DEFINITION of 'Robust'
A characteristic describing a model's, test's or system's ability to effectively perform while its variables or assumptions are altered. A robust concept can operate without failure under a variety of conditions.
INVESTOPEDIA EXPLAINS 'Robust'
Robustness can relate to both economic and statistical concepts. For statistics, a test is claimed as robust if it still provides insight to a problem despite having its assumptions altered or violated. In economics, robustness is attributed to financial markets that continue to perform despite alterations in market conditions. In general, being robust means a system can handle variability and remain effective.
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What is the variance/covariance matrix or parametric method in Value at Risk (VaR)?
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The value at risk is a statistical risk management technique that monitors and quantifies the risk level associated with ... Read Full Answer >> 
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An investor should have as much variance in an indexed fund as he is comfortable with. Variance is the measure of the spread ... Read Full Answer >> 
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The correlation coefficient can be used to measure the linear dependence between two random variables. The most common correlation ... Read Full Answer >> 
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