What Is Stationarity? A Visual Guide

Stationarity means that a process’s statistical properties that create a time series are constant over time. This statistical consistency makes distributions predictable enabling forecasting, and is an assumption of many time series forecasting models. What …

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Survivorship Bias Risk

Survivorship bias is the risk of analyzing investment performance using only “surviving” constituents of a selected investment universe instead of incorporating all current and historical constituents over the performance period. Survivorship bias artificially increases long …

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