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Related papers: Heavy Tails and Predictive Ability Testing

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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

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

We examine statistical pictures of violent conflicts over the last 2000 years, finding techniques for dealing with incompleteness and unreliability of historical data. We introduce a novel approach to apply extreme value theory to…

Applications · Statistics 2016-09-05 Pasquale Cirillo , Nassim Nicholas Taleb

Inference over tails is usually performed by fitting an appropriate limiting distribution over observations that exceed a fixed threshold. However, the choice of such threshold is critical and can affect the inferential results. Extreme…

Statistical Finance · Quantitative Finance 2019-02-26 Chiara Lattanzi , Manuele Leonelli

We study heavy-tailed Hermitian random matrices that are unitarily invariant. The invariance implies that the eigenvalue and eigenvector statistics are decoupled. The motivating question has been whether a freely stable random matrix has…

Mathematical Physics · Physics 2021-09-27 Mario Kieburg , Adam Monteleone

Large deviations for sums of i.i.d.\ random variables with stretched-exponential tails (also called Weibull or semi-exponential tails) have been well understood since the 60's, going back to Nagaev's seminal work. Many extensions in the…

Probability · Mathematics 2026-02-04 Nina Gantert , Joscha Prochno , Philipp Tuchel

While the {estimation} of risk is an important question in the daily business of banking and insurance, many existing plug-in estimation procedures suffer from an unnecessary bias. This often leads to the underestimation of risk and…

Risk Management · Quantitative Finance 2022-02-04 Marcin Pitera , Thorsten Schmidt

We investigate robust nonparametric regression in the presence of heavy-tailed noise, where the hypothesis class may contain unbounded functions and robustness is ensured via a robust loss function $\ell_\sigma$. Using Huber regression as a…

Machine Learning · Computer Science 2025-10-14 Yunlong Feng , Qiang Wu

We examine random variables in the power law/regularly varying class with stochastic tail exponent, the exponent $\alpha$ having its own distribution. We show the effect of stochasticity of $\alpha$ on the expectation and higher moments of…

Statistical Finance · Quantitative Finance 2017-04-06 Nassim Nicholas Taleb

We analyse the properties of the Diebold and Mariano (1995) test in the presence of autocorrelation in the loss differential. We show that the power of the Diebold and Mariano (1995) test decreases as the dependence increases, making it…

Econometrics · Economics 2025-01-14 Laura Coroneo , Fabrizio Iacone

Statistical analysis of extremes can be used to predict the probability of future extreme events, such as large rainfalls or devastating windstorms. The quality of these forecasts can be measured through scoring rules. Locally scale…

Methodology · Statistics 2024-02-22 Helga Kristin Olafsdottir , Holger Rootzén , David Bolin

This paper studies the propagation of finite-sample uncertainty under nonlinear transformations commonly used in statistical decision systems. In particular, we consider process capability indices, which are widely used in manufacturing…

Applications · Statistics 2026-05-11 Fei Jiang , Lei Yang

We propose a set of dependence measures that are non-linear, local, invariant to a wide range of transformations on the marginals, can show tail and risk asymmetries, are always well-defined, are easy to estimate and can be used on any…

Statistical Finance · Quantitative Finance 2023-09-04 Aleksy Leeuwenkamp , Wentao Hu

An influential line of recent work has focused on the generalization properties of unregularized gradient-based learning procedures applied to separable linear classification with exponentially-tailed loss functions. The ability of such…

Machine Learning · Computer Science 2022-06-24 Matan Schliserman , Tomer Koren

In this note we prove bounds on the upper and lower probability tails of sums of independent geometric or exponentially distributed random variables. We also prove negative results showing that our established tail bounds are asymptotically…

Statistics Theory · Mathematics 2019-02-11 Yaonan Jin , Yingkai Li , Yining Wang , Yuan Zhou

Extreme U-statistics arise when the kernel of a U-statistic has a high degree but depends only on its arguments through a small number of top order statistics. As the kernel degree of the U-statistic grows to infinity with the sample size,…

Statistics Theory · Mathematics 2023-01-09 Jochem Oorschot , Johan Segers , Chen Zhou

We study the large-time asymptotic of renewal-reward processes with a heavy-tailed waiting time distribution. It is known that the heavy tail of the distribution produces an extremely slow dynamics, resulting in a singular large deviation…

Mathematical Physics · Physics 2022-01-05 Hiroshi Horii , Raphael Lefevere , Takahiro Nemoto

Score-based diffusion models have become a powerful framework for generative modeling, with score estimation as a central statistical bottleneck. Existing guarantees for score estimation largely focus on light-tailed targets or rely on…

Statistics Theory · Mathematics 2026-01-13 Yifeng Yu , Lu Yu

We consider Stochastic Volatility processes with heavy tails and possible long memory in volatility. We study the limiting conditional distribution of future events given that some present or past event was extreme (i.e. above a level which…

Statistics Theory · Mathematics 2011-08-17 Rafał Kulik , Philippe Soulier

Inference over tails is performed by applying only the results of extreme value theory. Whilst such theory is well defined and flexible enough in the univariate case, multivariate inferential methods often require the imposition of…

Methodology · Statistics 2017-08-11 Manuele Leonelli , Dani Gamerman