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It is well known that the distribution of returns from various financial instruments are leptokurtic, meaning that the distributions have "fatter tails" than a Normal distribution, and have skew toward zero. This paper presents a graceful…

Trading and Market Microstructure · Quantitative Finance 2013-04-03 Ben Klemens

We consider the sums $S_n=\xi_1+\cdots+\xi_n$ of independent identically distributed random variables. We do not assume that the $\xi$'s have a finite mean. Under subexponential type conditions on distribution of the summands, we find the…

Probability · Mathematics 2013-03-20 D. Denisov , S. Foss , D. Korshunov

An estimator for the $\M$-index of functions of $\mathcal{M}$, a larger class than the class of regularly varying (RV) functions, is proposed. This index is the tail index of RV functions and this estimator is thus a new one on the class of…

Statistics Theory · Mathematics 2015-12-08 Meitner Cadena

We present sharp tail asymptotics for the density and the distribution function of linear combinations of correlated log-normal random variables, that is, exponentials of components of a correlated Gaussian vector. The asymptotic behavior…

Probability · Mathematics 2016-01-07 Archil Gulisashvili , Peter Tankov

We study a new estimator for the tail index of a distribution in the Frechet domain of attraction that arises naturally by computing subsample maxima. This estimator is equivalent to taking a U-statistic over a Hill estimator with two order…

Methodology · Statistics 2015-03-20 Stefan Wager

The paper suggests a simple method of deriving minimax lower bounds to the accuracy of statistical inference on heavy tails. A well-known result by Hall and Welsh (Ann. Statist. 12 (1984) 1079-1084) states that if $\hat{\alpha}_n$ is an…

Statistics Theory · Mathematics 2014-03-14 S. Y. Novak

The estimation of the extremal dependence structure is spoiled by the impact of the bias, which increases with the number of observations used for the estimation. Already known in the univariate setting, the bias correction procedure is…

Statistics Theory · Mathematics 2015-04-03 Anne-Laure Fougères , Laurens de Haan , Cécile Mercadier

In this paper, we obtain some results on precise large deviations for non-random and random sums of widely dependent random variables with common dominatedly varying tail distribution or consistently varying tail distribution on…

Probability · Mathematics 2021-06-14 Zhaolei Cui , Yuebao Wang

A novel statistical method is proposed and investigated for estimating a heavy tailed density under mild smoothness assumptions. Statistical analyses of heavy-tailed distributions are susceptible to the problem of sparse information in the…

Methodology · Statistics 2022-11-18 Surya T Tokdar , Sheng Jiang , Erika L Cunningham

Assessing dependence within co-movements of financial instruments has been of much interest in risk management. Typically, indices of tail dependence are used to quantify the strength of such dependence, although many of the indices…

Methodology · Statistics 2022-09-21 Ning Sun , Chen Yang , Ričardas Zitikis

We construct a Banach rearrangement invariant norm on the measurable space for which the finiteness of this norm for measurable function (random variable) is equivalent to suitable tail (heavy tail and light tail) behavior. We investigate…

Functional Analysis · Mathematics 2012-10-04 E. Ostrovsky , L. Sirota

The goodness-of-fit test for discrimination of two tail distribution using higher order statistics is proposed. The consistency of proposed test is proved for two different alternatives. We do not assume belonging the corresponding…

Statistics Theory · Mathematics 2017-02-21 Igor Vladimirovich Rodionov

In 2017-2020 Jordanova and co-authors investigate probabilities for p-outside values and determine them in many particular cases. They show that these probabilities are closely related to the concept for heavy tails. Tukey's boxplots are…

Methodology · Statistics 2024-10-22 Pavlina K. Jordanova

It is argued that there is a need for fat-tailed distributions that become thin in the extreme tail. A 3-parameter distribution is introduced that visually resembles the t-distribution and interpolates between the normal distribution and…

Statistics Theory · Mathematics 2022-02-08 Rose D Baker

We study bivariate stochastic recurrence equations with triangular matrix coefficients and we characterize the tail behavior of their stationary solutions ${\bf W} =(W_1,W_2)$. Recently it has been observed that $W_1,W_2$ may exhibit…

Probability · Mathematics 2022-05-04 Ewa Damek , Muneya Matsui

We estimate up to universal constants tails of symmetric and totally asymmetric 1-dimensional $\alpha$-stable distributions in terms of functions of the parameters of these distributions. In particular, for values of $\alpha$ close to $2$…

Probability · Mathematics 2020-11-30 Witold M. Bednorz , Rafał M. Łochowski , Rafał Martynek

We obtain concentration and large deviation for the sums of independent and identically distributed random variables with heavy-tailed distributions. Our concentration results are concerned with random variables whose distributions satisfy…

Probability · Mathematics 2022-07-27 Milad Bakhshizadeh , Arian Maleki , Victor H. de la Pena

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

The task of estimation of the tails of probability distributions having small samples seems to be still opened and almost unsolvable. The paper tries to make a step in filling this gap. In 2017 Jordanova et al. introduce six new…

Statistics Theory · Mathematics 2018-11-14 Pavlina Jordanova , Monika Peteva

This article introduces a non-parametric information-theoretic approach to inference about the tail of a continuous or a discrete distribution. Leveraging a new concept named tail profile -- a set of information-theoretic quantities…

Applications · Statistics 2025-03-19 Jialin Zhang , Zhiyi Zhang