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. 2021 Jun 23;59(3):1155–1171. doi: 10.1007/s10614-021-10123-8

Table 2.

Back-testing results (99% c.l.) of the conventional delta-normal models

Total period 20-day CDNVaR 125-day CDNVaR 250-day CDNVaR 500-day CDNVaR
(a) Descriptive statistics of the CDNVaR versions
Average VaR  − 2.43%  − 2.57%  − 2.62%  − 2.65%
SD 1.65% 1.38% 1.21% 1.01%
Min  − 14.23%  − 8.52%  − 6.69%  − 5.20%
Max  − 0.48%  − 0.93%  − 0.97%  − 1.35%
Violations 134 120 129 130
Average value of deviations when an overshooting is reported  − 0.69%  − 0.97%  − 0.99%  − 1.16%
Year 20-day CDNVaR 125-day CDNVaR 250-day CDNVaR 500-day CDNVaR
(b) Backtesting results per trading year
2000 4 6 5 4
2001 3 2 3 3
2002 4 5 5 5
2003 2 0 0 1
2004 6 0 0 0
2005 4 2 1 0
2006 4 5 4 4
2007 10 12 15 15
2008 8 12 21 28
2009 6 0 0 2
2010 8 7 6 0
2011 7 10 10 9
2012 5 3 1 0
2013 9 3 2 0
2014 11 10 10 7
2015 6 7 7 9
2016 2 2 4 5
2017 5 4 3 0
2018 10 16 15 20
2019 8 3 4 5
2020 12 11 13 13
Sum of overshootings 123 107 116 118
More than 4 overshootings per year 14 11 10 10

Part (b) reports the backtesting results. Italics indicate the years in which the “4 overshootings rule” is violated