Sentences with phrase «mean revert over»

The forward market for 1 - year implied volatility doesn't exist in any deep way, so the insurance company decides that it will have to take its chances, and assume that volatility will mean revert over longer periods of time.

The main reason to diversify is the fact that investments tend to mean revert over time.

The above 2.86 % gordon equation result takes today's valuations, mean reverts them over three decades, but assumes no loss due to selling underwater from your starting FIRE position.

Not exact matches

GaveKal Research recently published a piece that was highly critical of the idea that profit margins revert to the mean over time.

To help illustrate what's happening when stocks which appear to be high value on paper revert to their mean valuations over time, consider betting on a basketball game.

It means little to press and harry all over the pitch against United in order to defend the manager's reputation (and your own) if going forward you revert to your former lax approach and turn in performances a la West Ham, Zagreb and Olympiakos.

Failure to act would mean the city legally reverts to the old Board of Education and community school boards, which presided over the deterioration of public education in the five boroughs.

VIX futures indexes are mean reverting; funds benchmarked to them should not be expected to appreciate over extended periods of time.

This means that if fluctuates up and down, and although it might trend for a short period of time, it generally reverts to a long term mean over the long term.

Over the long - run performance of both companies and share prices generally revert to the mean.

The share of income that goes to profits and interest also tends to mean - revert over time, so humility is needed when:

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.

Heredity plays a role, but over time adult heights revert to the mean.

Mean - reversion is involved in value investing, in the sense that return on equity for firms tends to mean - revert over time.

Or perhaps a flood of new investment capital over the last decade or so has produced a lofty ending valuation, which has yet to mean revert, 12 and which would lead the regression to underestimate the true power of valuation for the low beta factor.

The key fact is that over timeframes above a year, both performance and prices tend to mean revert.

The precise advantage of rebalancing varies based on the targeted asset mix, but the strategy consistently beats portfolios that are not rebalanced for a simple reason: Investment results «revert to the mean» over long stretches.

Since the nature of a stock's valuation is to revert back to the mean over time, we should try to buy undervalued stocks and avoid overvalued ones.

The question on whether returns revert to the mean over time is probably one of the most fundamental ones to investing, for me.

However, we do know that over the long - term, valuation levels and interest rates have tended to revert to the mean and that we are far above that mean with respect to market valuations.

One thing that is for certain is that these oscillations revert to the mean over the long term, and can not be used to explain a natural secular warming trend, which is what the climate sceptics seem to be running on about recently.

Over time, the process tends to drift towards its long - term mean: such a process is called mean - reverting.

Yet, ENSO also reverts to a mean of zero over the long term, so that the secular forcing is what matter in the end.

Judith's point that AO and PO oscillations and multidecadal waves which may go in 60, 80 or 100 year cycles is completely ignored by saying that Natural variation should be ignored over a long time as it reverts to the mean.

The reason for this is that the barycentric oscillation reverts to a mean of zero as the positive and negative excursions balance out over the years.

WebHubTelescope: The beauty of the SOI is that it contributes no bias to observations, as by definition it reverts to a mean of zero over long time periods.

The beauty of the SOI is that it contributes no bias to observations, as by definition it reverts to a mean of zero over long time periods.

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).