paper

Some Remarks on T-copulas

arXiv:1005.4456

Abstract

We examine three methods of constructing correlated Student- random variables. Our motivation arises from simulations that utilise heavy-tailed distributions for the purposes of stress testing and economic capital calculations for financial institutions. We make several observations regarding the suitability of the three methods for this purpose.

15 pages, 7 figures. Submitted to QMF2010