Tomorrow, I was invited to give a (brief) talk at our working group, at France Stratégies, on (non) diversification of extreme risks. Slides are online, and results are related to recent papers by Paul Embrechts and Ruodu Wang. More precisely, here are some references But first, before discussing large risks, I need to get back (quickly) on the Pareto distribution, To visualize Pareto tails, one can consider the Pareto plot. If points are on a straight line with (negative) slope , then observations are … Continue …