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Bibliographic Details
Main Authors: del Castillo, Joan, Puig, Pedro
Format: Preprint
Published: 2025
Subjects:
Online Access:https://arxiv.org/abs/2504.01390
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author del Castillo, Joan
Puig, Pedro
author_facet del Castillo, Joan
Puig, Pedro
contents This article presents methods for estimating extreme probabilities, beyond the range of the observations. These methods are model-free and applicable to almost any sample size. They are grounded in order statistics theory and have a wide range of applications, as they simply require the assumption of a finite expectation. Even in cases when a particular risk model exists, the new methods provide clarity, security and simplicity. The methodology is applicable to the behavior of financial markets, and the results may be compared to those provided by extreme value theory.
format Preprint
id arxiv_https___arxiv_org_abs_2504_01390
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Evaluating probabilities without model risk
del Castillo, Joan
Puig, Pedro
Applications
This article presents methods for estimating extreme probabilities, beyond the range of the observations. These methods are model-free and applicable to almost any sample size. They are grounded in order statistics theory and have a wide range of applications, as they simply require the assumption of a finite expectation. Even in cases when a particular risk model exists, the new methods provide clarity, security and simplicity. The methodology is applicable to the behavior of financial markets, and the results may be compared to those provided by extreme value theory.
title Evaluating probabilities without model risk
topic Applications
url https://arxiv.org/abs/2504.01390