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Parametric insurance has emerged as a practical way to cover risks that may be difficult to assess. By introducing a parameter that triggers compensation and allows the insurer to determine a payment without estimating the actual loss,…

应用统计 · 统计学 2023-01-20 Olivier Lopez , Maud Thomas

We investigate the tail asymptotic behavior of the sojourn time for a large class of centered Gaussian processes $X$, in both continuous- and discrete-time framework. All results obtained here are new for the discrete-time case. In the…

概率论 · 数学 2017-12-14 Krzysztof Dȩbicki , Enkelejd Hashorva , Xiaofan Peng , Zbigniew Michna

In this paper we establish the error rate of first order asymptotic approximation for the tail probability of sums of log-elliptical risks. Our approach is motivated by extreme value theory which allows us to impose only some weak…

概率论 · 数学 2014-12-12 D. Kortschak , E. Hashorva

In the world of modern financial theory, portfolio construction has traditionally operated under at least one of two central assumptions: the constraints are derived from a utility function and/or the multivariate probability distribution…

风险管理 · 定量金融 2023-07-19 Donald Geman , Hélyette Geman , Nassim Nicholas Taleb

Let (X,Y) be a bivariate elliptical random vector with associated random radius in the Gumbel max-domain of attraction. In this paper we obtain a second order asymptotic expansion of the joint survival probability P(X > x, Y> y) for x,y…

概率论 · 数学 2008-05-15 Enkelejd Hashorva

Let $X_1,\dots,X_n$ be independent normal random variables with $X_i\sim N(\mu_i,\sigma_i^2)$, and set $Z=\prod_{i=1}^n X_i$. We derive asymptotic approximations for the right tail probability $\mathbb{P}(Z>x)$ as $x\to\infty$. When at…

概率论 · 数学 2026-05-08 Džiugas Chvoinikov , Jonas Šiaulys

This paper contributes to answering a question that is of crucial importance in risk management and extreme value theory: How to select the threshold above which one assumes that the tail of a distribution follows a generalized Pareto…

统计方法学 · 统计学 2020-01-27 Ingo Hoffmann , Christoph J. Börner

Heavy-tailed probability distributions are extremely useful and play a crucial role in modeling different types of financial data sets. This study presents a two-pronged methodology. First, a mixture probability distribution is created by…

应用统计 · 统计学 2025-10-14 Pankaj Kumar , Vivek Vijay

Asymptotic expansions are derived for the tail distribution of the product of two correlated normal random variables with non-zero means and arbitrary variances, and more generally the sum of independent copies of such random variables.…

概率论 · 数学 2025-05-27 Robert E. Gaunt , Zixin Ye

The residual dependence index of bivariate Gaussian distributions is determined by the correlation coefficient. This tail index is of certain statistical importance when extremes and related rare events of bivariate samples with asymptotic…

概率论 · 数学 2013-05-14 Enkelejd Hashorva

In this paper, we consider a stochastic system described by a differential equation admitting a spatially varying random coefficient. The differential equation has been employed to model various static physics systems such as elastic…

概率论 · 数学 2013-09-18 Jingchen Liu , Xiang Zhou

We prove tail estimates for variables $\sum_i f(X_i)$, where $(X_i)_i$ is the trajectory of a random walk on an undirected graph (or, equivalently, a reversible Markov chain). The estimates are in terms of the maximum of the function $f$,…

概率论 · 数学 2007-12-25 Roy Wagner

In this paper we study the asymptotic decay of finite time ruin probabilities for an insurance company that faces heavy-tailed claims, uses predictable investment strategies and makes investments in risky assets whose prices evolve…

风险管理 · 定量金融 2008-12-02 Henrik Hult , Filip Lindskog

We tackle the modeling of threshold exceedances in asymptotically independent stochastic processes by constructions based on Laplace random fields. These are defined as Gaussian random fields scaled with a stochastic variable following an…

统计方法学 · 统计学 2016-03-09 Thomas Opitz

We derive in this article the asymptotic behavior as well as non-asymptotical estimates of tail of distribution for self-normalized sums of random variables (r.v.) under natural classical norming. We investigate also the case of…

概率论 · 数学 2017-10-10 E. Ostrovsky , L. Sirota

This paper develops a unified framework that integrates behavioral distortions into rational portfolio optimization by extracting implied probability weighting functions (PWFs) from optimal portfolios modeled under Gaussian and…

综合经济学 · 经济学 2025-07-08 Ayush Jha , Abootaleb Shirvani , Ali M. Jaffri , Svetlozar T. Rachev , Frank J. Fabozzi

We consider the tail distribution of the edge cover time of a specific non-Markov process, $\delta$ once-reinforced random walk, on finite connected graphs, whose transition probability is proportional to weights of edges. Here the weights…

概率论 · 数学 2025-05-09 Xiangyu Huang , Yong Liu , Kainan Xiang

In this paper, we propose a market model with returns assumed to follow a multivariate normal tempered stable distribution defined by a mixture of the multivariate normal distribution and the tempered stable subordinator. This distribution…

投资组合管理 · 定量金融 2020-09-22 Young Shin Kim

We study stochastic dominance between portfolios of independent and identically distributed (iid) extremely heavy-tailed (i.e., infinite-mean) Pareto random variables. With the notion of majorization order, we show that a more diversified…

投资组合管理 · 定量金融 2025-02-11 Yuyu Chen , Taizhong Hu , Ruodu Wang , Zhenfeng Zou

We investigate the tail behaviour of the steady state distribution of a stochastic recursion that generalises Lindley's recursion. This recursion arises in queuing systems with dependent interarrival and service times, and includes…

概率论 · 数学 2014-04-23 Maria Vlasiou , Zbigniew Palmowski