New method predicts simultaneous market crashes without complex assumptions.
The article introduces a new way to predict when multiple risky assets will have big price changes. Instead of using a specific formula, this method looks at extreme values to estimate the chances of big movements happening together. This approach is helpful because it doesn't need a fixed structure for how the assets are related, which can lead to mistakes. It also works well when there isn't much data available and can handle many assets at once without getting too complicated.