Mean Reverting – What Is Mean Reversion? Mean reverting, reverting to the mean, or mean reversion are all phrases used to describe a statistical theory that is employed in finance. It implies that asset price volatility and historical returns will ultimately revert to the dataset’s long-run mean or average level. […]
Statistics
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What Is a Trimmed Mean? A trimmed mean is a form of averaging in which a specified fraction of the greatest and smallest values are removed before computing the mean. The trimmed mean is calculated after deleting the given outlier data using a conventional arithmetic averaging algorithm. The use of […]