Sentences with phrase «mean revert because»
Worse, we should expect this revaluation alpha to mean revert because strong recent performance frequently leads to poor subsequent performance, and vice versa.
https://www.researchaffiliates.com/ Not exact matches
By ignoring the strong leadership roles that women like Deborah and Phoebe and Priscilla played in the Bible (what McKnight calls WDWD passages) because of what Paul said to specific churches about silencing means reverting to our fallen state rather than our new creation state.
It's useful because earnings tend to be volatile and mean reverting.
When equity prices revert back to the mean, they get burned because huge portions of their portfolios drop and they've sold off the portion that would bounce back.
Because earnings measured over shorter horizons such as one year are extremely volatile and mean reverting, the ratio of prices to current earnings does not predict future long - term returns.
Austria's 97 Years of Loss This article by John Authers stresses how difficult it is to time the market because the mean (to which the argument goes that everything will revert) itself inflates, rendering the data at the time of the bubble much more confusing that in hindsight.
It makes sense to skip the last month when you are applying momentum to stocks because individual stocks can overreact to news and then mean revert.
The investor return gap persists, despite strong evidence that factor performance is mean reverting, because investors use the manager selection process for alpha timing.
They can't arbitrate the debate between bulls and bears because valuation metrics don't reliably mean - revert.
Because the value premium is mean - reverting, short - term trend - chasing behavior on the part of the average value mutual fund investor more than offsets the funds» outperformance.
That's because when stocks have high multiples and tight spreads, there's little upside in holding them (future return has been brought forward to today) but there's lots of downside due to their equity valuations tendency to mean revert.
Anyway, away from that specific example, the question of mean - reverting returns is incredibly relevant to us, because if it does not hold some «value» investments become bunk.
People are putting money into XIV because they «know» that implied volatility always mean - reverts, and so they will make easy money after a volatility spike.
New contributions should mostly feed investments that have been doing less well, because investments tend to mean - revert.
Barnes, it's the control knob because its effect is stable and cumulative while the other effects vary unpredictably, cause excursions about 0.1 °C up and down, and have a tendency to revert to the mean after a couple decades.
It reverts to the mean because the SOI is simply the difference between the sea - level barometric pressures at two remotely located positions in the south pacific..
So, your proposition is, that because physics dictates that the DGP governing the record over the past 8000 years must be mean reverting (here we agree), the DGP governing our instrumental record, also must be mean reverting in absence of exogenous forcings (here I believe we disagree).
Out of band pairing (except NFC pairing on Android) doesn't work meaning in most cases you have to revert to insecure pairing methods because your BLE device has no user interface.