Signature-based validation of real-world economic scenarios

Fuente: arXiv
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Autores principales: Andrès, Hervé, Boumezoued, Alexandre, Jourdain, Benjamin
Formato: Preprint
Publicado: 2022
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author Andrès, Hervé
Boumezoued, Alexandre
Jourdain, Benjamin
author_facet Andrès, Hervé
Boumezoued, Alexandre
Jourdain, Benjamin
contents Motivated by insurance applications, we propose a new approach for the validation of real-world economic scenarios. This approach is based on the statistical test developed by Chevyrev and Oberhauser (2022) and relies on the notions of signature and maximum mean distance. This test allows to check whether two samples of stochastic processes paths come from the same distribution. Our contribution is to apply this test to a variety of stochastic processes exhibiting different pathwise properties (H{ö}lder regularity, autocorrelation, regime switches) and which are relevant for the modelling of stock prices and stock volatility as well as of inflation in view of actuarial applications.
format Preprint
id arxiv_https___arxiv_org_abs_2208_07251
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle Signature-based validation of real-world economic scenarios
Andrès, Hervé
Boumezoued, Alexandre
Jourdain, Benjamin
Statistical Finance
Probability
Statistics Theory
Motivated by insurance applications, we propose a new approach for the validation of real-world economic scenarios. This approach is based on the statistical test developed by Chevyrev and Oberhauser (2022) and relies on the notions of signature and maximum mean distance. This test allows to check whether two samples of stochastic processes paths come from the same distribution. Our contribution is to apply this test to a variety of stochastic processes exhibiting different pathwise properties (H{ö}lder regularity, autocorrelation, regime switches) and which are relevant for the modelling of stock prices and stock volatility as well as of inflation in view of actuarial applications.
title Signature-based validation of real-world economic scenarios
topic Statistical Finance
Probability
Statistics Theory
url https://arxiv.org/abs/2208.07251