Asymmetrical Distribution

Filed Under »
Dictionary Says

Definition of 'Asymmetrical Distribution'

A situation in which the values of variables occur at irregular frequencies and the mean, median and mode occur at different points. An asymmetric distribution is said to exhibit skewness. In contrast, a symmetric or normal distribution, when depicted on a graph, is shaped like a bell curve and the two sides of the graph are symmetrical.
Investopedia Says

Investopedia explains 'Asymmetrical Distribution'

Investment return data commonly has an asymmetric distribution. This occurs because investment performance is often skewed since investments experience periods of abnormally high and abnormally low performance, and because sample investment performance data are always changing. Investors should consider all of these factors when attempting to gauge investment volatility by using the standard deviation.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Contract Theory

    The study of how ...
  2. Mean Reversion

    A theory ...
  3. Discrete Distribution

    The statistical ...
  4. T Distribution

    A type of ...
  5. Poisson Distribution

    A statistical ...
  6. Normal Distribution

    A probability ...
  7. Symmetrical Distribution

    A situation in ...
  8. Skewness

    Describe ...
  9. Probability Distribution

    A statistical ...
  10. Standard Deviation

    1. A measure of ...

Articles Of Interest

  1. CFA Level 1 - Test Statistics and Interpreting Results

    The list of topics in this section can be intimidating, but we'll show you what you need to know about Quantitative Methods.
  2. Find The Right Fit With Probability Distributions

    Discover a few of the most popular probability distributions and how to calculate them.
  3. Understanding Volatility Measurements

    How do you choose a fund with an optimal risk-reward combination? We teach you about standard deviation, beta and more!
  4. Volatility Index Uncovers Market Bottoms

    VIX can gauge when the market has hit bottom - a welcome sign of better things to come.
  5. A Simplified Approach To Calculating Volatility

    Though most investors use standard deviation to determine volatility, there's an easier and more accurate way of doing it.
  6. Mitigating Downside With The Sortino Ratio

    Differentiate between good and bad volatility with the Sortino Ratio.
  7. Quantitative Analysis Of Hedge Funds

    Hedge fund analysis requires more than just the metrics used to analyze mutual funds.
  8. How To Survive The Trading Game

    Gain insight into how a trader/programmer approaches the task of designing a trading system.
  9. The Basics Of Business Forecasting

    Discover the methods behind financial forecasts and the risks inherent when we seek to predict the future.
  10. How To Lie With Financial Statistics

    Can you really trust what the financial services industry puts out? We tell about some tricks that hide the truth.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center