On multivariate contribution measures of systemic risk with applications in cryptocurrency market

Fuente: arXiv
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Main Authors: Wen, Limin, Li, Junxue, Pu, Tong, Zhang, Yiying
Format: Preprint
Published: 2024
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author Wen, Limin
Li, Junxue
Pu, Tong
Zhang, Yiying
author_facet Wen, Limin
Li, Junxue
Pu, Tong
Zhang, Yiying
contents Conditional risk measures and their associated risk contribution measures are commonly employed in finance and actuarial science for evaluating systemic risk and quantifying the effects of risk interactions. This paper introduces various types of contribution ratio measures based on the MCoVaR, MCoES, and MMME studied in Ortega-Jiménez et al. (2021) and Das & Fasen-Hartmann (2018) to assess the relative effects of a single risk when other risks in a group are in distress. The properties of these contribution risk measures are examined, and sufficient conditions for comparing these measures between two sets of random vectors are established using univariate and multivariate stochastic orders and statistically dependent notions. Numerical examples are presented to validate these conditions. Finally, a real dataset from the cryptocurrency market is used to analyze the spillover effects through our proposed contribution measures.
format Preprint
id arxiv_https___arxiv_org_abs_2411_13384
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle On multivariate contribution measures of systemic risk with applications in cryptocurrency market
Wen, Limin
Li, Junxue
Pu, Tong
Zhang, Yiying
Risk Management
Conditional risk measures and their associated risk contribution measures are commonly employed in finance and actuarial science for evaluating systemic risk and quantifying the effects of risk interactions. This paper introduces various types of contribution ratio measures based on the MCoVaR, MCoES, and MMME studied in Ortega-Jiménez et al. (2021) and Das & Fasen-Hartmann (2018) to assess the relative effects of a single risk when other risks in a group are in distress. The properties of these contribution risk measures are examined, and sufficient conditions for comparing these measures between two sets of random vectors are established using univariate and multivariate stochastic orders and statistically dependent notions. Numerical examples are presented to validate these conditions. Finally, a real dataset from the cryptocurrency market is used to analyze the spillover effects through our proposed contribution measures.
title On multivariate contribution measures of systemic risk with applications in cryptocurrency market
topic Risk Management
url https://arxiv.org/abs/2411.13384