Categories
Investments glossary

Mean Reversion Definition

Mean reversion is a theory used in finance that suggests that asset prices and historical returns eventually will revert to the long-run mean or average level of the entire dataset. This mean can pertain to another relevant average, such as economic growth or the average return of an industry.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *