A new stochastic dominance criterion for dependent random variables with applications

Fuente: arXiv
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Main Authors: Belzunce, F., Martínez-Riquelme, C.
Format: Preprint
Published: 2026
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author Belzunce, F.
Martínez-Riquelme, C.
author_facet Belzunce, F.
Martínez-Riquelme, C.
contents In this paper we develop a new tool for the comparison of paired data based on a new criterion of stochastic dominance that takes into account the dependence structure of the random variables under comparison. This new procedure provides a more detailed comparison of dependent random variables and overcomes some difficulties of standard techniques like Student's t and Wilcoxon-Mann-Whitney tests for non normal data. This tool provides an alternative to the usual stochastic dominance criterion which only considers the marginal distributions in the comparison. We show how this new tool can be fruitfully used for the comparison of paired asset returns.
format Preprint
id arxiv_https___arxiv_org_abs_2601_17511
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle A new stochastic dominance criterion for dependent random variables with applications
Belzunce, F.
Martínez-Riquelme, C.
Statistics Theory
60E15
In this paper we develop a new tool for the comparison of paired data based on a new criterion of stochastic dominance that takes into account the dependence structure of the random variables under comparison. This new procedure provides a more detailed comparison of dependent random variables and overcomes some difficulties of standard techniques like Student's t and Wilcoxon-Mann-Whitney tests for non normal data. This tool provides an alternative to the usual stochastic dominance criterion which only considers the marginal distributions in the comparison. We show how this new tool can be fruitfully used for the comparison of paired asset returns.
title A new stochastic dominance criterion for dependent random variables with applications
topic Statistics Theory
60E15
url https://arxiv.org/abs/2601.17511