Measures of financial risks and market crashes

The problem of particular importance in financial risk management is forecasting the magnitude of a market crash. We address this problem using statistical inference on heavy–tailed distributions. Our approach involves accurate estimates of the tail index, extreme quantiles, and the mean excess func...

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Datum:2007
1. Verfasser: Novak, S.Y
Format: Artikel
Sprache:English
Veröffentlicht: Інститут математики НАН України 2007
Online Zugang:https://nasplib.isofts.kiev.ua/handle/123456789/4488
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Назва журналу:Digital Library of Periodicals of National Academy of Sciences of Ukraine
Zitieren:Measures of financial risks and market crashes / S.Y.Novak // Theory of Stochastic Processes. — 2007. — Т. 13 (29), № 1-2. — С. 182-193. — Бібліогр.: 24 назв.— англ.

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Digital Library of Periodicals of National Academy of Sciences of Ukraine
id nasplib_isofts_kiev_ua-123456789-4488
record_format dspace
spelling Novak, S.Y
2009-11-19T10:20:43Z
2009-11-19T10:20:43Z
2007
Measures of financial risks and market crashes / S.Y.Novak // Theory of Stochastic Processes. — 2007. — Т. 13 (29), № 1-2. — С. 182-193. — Бібліогр.: 24 назв.— англ.
0321-3900
https://nasplib.isofts.kiev.ua/handle/123456789/4488
The problem of particular importance in financial risk management is forecasting the magnitude of a market crash. We address this problem using statistical inference on heavy–tailed distributions. Our approach involves accurate estimates of the tail index, extreme quantiles, and the mean excess function. We apply our approach to real financial data, and argue that the September 2001 crash had two components: one (systematic) could be predicted, while another (non–systematic) was due to the shock of the event. We present empirical evidence that the degree of tail heaviness can change considerably as one switches to less frequent data. This fact has important implications to the problem of estimating financial risks.
en
Інститут математики НАН України
Measures of financial risks and market crashes
Article
published earlier
institution Digital Library of Periodicals of National Academy of Sciences of Ukraine
collection DSpace DC
title Measures of financial risks and market crashes
spellingShingle Measures of financial risks and market crashes
Novak, S.Y
title_short Measures of financial risks and market crashes
title_full Measures of financial risks and market crashes
title_fullStr Measures of financial risks and market crashes
title_full_unstemmed Measures of financial risks and market crashes
title_sort measures of financial risks and market crashes
author Novak, S.Y
author_facet Novak, S.Y
publishDate 2007
language English
publisher Інститут математики НАН України
format Article
description The problem of particular importance in financial risk management is forecasting the magnitude of a market crash. We address this problem using statistical inference on heavy–tailed distributions. Our approach involves accurate estimates of the tail index, extreme quantiles, and the mean excess function. We apply our approach to real financial data, and argue that the September 2001 crash had two components: one (systematic) could be predicted, while another (non–systematic) was due to the shock of the event. We present empirical evidence that the degree of tail heaviness can change considerably as one switches to less frequent data. This fact has important implications to the problem of estimating financial risks.
issn 0321-3900
url https://nasplib.isofts.kiev.ua/handle/123456789/4488
citation_txt Measures of financial risks and market crashes / S.Y.Novak // Theory of Stochastic Processes. — 2007. — Т. 13 (29), № 1-2. — С. 182-193. — Бібліогр.: 24 назв.— англ.
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