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"Mean reversion is a mathematical concept sometimes used for stock investing, but it can be applied to other assets. In general terms, the essence of the concept is the assumption that both a stock's high and low prices are temporary and that a stock's price will tend to move to the average price over time."

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Mean reversion effect is harder to find and trade, compared to momentum, but there is research that supports presence of mean reversion in many time series: stocks, stock indices, futures, bonds and ETFs.

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