Dispersion

Filed Under »
Dictionary Says

Definition of 'Dispersion'

A term used in statistics that refers to the location of a set of values relative to a mean or average level.
Investopedia Says

Investopedia explains 'Dispersion'

In finance, dispersion is used to measure the volatility of different types of investment strategies. Returns that have wide dispersions are generally seen as more risky because they have a higher probability of closing dramatically lower than the mean. In practice, standard deviation is the tool that is generally used to measure the dispersion of returns. 
Search results for

'Dispersion'

  • The "Dispersion Trade" May Be in Play

    http://stocks.investopedia.com/stock-analysis/moneyshow/TheDispersionTradeMayBeinPlay.aspx
    A well-known fund has just made a huge bet using a particular option strategy that
    seeks to profit from “dispersion,” or a condition where stocks in ...

  • Overcoming Compounding's Dark Side

    http://www.investopedia.com/articles/06/compoundingdarkside.asp
    ... Compound Interest.) There are two factors that can have a significant impact on
    the realized returns experienced by investors: the dispersion of returns and ...

  • Volatility's Impact On Market Returns

    http://www.investopedia.com/articles/financial-theory/08/volatility.asp
    ... advantage of it. Volatility Defined Volatility is a measure of dispersion
    around the mean or average return of a security. One way ...

  • Your Investment Manager: Skilled Or Lucky?

    http://www.investopedia.com/articles/mutualfund/09/composite-presentations-choosing-manager.asp
    ... intended investment strategy. Internal Dispersion The annual internal
    dispersion of the composite should also be displayed. It is ...

  • Should You Buy Stock Or An ETF?

    http://www.investopedia.com/articles/stocks/09/buying-stock-or-etf.asp
    ... When Stock Picking Might Work Industries or situations where there is a wide dispersion
    of returns, or instances in which ratios and other forms of fundamental ...

  • Redefining Investor Risk

    http://www.investopedia.com/articles/trading/10/investors-need-to-know-risk-time.asp
    ... However, the law of large numbers simply implies that the dispersion of returns
    around an investment's expected return will decrease as the time horizon ...

  • Using Historical Volatility To Gauge Future Risk

    http://www.investopedia.com/articles/06/historicalvolatility.asp
    ... Volatility is critical to risk measurement. Generally, volatility refers to
    standard deviation, which is a dispersion measure. Greater ...

  • An Introduction To Managed Futures

    http://www.investopedia.com/articles/optioninvestor/05/070605.asp
    ... rate of return of 30% might look better than one with 10%, but such a comparison
    may be deceiving if they have radically different dispersion of losses. ...

  • CFA Level 1 Study Guide - Quantitative Methods - Standard ...

    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/standard-deviation-and-variance.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • Letter Of Instruction - Don't Leave Life Without It

    http://www.investopedia.com/articles/retirement/08/letter-of-instruction.asp
    ... a letter of intent, is it provides specific information regarding personal preferences
    in medical or funeral care or details concerning dispersion or care of ...

Related Articles

Partner Links