Monte Carlo estimation of value-at-risk, conditional value-at-risk and their sensitivities

L. Jeff Hong, Guangwu Liu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

19 Scopus citations

Abstract

Value-at-risk and conditional value at risk are two widely used risk measures, employed in the financial industry for risk management purposes. This tutorial discusses Monte Carlo methods for estimating value-at-risk, conditional value-at-risk and their sensitivities. By relating the mathematical representation of value-at-risk to that of conditional value-at-risk, it provides a unified view of simulation methodologies for both risk measures and their sensitivities.

Original languageEnglish (US)
Title of host publicationProceedings of the 2011 Winter Simulation Conference, WSC 2011
Pages95-107
Number of pages13
DOIs
StatePublished - 2011
Externally publishedYes
Event2011 Winter Simulation Conference, WSC 2011 - Phoenix, AZ, United States
Duration: Dec 11 2011Dec 14 2011

Publication series

NameProceedings - Winter Simulation Conference
ISSN (Print)0891-7736

Other

Other2011 Winter Simulation Conference, WSC 2011
Country/TerritoryUnited States
CityPhoenix, AZ
Period12/11/1112/14/11

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