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The tail correlation function (TCF) is one of the most popular bivariate extremal dependence measures that has entered the literature under various names. We study to what extent the TCF can distinguish between different classes of…

Probability · Mathematics 2014-02-20 Kirstin Strokorb , Felix Ballani , Martin Schlather

In the world of multivariate extremes, estimation of the dependence structure still presents a challenge and an interesting problem. A procedure for the bivariate case is presented that opens the road to a similar way of handling the…

Statistics Theory · Mathematics 2008-11-14 John H. J. Einmahl , Andrea Krajina , Johan Segers

A central issue in the theory of extreme values focuses on suitable conditions such that the well-known results for the limiting distributions of the maximum of i.i.d. sequences can be applied to stationary ones. In this context, the…

Statistics Theory · Mathematics 2017-02-07 Helena Ferreira , Marta Ferreira

The mean-variance portfolio model, based on the risk-return trade-off for optimal asset allocation, remains foundational in portfolio optimization. However, its reliance on restrictive assumptions about asset return distributions limits its…

Portfolio Management · Quantitative Finance 2025-04-17 Savita Pareek , Sujit K. Ghosh

In this paper, we introduce a new class of models for spatial data obtained from max-convolution processes based on indicator kernels with random shape. We show that this class of models have appealing dependence properties including tail…

Methodology · Statistics 2023-10-17 Pavel Krupskii , Raphaël Huser

The study of loss function distributions is critical to characterize a model's behaviour on a given machine learning problem. For example, while the quality of a model is commonly determined by the average loss assessed on a testing set,…

Machine Learning · Computer Science 2023-06-06 Etrit Haxholli , Marco Lorenzi

In this paper, we study critical and subcritical branching $\alpha$-stable processes, $\alpha \in (0, 2)$. We obtain the exact asymptotic behaviors of the tails of the maximal positions of all subcritical branching $\alpha$-stable processes…

Probability · Mathematics 2025-04-09 Haojie Hou , Yiyang Jiang , Yan-Xia Ren , Renming Song

Estimating the probability of extreme events involving multiple risk factors is a critical challenge in fields such as finance and climate science. This paper proposes a semi-parametric approach to estimate the probability that a…

Methodology · Statistics 2024-12-31 Anna Kiriliouk , Chen Zhou

We propose a novel approach for detecting change points in high-dimensional linear regression models. Unlike previous research that relied on strict Gaussian/sub-Gaussian error assumptions and had prior knowledge of change points, we…

Methodology · Statistics 2024-05-22 Bin Liu , Zhengling Qi , Xinsheng Zhang , Yufeng Liu

This paper deals with dependence across marginally exponentially distributed arrival times, such as default times in financial modeling or inter-failure times in reliability theory. We explore the relationship between dependence and the…

Probability · Mathematics 2012-05-01 Damiano Brigo , Kyriakos Chourdakis

We consider a family of multivariate distributions with heavy-tailed margins and the type I elliptical dependence structure. This class of risks is common in finance, insurance, environmental and biostatistic applications. We obtain the…

Statistics Theory · Mathematics 2024-05-01 Kai Wang , Chengxiu Ling

To disentangle the complex non-stationary dependence structure of precipitation extremes over the entire contiguous U.S., we propose a flexible local approach based on factor copula models. Our sub-asymptotic spatial modeling framework…

Applications · Statistics 2019-03-26 Daniela Castro-Camilo , Raphaël Huser

This article discusses modelling of the tail of a multivariate distribution function by means of a large deviation principle (LDP), and its application to the estimation of the probability of a multivariate extreme event from a sample of n…

Statistics Theory · Mathematics 2017-02-23 Cees de Valk

We introduce a new stochastic order for the tail dependence between random variables. We then study different measures of tail dependence which are monotone in the proposed order, thereby extending various known tail dependence coefficients…

Risk Management · Quantitative Finance 2022-08-23 Karl Friedrich Siburg , Christopher Strothmann , Gregor Weiß

Rank-based dependence measures such as Spearman's footrule are robust and invariant, but they often fail to capture directional or asymmetric dependence in multivariate settings. This paper introduces a new family of directional Spearman's…

Statistics Theory · Mathematics 2026-01-27 Enrique de Amo , David García-Fernández , Manuel Úbeda-Flores

An asymptotic model for extreme behavior of certain Markov chains is the "tail chain". Generally taking the form of a multiplicative random walk, it is useful in deriving extremal characteristics such as point process limits. We place this…

Probability · Mathematics 2011-12-30 Sidney I. Resnick , David Zeber

This paper addresses the problem of estimating the tail index of distributions with heavy, Pareto-type tails for dependent data, that is of interest in the areas of finance, insurance, environmental monitoring and teletraffic analysis. A…

Methodology · Statistics 2010-05-25 Stilian A Stoev , George Michailidis

The tail-dependence compatibility problem is introduced. It raises the question whether a given $d\times d$-matrix of entries in the unit interval is the matrix of pairwise tail-dependence coefficients of a $d$-dimensional random vector.…

Probability · Mathematics 2016-06-28 Paul Embrechts , Marius Hofert , Ruodu Wang

Risk measures like Marginal Expected Shortfall and Marginal Mean Excess quantify conditional risk and in particular, aid in the understanding of systemic risk. In many such scenarios, models exhibiting heavy tails in the margins and…

Probability · Mathematics 2018-02-07 Bikramjit Das , Vicky Fasen-Hartmann

For a stochastic process $\{X_t\}_{t \in T}$ with identical one-dimensional margins and upper endpoint $\tau_{\text{up}}$ its tail correlation function (TCF) is defined through $\chi^{(X)}(s,t) = \lim_{\tau \to \tau_{\text{up}}} P(X_s >…

Probability · Mathematics 2016-03-25 Ulf-Rainer Fiebig , Kirstin Strokorb , Martin Schlather