (ERM) is at the core of many machine learning systems. This means that the risk inherent in a loss distribution is summarized using a single number - its average. In this paper, we propose a general approach to…

Machine Learning · Computer Science 2023-01-24 Christian Fröhlich , Robert C. Williamson

Financial returns are known to exhibit heavy tails, volatility clustering and abrupt jumps that are poorly captured by classical diffusion models. Advances in machine learning have enabled highly flexible functional forms for conditional…

Risk Management · Quantitative Finance 2025-09-03 Ziyao Wang , Svetlozar T Rachev

Neural networks offer a versatile, flexible and accurate approach to loss reserving. However, such applications have focused primarily on the (important) problem of fitting accurate central estimates of the outstanding claims. In practice,…

Methodology · Statistics 2022-08-09 Muhammed Taher Al-Mudafer , Benjamin Avanzi , Greg Taylor , Bernard Wong

This work proposes a novel method to robustly and accurately model time series with heavy-tailed noise, in non-stationary scenarios. In many practical application time series have heavy-tailed noise that significantly impacts the…

Machine Learning · Statistics 2022-08-01 Elena Ehrlich , Laurent Callot , François-Xavier Aubet

We present neural mixture distributional regression (NMDR), a holistic framework to estimate complex finite mixtures of distributional regressions defined by flexible additive predictors. Our framework is able to handle a large number of…

Computation · Statistics 2020-10-15 David Rügamer , Florian Pfisterer , Bernd Bischl

The estimation of loss distributions for dynamic portfolios requires the simulation of scenarios representing realistic joint dynamics of their components. We propose a novel data-driven approach for simulating realistic, high-dimensional…

Risk Management · Quantitative Finance 2025-05-19 Rama Cont , Mihai Cucuringu , Renyuan Xu , Chao Zhang

Impact assessment of natural hazards requires the consideration of both extreme and non-extreme events. Extensive research has been conducted on the joint modeling of bulk and tail in univariate settings; however, the corresponding body of…

Methodology · Statistics 2026-03-31 Chenglei Hu , Ben Swallow , Daniela Castro-Camilo
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