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We introduce a method to estimate simultaneously the tail and the threshold parameters of an extreme value regression model. This standard model finds its use in finance to assess the effect of market variables on extreme loss distributions…

统计方法学 · 统计学 2023-04-17 Julien Hambuckers , Marie Kratz , Antoine Usseglio-Carleve

We compare our results on empirical analysis of financial data with simulations of two stochastic models of the dynamics of stock market prices. The two models are (i) the truncated L\'evy flight recently introduced by us and (ii) the…

统计力学 · 物理学 2015-06-25 Rosario N. Mantegna , H. Eugene Stanley

We introduce a new set of consistent measures of risks, in terms of the semi-invariants of pdf's, such that the centered moments and the cumulants of the portfolio distribution of returns that put more emphasis on the tail the…

统计力学 · 物理学 2008-12-10 Y. Malevergne , D. Sornette

This research develops a Bayesian framework for analyzing failure times using the Weibull distribution, addressing challenges in prior selection due to the lack of conjugate priors and multi-dimensional sufficient statistics. We propose an…

统计方法学 · 统计学 2025-06-16 Tobias Oketch , Mohammad Sepehrifar

Tail risk protection is in the focus of the financial industry and requires solid mathematical and statistical tools, especially when a trading strategy is derived. Recent hype driven by machine learning (ML) mechanisms has raised the…

风险管理 · 定量金融 2021-08-25 Bruno Spilak , Wolfgang Karl Härdle

We introduce a faithful representation of the heavy tail multivariate distribution of asset returns, as parsimonous as the Gaussian framework. Using calculation techniques of functional integration and Feynman diagrams borrowed from…

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

Flexible spatial models that allow transitions between tail dependence classes have recently appeared in the literature. However, inference for these models is computationally prohibitive, even in moderate dimensions, due to the necessity…

统计理论 · 数学 2020-12-03 Likun Zhang , Benjamin A. Shaby , Jennifer L. Wadsworth

Accurate forecasting of risk is the key to successful risk management techniques. Using the largest stock index futures from twelve European bourses, this paper presents VaR measures based on their unconditional and conditional…

风险管理 · 定量金融 2011-03-30 John Cotter

We propose a Bayesian non-parametric approach for modeling the distribution of multiple returns. In particular, we use an asymmetric dynamic conditional correlation (ADCC) model to estimate the time-varying correlations of financial returns…

投资组合管理 · 定量金融 2018-05-10 Audrone Virbickaite , M. Concepción Ausín , Pedro Galeano

In reliability and life data analysis, the Weibull distribution is widely used to accommodate more data characteristics by changing the values of the parameters. We frequently observe many zeros or close to zero data points in reliability…

统计方法学 · 统计学 2022-06-06 Sumangal Bhattacharya , Ishapathik Das , Muralidharan Kunnummal

Volatility clustering is a common phenomenon in financial time series. Typically, linear models can be used to describe the temporal autocorrelation of the (logarithmic) variance of returns. Considering the difficulty in estimating this…

计算金融 · 定量金融 2022-10-21 Di Zhang , Qiang Niu , Youzhou Zhou

Identifying risk spillovers in financial markets is of great importance for assessing systemic risk and portfolio management. Granger causality in tail (or in risk) tests whether past extreme events of a time series help predicting future…

风险管理 · 定量金融 2021-05-07 Piero Mazzarisi , Silvia Zaoli , Carlo Campajola , Fabrizio Lillo

We introduce a new multivariate circular linear distribution suitable for modeling direction and speed in (multiple) animal movement data. To properly account for specific data features, such as heterogeneity and time dependence, a hidden…

应用统计 · 统计学 2016-06-28 Gianluca Mastrantonio

We introduce a statistical model for operational losses based on heavy-tailed distributions and bipartite graphs, which captures the event type and business line structure of operational risk data. The model explicitly takes into account…

风险管理 · 定量金融 2019-02-11 Oliver Kley , Claudia Klüppelberg , Sandra Paterlini

A major issue of extreme value analysis is the determination of the shape parameter $\xi$ common to Generalized Extreme Value (GEV) and Generalized Pareto (GP) distributions, which drives the tail behavior, and is of major impact on the…

统计方法学 · 统计学 2018-06-19 Nicolas Bousquet , Merlin Keller

Generalized autoregressive conditionally heteroskedastic (GARCH) processes are widely used for modelling features commonly found in observed financial returns. The extremal properties of these processes are of considerable interest for…

统计计算 · 统计学 2019-08-20 Fabrizio Laurini , Paul Fearnhead , Jonathan A. Tawn

This research addresses accurate option pricing by employing models beyond the traditional Black-Scholes framework. While Black-Scholes provides a closed-form solution, it is limited by assumptions of constant volatility, no dividends, and…

计算金融 · 定量金融 2026-04-08 Karmanpartap Singh Sidhu , Pranshi Saxena

Stochastic variational inference algorithms are derived for fitting various heteroskedastic time series models. We examine Gaussian, t, and skew-t response GARCH models and fit these using Gaussian variational approximating densities. We…

统计计算 · 统计学 2023-08-30 Hanwen Xuan , Luca Maestrini , Feng Chen , Clara Grazian

The hybrid Monte Carlo (HMC) algorithm is used for Bayesian analysis of the generalized autoregressive conditional heteroscedasticity (GARCH) model. The HMC algorithm is one of Markov chain Monte Carlo (MCMC) algorithms and it updates all…

计算物理 · 物理学 2008-12-09 Tetsuya Takaishi

In this paper we propose a problem-driven scenario generation approach to the single-period portfolio selection problem which use tail risk measures such as conditional value-at-risk. Tail risk measures are useful for quantifying potential…

风险管理 · 定量金融 2019-11-14 Jamie Fairbrother , Amanda Turner , Stein Wallace
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