DEFINITION of 'Shadowing'
The process of creating values for variables that don't rely purely on market value. Some of these variables have a market value in the present but have indeterminable future market values due to variable conditions.
Shadowing is used as in costbenefit analysis, which allows analysts to evaluate the future comprehensive value of a variable in any number of projected conditions.
BREAKING DOWN 'Shadowing'
Shadowing calculates a shadow price for the variable rather than relying solely on market price, which is how the value of economic variables tends to be measured. This hypothetical shadow price is calculated largely based on the opportunity costs and benefits of the projected scenario. By taking into account the potential costs and benefits of any given scenario, the value of the variable then reflects those circumstances in its determined worth.

Sensitivity Analysis
Sensitivity analysis is a technique used to determine how different ... 
Random Variable
A variable whose value is unknown or a function that assigns ... 
Shadow Pricing
1. The actual market value of one share of a money market fund. ... 
Shadow
A small line found on a candle in a candlestick chart that is ... 
Variable Cost Ratio
Variable costs expressed as a percentage of sales. The variable ... 
Variability
The extent to which data points in a statistical distribution ...

Markets
Understanding Regression
Regression is a statistical analysis that attempts to predict the effect of one or more variables on another variable. 
Trading
What's a Sensitivity Analysis?
Sensitivity analysis is used in financial modeling to determine how one variable (the target variable) may be affected by changes in another variable (the input variable). 
ETFs & Mutual Funds
What is the Shadow Banking System?
The shadow banking system is composed of financial institutions that do not take deposits in the tradition sense. 
Markets
Stock and Flow Variables Explained: A Closer Look at Apple
The difference between stock and flow variables is an essential concept in finance and economics. We illustrate with financial statements from Apple Inc. 
Investing
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Financial Advisor
Variable Annuities: The Pros and Cons
Variable annuities are one of the most complicated financial instruments. Here is an in depth look at their pros and cons. 
Retirement
Variable Annuity Basics
Find out how variable annuities can help you plan for retirement by offering the returns of the stock market with the guarantee of insurance. 
Financial Advisor
Becoming an Advisor: Why You Should Shadow a Pro
Meeting with financial advisors and following them during a workday will help you to know if itâ€™s worth the time and effort to make the career switch. 
Retirement
Variable Annuities: The Good, The Bad and the Ugly
An indepth guide to everything you need to know and watch out for with variable annuities. 
ETFs & Mutual Funds
Variable Annuities: The DoItYourself Pension Plan
Variable annuities can cost more than mutual funds, but that might be worth the protection they can add to your retirement.

What variables are most important when making a prediction through sensitivity analysis?
Explore sensitivity analysis and how this method considers different variables to determine a course of action based on statistical ... Read Answer >> 
Which is wiser, rolling over my traditional IRA to variable annuity or vice versa? ...
I am 46 years old. I have a traditional IRA and Variable Annuity. What will it cost me to roll either way? ... Read Answer >> 
What is the difference between direct costs and variable costs?
Learn about variable costs and direct costs, how direct costs and variable costs are classified and the differences between ... Read Answer >> 
What are the variables in variable costs?
Learn about variable costs. Explore how and why these costs may fluctuate, as well as ways in which they may differ from ... Read Answer >> 
Do production costs include all fixed and variable costs?
Learn more about fixed and variable costs and how they affect production costs. Understanding how to graph these costs can ... Read Answer >> 
What is variable life insurance?
Variable life insurance is a permanent life insurance policy with an investment component. Read Answer >>