CVaR sensitivity with respect to tail thickness

B-Tier
Journal: Journal of Banking & Finance
Year: 2013
Volume: 37
Issue: 3
Pages: 977-988

Authors (3)

Stoyanov, Stoyan V. (not in RePEc) Rachev, Svetlozar T. (not in RePEc) Fabozzi, Frank J. (Groupe EDHEC (École de Hautes ...)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The sensitivity of a risk measure with respect to the parameters of the hypothesized distribution is a useful tool in investigating the impact of marginal rebalancing decisions on the portfolio return distribution and also in the analysis of the asymptotic variability of the risk estimator. We calculate the relative importance of the conditional value-at-risk (CVaR) sensitivity with respect to tail thickness and scale of the portfolio return distribution in the case of regularly varying tails and in the case of exponential and faster-than-exponential decay. We discuss the implications for asset return modeling and the asymptotic variability of the risk estimator.

Technical Details

RePEc Handle
repec:eee:jbfina:v:37:y:2013:i:3:p:977-988
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25