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

“A simple mean reversion model can provide effective signals for option strategies even when trading costs are included,” she says. In a study released on Monday, Commerzbank shows that prior to the ...

The Canadian banking sphere has been in a perpetual stalemate of market share for decades. Stability stems from bank interdependence and government regulations protecting the industry. A mean ...

McGetrick’s appointment is likely to reinvigorate GMO’s investment professionals and refocus the firm on statistical mean reversion. Although value investing remains challenged in the U.S., GMO’s ...

This video is the third of four with GMO’s Jeremy Grantham. You can watch one, two, and four here. Jeff Ptak: I know that you routinely introspect in the commentaries that you publish. I wondered if ...

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 ...

The Vanguard Real Estate ETF has struggled in recent years, but its average annual return over the past decade is 7.98%. Timing is crucial for VNQ investments, with a clear relationship between 1-year ...

An old Wall Street saying warns investors not to “Catch a falling knife.” The saying has merit in that often, the most straightforward trade an investor can make is to latch onto an already existing ...

Discover how relative value funds use strategies like pairs trading to exploit mispricings, aiming to exceed benchmarks.