Discover the concept of mean reversion, a financial theory that states asset prices tend to revert to their long-term average ...

The formula of Mean: In statistics, "mean" is a measure of central tendency, calculated by summing up all the values in a dataset and dividing by the number of data points. The single numerical value ...

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 ...