Discover the concept of mean reversion, a financial theory that states asset prices tend to revert to their long-term average ...

Mean reversion posits that asset prices and market returns eventually gravitate toward their historical averages. This theory, applicable across diverse financial instruments, offers traders insights ...

Autocorrelation, a statistical measure that evaluates the relationship between a variable’s past and present values, can provide insights into patterns and guide investment decisions. By analyzing how ...

Forbes contributors publish independent expert analyses and insights. I write about incisive investing advice. Financial planning is all about managing risk, and using mean reversion is a brilliant ...

To increase portfolio diversification, in this article, we will evaluate using another very well-known indicator in the trading landscape: Bollinger bands. This indicator is named after its inventor, ...

My December 2019 article, “Mean Reversion + Valuation = Opportunity,” cited cheap, out of favor assets including U.S. value and small caps, international, emerging markets, natural resources, MLPs and ...

Pairs trading and statistical arbitrage strategies represent a sophisticated suite of quantitative techniques designed to capitalise on pricing inefficiencies in financial markets. At their core, ...