Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
    big data and remote work
    Data Helps Speech-Language Pathologists Deliver Better Results
    6 Min Read
    data driven insights
    How Data-Driven Insights Are Addressing Gaps in Patient Communication and Equity
    8 Min Read
    pexels pavel danilyuk 8112119
    Data Analytics Is Revolutionizing Medical Credentialing
    8 Min Read
    data and seo
    Maximize SEO Success with Powerful Data Analytics Insights
    8 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Copulas and Wall Street
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Big Data > Data Mining > Copulas and Wall Street
Data MiningPredictive Analytics

Copulas and Wall Street

DavidMSmith
DavidMSmith
2 Min Read
SHARE

Wired Magazine has an article this week on the credit crisis: Recipe for Disaster: The Formula That Killed Wall Street. I mention it here as the first instance I know of where the phrase “Gaussian Copula” has been used in a mainstream-media article. David X Li’s Gaussian Copula function is detailed in a sidebar to the article along with concepts like “survival times”, “distribution functions”, and “correlation parameter”. Surprisingly, the article makes no mention of extreme value theory, but the concept is certainly captured well in this quote:People used the Gaussian copula model to convince themselves they didn’t have any…

Wired Magazine has an article this week on the credit crisis: Recipe for Disaster: The Formula That Killed Wall Street. I mention it here as the first instance I know of where the phrase "Gaussian Copula" has been used in a mainstream-media article. David X Li's Gaussian Copula function is detailed in a sidebar to the article along with concepts like "survival times", "distribution functions", and "correlation parameter". Surprisingly, the article makes no mention of extreme value theory, but the concept is certainly captured well in this quote:

People used the Gaussian copula model to convince themselves they didn't have any risk at all, when in fact they just didn't have any risk 99 percent of the time. The other 1 percent of the time they blew up.

Other articles have made a similar point about stuffing risk into the tails, but this is the first I've seen that describes its statistical underpinnings.

More Read

The Ascent of Ranking Algorithms
Why Google Chrome has a bad market share ?
Comparing Cloud Web Services
Understanding exponential growth as a fundamental driver of…
Data correlation: Used-car customers drop cell-phone service?
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

image fx (2)
Monitoring Data Without Turning into Big Brother
Big Data Exclusive
image fx (71)
The Power of AI for Personalization in Email
Artificial Intelligence Exclusive Marketing
image fx (67)
Improving LinkedIn Ad Strategies with Data Analytics
Analytics Big Data Exclusive Software
big data and remote work
Data Helps Speech-Language Pathologists Deliver Better Results
Analytics Big Data Exclusive

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

Data Scientist: Sexiest Job on the Planet

5 Min Read

Big Data Analytics: The Four Pillars

9 Min Read

Hospitals are increasingly relying on electronic tracking…

1 Min Read
Image
AnalyticsBig DataBusiness IntelligenceCloud ComputingDecision ManagementExclusiveHadoopITJobsPredictive AnalyticsSocial DataSoftwareWorkforce Data

Big Data Warning: There Will Be Many Job Casualties!

11 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots
ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?