Discover the concept of mean reversion, a financial theory that states asset prices tend to revert to their long-term average ...
Depending on how you use it, literally might mean one thing—or the complete opposite. Here's how to use the word without (literally?) losing your cool. Somewhere along the way, things changed. People ...
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 ...