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We propose a new class of extreme-value copulas which are extreme-value limits of conditional normal models. Conditional normal models are generalizations of conditional independence models, where the dependence among observed variables is…

Methodology · Statistics 2021-02-16 Pavel Krupskii , Marc G. Genton

A popular measure of association is the tail dependence coefficient which measures the strength of dependence in either the lower-left or upper-right tail of a bivariate distribution. In this paper, we develop the idea of quantile…

Statistics Theory · Mathematics 2024-02-09 A. Dastbaravarde , A. Dolati

In this paper, we examine two problems on applied probability, which are directly connected with the dependence in presence of heavy tails. The first problem, is related to max-sum equivalence of the randomly weighted sums in bi-variate set…

Probability · Mathematics 2025-05-27 Dimitrios G. Konstantinides , Charalampos D. Passalidis

We investigate the relative information content of six measures of dependence between two random variables $X$ and $Y$ for large or extreme events for several models of interest for financial time series. The six measures of dependence are…

Statistical Mechanics · Physics 2008-12-10 Y. Malevergne , D. Sornette

We introduce a novel bivariate copula model able to capture both the central and tail dependence of the joint probability distribution. Model that can capture the dependence structure within the joint tail have important implications in…

Methodology · Statistics 2025-08-01 Maria Concepción Ausín , Maria Kalli

This paper studies the extreme dependencies between energy, agriculture and metal commodity markets, with a focus on local co-movements, allowing the identification of asymmetries and changing trend in the degree of co-movements. More…

Computational Finance · Quantitative Finance 2020-03-10 Claudiu Albulescu , Aviral Tiwari , Qiang Ji

We establish a statistical learning theoretical framework aimed at extrapolation, or out-of-domain generalization, on the unobserved tails of covariates in continuous regression problems. Our strategy involves performing statistical…

Machine Learning · Statistics 2025-09-15 Stephan Clémençon , Nathan Huet , Anne Sabourin

Understanding multivariate dependencies in both the bulk and the tails of a distribution is an important problem for many applications, such as ensuring algorithms are robust to observations that are infrequent but have devastating effects.…

Methodology · Statistics 2022-09-21 Yuting Ng , Ali Hasan , Vahid Tarokh

Financial networks can be constructed using statistical dependencies found within the price series of speculative assets. Across the various methods used to infer these networks, there is a general reliance on predictive modelling to…

Statistical Finance · Quantitative Finance 2024-08-23 Cameron Cornell , Lewis Mitchell , Matthew Roughan

We develop an extreme value framework for CoVaR centered on $v(q \mid p ; C)$, the copula-adjusted probability level, or equivalently, the CoVaR on the uniform (0,1) scale. We characterize the possible tail regimes of $v(q \mid p ; C)$…

Methodology · Statistics 2026-03-31 Xiaoting Li , Harry Joe

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

We propose a stochastic process driven by the memory effect with novel distributions which include both exponential and leptokurtic heavy-tailed distributions. A class of the distributions is analytically derived from the continuum limit of…

Statistics Theory · Mathematics 2012-03-27 Jongwook Kim , Teppei Okumura

In this paper, we investigate risk measures such as value at risk (VaR) and the conditional tail expectation (CTE) of the extreme (maximum and minimum) and the aggregate (total) of two dependent risks. In finance, insurance and the other…

Risk Management · Quantitative Finance 2021-02-01 Suman Thapa , Yiqiang Q. Zhao

The replacement of indicator functions by integrated beta kernels in the definition of the empirical stable tail dependence function is shown to produce a smoothed version of the latter estimator with the same asymptotic distribution but…

Methodology · Statistics 2017-09-13 Anna Kiriliouk , Johan Segers , Laleh Tafakori

Extreme events are often multivariate in nature. A compound extreme occurs when a combination of variables jointly produces a significant impact, even if individual components are not necessarily marginally extreme. Compound extremes have…

Methodology · Statistics 2025-09-24 Cathy Yin , Adam M. Sykulski , Almut E. D. Veraart

We develop a novel characterization of extremal dependence between two cortical regions of the brain when its signals display extremely large amplitudes. We show that connectivity in the tails of the distribution reveals unique features of…

Machine Learning · Statistics 2025-12-09 Mara Sherlin Talento , Jordan Richards , Raphael Huser , Hernando Ombao

The extreme value dependence of regularly varying stationary time series can be described by the spectral tail process. Drees, Segers and Warchol [Extremes 18(3): 369--402, 2015] proposed estimators of the marginal distributions of this…

Statistics Theory · Mathematics 2019-07-23 Holger Drees , Miran Knezevic

The thesis is composed of three parts. Part I introduces the mathematical and statistical tools that are relevant for the study of dependences, as well as statistical tests of Goodness-of-fit for empirical probability distributions. I…

Statistical Finance · Quantitative Finance 2013-09-20 Rémy Chicheportiche

To draw inference on serial extremal dependence within heavy-tailed Markov chains, Drees, Segers and Warcho{\l} [Extremes (2015) 18, 369--402] proposed nonparametric estimators of the spectral tail process. The methodology can be extended…

Methodology · Statistics 2018-01-30 R. A. Davis , H. Drees , J. Segers , M. Warchoł

A variety of methods have been proposed for inference about extreme dependence for multivariate or spatially-indexed stochastic processes and time series. Most of these proceed by first transforming data to some specific extreme value…

Statistics Theory · Mathematics 2018-05-22 James E. Johndrow , Robert L. Wolpert