Modifying copulas for improved dependence modelling

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Le Roux, Colette
De Waal, Alta

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Volume Title

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CEUR Workshop Proceedings

Abstract

In 2007 and 2008, underestimation of correlations and risks, as well as the misuse of dependence models, lead to the financial crisis. This highlighted the need to improve dependence modelling through both the correlation parameter and choice of model used. Copulas are useful for modelling dependence patterns in multivariate data, as well as prediction in regression analysis.

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Keywords

Copula, Copula processes, Gaussian processes, Vine copulas, Bayesian methods

Sustainable Development Goals

Citation

Le Roux, C. & De Waal, A. 2019, 'Modifying copulas for improved dependence modelling', CEUR Workshop Proceedings, vol. 2540, pp. 1-3.