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This paper investigates the second order asymptotic expansion for tail probabilities of discounted aggregate claims in continuous-time renewal risk models with constant interest force. Concretely, two types of continuous-time renewal risk…

应用统计 · 统计学 2025-01-07 Bingzhen Genga , Shijie Wanga , Yang Yang

Based on a faithful representation of the heavy tail multivariate distribution of asset returns introduced previously (Sornette et al., 1998, 1999) that we extend to the case of asymmetric return distributions, we generalize the return-risk…

统计力学 · 物理学 2008-12-02 J. V. Andersen , D. Sornette

This paper studies the joint tail asymptotics of extrema of the multi-dimensional Gaussian process over random intervals defined as $$ P(u):=\mathbb{P}\left\{\cap_{i=1}^n \left(\sup_{t\in[0,\mathcal{T}_i]} ( X_{i}(t) +c_i t )>a_i u…

概率论 · 数学 2020-09-28 Lanpeng Ji , Xiaofan Peng

In previous work Majda and McLaughlin computed explicit expressions for the $2N$th moments of a passive scalar advected by a linear shear flow in the form of an integral over ${\bf R}^N$. In this paper we first compute the asymptotics of…

流体动力学 · 物理学 2007-05-23 J. C. Bronski , R. M. McLaughlin

We model systemic risk using a common factor that accounts for market-wide shocks and a tail dependence factor that accounts for linkages among extreme stock returns. Specifically, our theoretical model allows for firm-specific impacts of…

风险管理 · 定量金融 2022-02-07 Wan-Chien Chiu , Juan Ignacio Peña , Chih-Wei Wang

We study tail behaviour of the distribution of the area under the positive excursion of a random walk which has negative drift and heavy-tailed increments. We determine the asymptotics for tail probabilities for the area.

概率论 · 数学 2019-07-03 Denis Denisov , Elena Perfilev , Vitali Wachtel

Analysing dependent risks is an important task for insurance companies. A dependency is reflected in the fact that information about one random variable provides information about the likely distribution of values of another random…

应用统计 · 统计学 2021-03-22 Sen Hu , Adrian O'Hagan

Reliable calculations of financial risk require that the fat-tailed nature of prices changes is included in risk measures. To this end, a non-Gaussian approach to financial risk management is presented, modeling the power-law tails of the…

物理与社会 · 物理学 2009-12-01 G. Bormetti , E. Cisana , G. Montagna , O. Nicrosini

We propose a credit risk model for portfolios composed of green and brown loans, extending the ASRF framework via a two-factor copula structure. Systematic risk is modeled using potentially skewed distributions, allowing for asymmetric…

风险管理 · 定量金融 2025-06-17 Alessandro Ramponi , Sergio Scarlatti

We consider a model for multivariate data with heavy-tailed marginal distributions and a Gaussian dependence structure. The different marginals in the model are allowed to have non-identical tail behavior in contrast to most popular…

统计方法学 · 统计学 2023-05-23 Bikramjit Das

In this paper, we study large losses arising from defaults of a credit portfolio. We assume that the portfolio dependence structure is modelled by the Archimedean copula family as opposed to the widely used Gaussian copula. The resulting…

风险管理 · 定量金融 2024-11-12 Hengxin Cui , Ken Seng Tan , Fan Yang

For a centered $d$-dimensional Gaussian random vector $\xi =(\xi_1,\ldots,\xi_d)$ and a homogeneous function $h:R^d\to R$ we derive asymptotic expansions for the tail of the Gaussian chaos $h(\xi)$ given the function $h$ is sufficiently…

概率论 · 数学 2015-02-18 Enkelejd Hashorva , Dmitry Korshunov , Vladimir I. Piterbarg

The benefits of diversifying risks are difficult to estimate quantitatively because of the uncertainties in the dependence structure between the risks. Also, the modelling of multidimensional dependencies is a non-trivial task. This paper…

风险管理 · 定量金融 2011-11-11 Jean-Philippe Bruneton

Let $X(t), t\in \mathcal{T}$ be a centered Gaussian random field with variance function $\sigma^2(\cdot)$ that attains its maximum at the unique point $t_0\in \mathcal{T}$, and let $M(\mathcal{T}):=\sup_{t\in \mathcal{T}} X(t)$. For…

概率论 · 数学 2016-05-31 Krzyztof Dębicki , Enkelejd Hashorva , Peng Liu

Recently, the concept of tail dependence has been discussed in financial applications related to market or credit risk. The multivariate extreme value theory is a proper tool to measure and model dependence, for example, of large loss…

应用统计 · 统计学 2011-09-27 Marta Ferreira

We propose an analytical approach to the computation of tail probabilities of compound distributions whose individual components have heavy tails. Our approach is based on the contour integration method, and gives rise to a representation…

计算金融 · 定量金融 2017-10-04 Igor Halperin

Extreme events and the heavy tail distributions driven by them are ubiquitous in various scientific, engineering and financial research. They are typically associated with stochastic instability caused by hidden unresolved processes.…

概率论 · 数学 2019-05-22 Andrew J. Majda , Xin T. Tong

We compute the tail asymptotics of the product of a beta random variable and a generalized gamma random variable which are independent and have general parameters. A special case of these asymptotics were proved and used in a recent work of…

概率论 · 数学 2015-09-10 Jim Pitman , Miklos Z. Racz

We consider the tail behavior of random variables $R$ which are solutions of the distributional equation $R\stackrel{d}{=}Q+MR$, where $(Q,M)$ is independent of $R$ and $|M|\le 1$. Goldie and Gr\"{u}bel showed that the tails of $R$ are no…

概率论 · 数学 2010-02-08 Paweł Hitczenko , Jacek Wesołowski

The quantitative analysis of financial time series often reveals two distinct features that standard Gaussian frameworks fail to capture: heavy-tailed marginal distributions and the phenomenon of extreme co-movements.While extreme value…

统计理论 · 数学 2026-05-14 Debanjana Datta , Diganta Mukherjee