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Copula structure analysis

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Author Info
Claudia Klüppelberg
Gabriel Kuhn
Abstract

We extend the standard approach of correlation structure analysis for dimension reduction of high dimensional statistical data. The classical assumption of a linear model for the distribution of a random vector is replaced by the weaker assumption of a model for the copula. For elliptical copulas a correlation-like structure remains, but different margins and non-existence of moments are possible. After introducing the new concept and deriving some theoretical results we observe in a simulation study the performance of the estimators: the theoretical asymptotic behaviour of the statistics can be observed even for small sample sizes. Finally, we show our method at work for a financial data set and explain differences between our copula-based approach and the classical approach. Our new method yielear models also. Copyright Journal compilation (c) 2009 Royal Statistical Society.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9868.2009.00707.x
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Publisher Info
Article provided by Royal Statistical Society in its journal Journal of the Royal Statistical Society: Series B (Statistical Methodology).

Volume (Year): 71 (2009)
Issue (Month): 3 ()
Pages: 737-753
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Handle: RePEc:bla:jorssb:v:71:y:2009:i:3:p:737-753

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This page was last updated on 2009-12-19.


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