Multivariate Model
Definition of 'Multivariate Model'A popular statistical tool that uses multiple variables to forecast possible investment outcomes. Multivariate models predict outcomes of situations that are affected by more than one variable, and are widely used in the financial world. |
|
Investopedia explains 'Multivariate Model'Analysts use them to estimate cash flows and evaluate new product ideas. Portfolio managers and financial advisors use them to predict the impact of individual investments on total portfolio returns. In the insurance industry, multivariate models help insurers estimate risk. Analysts also use this type of model to value stock options. |
Related Definitions
Articles Of Interest
-
Finding Undiscovered Stocks
Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued. -
What Are A Stock's "Fundamentals"?
The investing world loves to talk about fundamentals, but do you know what it means? -
The Changing Role Of Equity Research
Research creates a division of labor that makes the market more efficient. Learn how its role has changed. -
Taking Stock Of Discounted Cash Flow
Learn how and why investors are using cash flow-based analysis to make judgments about company performance. -
Spotting Cash Cows
We show you why some of these companies stand apart from the herd. -
Basic Investment Objectives
You might know about different asset types, but do you know how each type contributes to a particular goal? -
Exploring The Current Account In The Balance Of Payments
Learn how a country's current account balance reflects the country's economic health. -
Low Expense Top Performing ETFs
A technical look at the four ETFs that rank highest for five-year performance, lowest expense ratio and total net assets. -
Break Into Forex In 12 Steps
Learn how to get started in forex trading. -
Market Summary For June 7, 2013
The major U.S. indices were mixed this week as modest improvements in employment numbers struggled to offset stagnant wages and a slightly higher unemployment rate.
Free Annual Reports