Multivariate Model

Dictionary Says

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 Says

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.

comments powered by Disqus
Hot Definitions
  1. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  2. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  3. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  4. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  5. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  6. Maritime Law

    A body of laws, conventions and treaties that governs international private business or other matters involving ships, shipping or crimes occurring on open water.
Trading Center