Mean Reversion is a statistical phenomenon in which extreme events are followed by those closest to the mean. In this post, I’ll use regression, mean reversion, and reversion to mean the same term. Don’t get confused. To understand regression to the mean, you must first understand correlation, which is the strength of the relationship between […]
Month: May 2023
Factor Investing
Factor investing is based on finding a specific attribute shared by a group of assets that has historically had a significant impact on investment performance. Today we will see why we shouldn’t give them too much consideration. Over the past 50 years, numerous academic works have sought to identify factors to overperform the market. In […]
Robo-Advisors
I think that currently robo-advisors are still not very useful for those who want to create an income with minimal effort. To be objective, I find robo-advisors to be a great alternative for the general public. Definitely better than the financial advisor in the bank who helps the bank and not you.Not everyone is financially […]