copulas

Example:The copula function was used to model the dependence between stock and bond returns.

Definition:A specific type of function used in statistics to model the dependence structure between random variables.

Example:The copula function allowed for the construction of a joint distribution between two asset returns.

Definition:The combined probability distribution of two or more random variables.

Example:Dependence modeling using copulas provided a more accurate representation of the risk factors.

Definition:The process of modeling the interdependencies between variables in statistical analysis.

Example:Risk assessment in finance benefited from the use of copulas to model market risks.

Definition:The process of evaluating the likelihood and impact of potential risks.