Mean reversion posits that asset prices and market returns eventually gravitate toward their historical averages. This theory, applicable across diverse financial instruments, offers traders insights ...

After a sharp selloff in early February, stocks have steadied, and short-term traders are ...

Forbes contributors publish independent expert analyses and insights. I write about incisive investing advice. Financial planning is all about managing risk, and using mean reversion is a brilliant ...

One investing theory is the reversion to the mean, commonly defined as: "Reversion to the mean, also called regression to the mean, is the statistical phenomenon stating that the greater the deviation ...

Two familiar ideas are shaping markets yet again: mean reversion and momentum. Investors across equities, bonds, and commodities are weighing which force will dominate next and for how long. The ...