English
Related papers

Related papers: Wishart conditional tail risk measures: An analyti…

200 papers

We introduce a novel class of systemic risk measures, the Vulnerability Conditional risk measures, which try to capture the "tail risk" of a risky position in scenarios where one or more market participants is experiencing financial…

Risk Management · Quantitative Finance 2024-11-15 Tong Pu , Yunran Wei , Yiying Zhang

The tail measure of a regularly varying stationary time series has been recently introduced. It is used in this contribution to reconsider certain properties of the tail process and establish new ones. A new formulation of the time change…

Probability · Mathematics 2017-12-01 Hrvoje Planinić , Philippe Soulier

This paper proposes control approaches for discrete-time linear systems subject to stochastic disturbances. It employs Kalman filter to estimate the mean and covariance of the state propagation, and the worst-case conditional value-at-risk…

Optimization and Control · Mathematics 2024-12-20 Masako Kishida

We develop a risk-averse safety analysis method for stochastic systems on discrete infinite time horizons. Our method quantifies the notion of risk for a control system in terms of the severity of a harmful random outcome in a fraction of…

Systems and Control · Electrical Eng. & Systems 2022-03-14 Chuanning Wei , Michael Fauss , Margaret P. Chapman

In complex systems, crucial parameters are often subject to unpredictable changes in time. Climate, biological evolution and networks provide numerous examples for such non-stationarities. In many cases, improved statistical models are…

Statistical Finance · Quantitative Finance 2015-12-09 Frederik Meudt , Martin Theissen , Rudi Schäfer , Thomas Guhr

Our goal in this paper is to propose an alternative risk measure which takes into account the fluctuations of losses and possible correlations between random variables. This new notion of risk measures, that we call Copula Conditional Tail…

Statistics Theory · Mathematics 2015-03-20 Brahim Brahimi

Expectiles define the only law-invariant, coherent and elicitable risk measure apart from the expectation. The popularity of expectile-based risk measures is steadily growing and their properties have been studied for independent data, but…

Methodology · Statistics 2021-10-13 Anthony C. Davison , Simone A. Padoan , Gilles Stupfler

In risk management, tail risks are of crucial importance. The quality of a tail model, which is determined by data from an unknown distribution, depends critically on the subset of data used to model the tail. Based on a suitably weighted…

Methodology · Statistics 2021-01-19 Ingo Hoffmann , Christoph J. Börner

A Bayesian procedure is developed for multivariate stochastic volatility, using state space models. An autoregressive model for the log-returns is employed. We generalize the inverted Wishart distribution to allow for different correlation…

Statistical Finance · Quantitative Finance 2008-12-02 K. Triantafyllopoulos

Risk management is very important for individual investors or companies. There are many ways to measure the risk of investment. Prices of risky assets vary rapidly and randomly due to the complexity of finance market. Random interval is a…

Portfolio Management · Quantitative Finance 2022-07-26 Jinping Zhang , Keming Zhang

We consider a multivariate heavy-tailed stochastic volatility model and analyze the large-sample behavior of its sample covariance matrix. We study the limiting behavior of its entries in the infinite-variance case and derive results for…

Probability · Mathematics 2016-05-10 Anja Janßen , Thomas Mikosch , Mohsen Rezapour , Xiaolei Xie

The need for a systematic approach to risk assessment has increased in recent years due to the ubiquity of autonomous systems that alter our day-to-day experiences and their need for safety, e.g., for self-driving vehicles, mobile service…

For measuring tail risk with scarce extreme events, extreme value analysis is often invoked as the statistical tool to extrapolate to the tail of a distribution. The presence of large datasets benefits tail risk analysis by providing more…

Methodology · Statistics 2023-12-18 Liujun Chen , Deyuan Li , Chen Zhou

Estimation of tail quantities, such as expected shortfall or Value at Risk, is a difficult problem. We show how the theory of nonlinear expectations, in particular the Data-robust expectation introduced in [5], can assist in the…

Statistics Theory · Mathematics 2018-02-15 Samuel N. Cohen

This paper develops a Bayesian procedure for estimation and forecasting of the volatility of multivariate time series. The foundation of this work is the matrix-variate dynamic linear model, for the volatility of which we adopt a…

Statistical Finance · Quantitative Finance 2008-12-02 K. Triantafyllopoulos

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

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

The present article is devoted to the semi-parametric estimation of multivariate expectiles for extreme levels. The considered multivariate risk measures also include the possible conditioning with respect to a functional covariate,…

Statistics Theory · Mathematics 2023-03-30 Elena Di Bernardino , Thomas Laloë , Cambyse Pakzad

We investigate to which extent the relevant features of (static) Systemic Risk Measures can be extended to a conditional setting. After providing a general dual representation result, we analyze in greater detail Conditional Shortfall…

Mathematical Finance · Quantitative Finance 2021-05-12 Alessandro Doldi , Marco Frittelli

Risk management often plays an important role in decision making under uncertainty. In quantitative risk management, assessing and optimizing risk metrics requires efficient computing techniques and reliable theoretical guarantees. In this…

Optimization and Control · Mathematics 2026-01-01 Zhaolin Hu