• DocumentCode
    2813341
  • Title

    VaR Model Based on Fat-Tail Distribution of Extreme Value Theory with Its Application in Chinese Foreign Exchange Market

  • Author

    Zhang Shaozong ; Yang Jie

  • Author_Institution
    Sch. of Math. Sci., Yunnan Normal Univ., Kunming, China
  • fYear
    2009
  • fDate
    19-20 Dec. 2009
  • Firstpage
    1
  • Lastpage
    5
  • Abstract
    In this paper, we study the statistical features of Chinese foreign exchange market data. Furthermore, we mainly fit the sample tail data employed generalized pareto distribution (GPD), when building VaR model based on fat-tail distribution of extreme value theory (EVT), we show that the model can be appropriate to be applied to Chinese foreign exchange market data. We have also proposed a procedure to better estimate the parameters in the GPD.
  • Keywords
    Pareto distribution; foreign exchange trading; parameter estimation; risk analysis; statistical analysis; Chinese foreign exchange market; VaR model; extreme value theory; fat-tail distribution; generalized Pareto distribution; parameter estimation; statistical features; Area measurement; Gaussian distribution; Mathematical model; Parameter estimation; Portfolios; Probability distribution; Random variables; Reactive power; Risk analysis; Risk management;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Information Engineering and Computer Science, 2009. ICIECS 2009. International Conference on
  • Conference_Location
    Wuhan
  • Print_ISBN
    978-1-4244-4994-1
  • Type

    conf

  • DOI
    10.1109/ICIECS.2009.5363130
  • Filename
    5363130