Phrases with «mean reversion»

Mean reversion is a financial concept that suggests that things tend to return to their average or usual levels over time. For example, if a stock price is unusually high or low, it is likely to eventually move back towards its average price. This is based on the idea that extreme or abnormal conditions are temporary and will correct themselves in the long run. Full definition

Related phrases

Sentences with «mean reversion»

  • Specifically, they explore implications of mean reversion of the real price of gold. (cxoadvisory.com)
  • Whereas the industry continues to debate the efficacy of Shiller P / E reversion, we at Research Affiliates firmly believe in mean reversion in asset prices (Brightman, Masturzo, and Treussard, 2014), although we acknowledge it to be tricky to accurately forecast. (researchaffiliates.com)
  • As to why, my theory is that it's because of the popularity of mean reversion strategies and quantified trading. (alvarezquanttrading.com)
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