Monge-Kantorovich superquantiles and expected shortfalls with applications to multivariate risk measurements

Fuente: arXiv
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Main Authors: Bercu, Bernard, Bigot, Jeremie, Thurin, Gauthier
Format: Preprint
Published: 2023
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author Bercu, Bernard
Bigot, Jeremie
Thurin, Gauthier
author_facet Bercu, Bernard
Bigot, Jeremie
Thurin, Gauthier
contents We propose center-outward superquantile and expected shortfall functions, with applications to multivariate risk measurements, extending the standard notion of value at risk and conditional value at risk from the real line to $\mathbb{R}^d$. Our new concepts are built upon the recent definition of Monge-Kantorovich quantiles based on the theory of optimal transport, and they provide a natural way to characterize multivariate tail probabilities and central areas of point clouds. They preserve the univariate interpretation of a typical observation that lies beyond or ahead a quantile, but in a meaningful multivariate way. We show that they characterize random vectors and their convergence in distribution, which underlines their importance. Our new concepts are illustrated on both simulated and real datasets.
format Preprint
id arxiv_https___arxiv_org_abs_2307_01584
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Monge-Kantorovich superquantiles and expected shortfalls with applications to multivariate risk measurements
Bercu, Bernard
Bigot, Jeremie
Thurin, Gauthier
Statistics Theory
We propose center-outward superquantile and expected shortfall functions, with applications to multivariate risk measurements, extending the standard notion of value at risk and conditional value at risk from the real line to $\mathbb{R}^d$. Our new concepts are built upon the recent definition of Monge-Kantorovich quantiles based on the theory of optimal transport, and they provide a natural way to characterize multivariate tail probabilities and central areas of point clouds. They preserve the univariate interpretation of a typical observation that lies beyond or ahead a quantile, but in a meaningful multivariate way. We show that they characterize random vectors and their convergence in distribution, which underlines their importance. Our new concepts are illustrated on both simulated and real datasets.
title Monge-Kantorovich superquantiles and expected shortfalls with applications to multivariate risk measurements
topic Statistics Theory
url https://arxiv.org/abs/2307.01584