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  2. Mean reversion (finance) - Wikipedia

    en.wikipedia.org/wiki/Mean_reversion_(finance)

    Mean reversion is a financial term for the assumption that an asset's price will tend to converge to the average price over time. [1] [2]Using mean reversion as a timing strategy involves both the identification of the trading range for a security and the computation of the average price using quantitative methods.

  3. Vasicek model - Wikipedia

    en.wikipedia.org/wiki/Vasicek_model

    Vasicek's model was the first one to capture mean reversion, an essential characteristic of the interest rate that sets it apart from other financial prices. Thus, as opposed to stock prices for instance, interest rates cannot rise indefinitely. This is because at very high levels they would hamper economic activity, prompting a decrease in ...

  4. DBLCI Mean Reversion Index - Wikipedia

    en.wikipedia.org/wiki/DBLCI_Mean_Reversion_Index

    The DBLCI-Mean Reversion is the only index which dynamically changes its weights according to whether a commodity is considered cheap or expensive. When all the commodities are within 5% of their five-year averages, the weights will automatically revert to the weights of the base index, the DBLCI.

  5. Understanding Reversion to the Mean - AOL

    www.aol.com/news/understanding-reversion-mean...

    Continue reading → The post Understanding Reversion to the Mean appeared first on SmartAsset Blog. Will housing prices naturally come back down, and the price of blockchain tokens stabilize?

  6. Statistical arbitrage - Wikipedia

    en.wikipedia.org/wiki/Statistical_arbitrage

    In finance, statistical arbitrage (often abbreviated as Stat Arb or StatArb) is a class of short-term financial trading strategies that employ mean reversion models involving broadly diversified portfolios of securities (hundreds to thousands) held for short periods of time (generally seconds to days). These strategies are supported by ...

  7. Cox–Ingersoll–Ross model - Wikipedia

    en.wikipedia.org/wiki/Cox–Ingersoll–Ross_model

    The parameter corresponds to the speed of adjustment to the mean , and to volatility. The drift factor, a ( b − r t ) {\displaystyle a(b-r_{t})} , is exactly the same as in the Vasicek model. It ensures mean reversion of the interest rate towards the long run value b {\displaystyle b} , with speed of adjustment governed by the strictly ...

  8. Mortgage and refinance rates for Feb. 14, 2025: Average rates ...

    www.aol.com/finance/mortgage-and-refinance-rates...

    See today's average mortgage rates for a 30-year fixed mortgage, 15-year fixed, jumbo loans, refinance rates and more — including up-to-date rate news.

  9. Regression toward the mean - Wikipedia

    en.wikipedia.org/wiki/Regression_toward_the_mean

    Galton's experimental setup "Standard eugenics scheme of descent" – early application of Galton's insight [1]. In statistics, regression toward the mean (also called regression to the mean, reversion to the mean, and reversion to mediocrity) is the phenomenon where if one sample of a random variable is extreme, the next sampling of the same random variable is likely to be closer to its mean.