Skewness formula Negative or positive values indicate the direction of the tail. Negative, or skewed left, means the left ...

There is strong evidence of a negative cross-sectional relationship between realized skewness and future stock returns - stocks with negative skewness are compensated with high future returns for ...

Distributions can be positive and right-skewed, or negative and left-skewed. A high skew can reflect the presence of outliers or kurtosis. Two methods that measure skewness include Pearson’s ...

Positive skewness indicates a greater likelihood of extreme positive returns, while negative skewness suggests a higher probability of extreme negative returns. This asymmetry in returns can ...

Skewness allows us to measure the distribution of a set of returns to see whether the array of probable outcomes are in positive or negative territory. If a distribution is negatively skewed ...