Asymmetrical Distribution

  

Categories: Metrics, Stocks

Asymmetrical distribution means that the mean, median and mode values of the stock are occurring at irregular points. This shows abrupt and irregular increases and decreases. A normal distribution shows a bell curve, with the sides being even.

The reason the shape on the chart matters is that it indicates a lack of consistency or pattern, which may be the result of a new outside force affecting the market...or perhaps an issue with the stock itself. Basically, it suggests something unusual going on that requires further research.

Related or Semi-related Video

Finance: What is Asymmetric Information?25 Views

00:00

Finance allah shmoop what is asymmetric information Well asymmetry happens

00:08

when two sides of something aren't equal think giant red

00:13

wood and we'd regular crab and fiddler crab recumbent bike

00:18

and a eunice cycle well in the financial world asymmetric

00:22

information exists when one side of a transaction think inside

00:27

trader scumbag who collects briefcases full of cash from somalia

00:31

in overlords versus a normal joe six pack investor trying

00:36

to fairly participate in the stock market So he has

00:39

a pension to retire on while bouncing great grandchildren on

00:43

his newly installed robotic knees Well discount needs don't go

00:48

there Your summer college job is cleaning the house of

00:52

the ceo of whatever dot com currently trading at eighteen

00:55

bucks a share as you empty her garbage one night

00:58

pushing away adult diapers in the process Yes she has

01:01

a lot of pressure on the job on this conference

01:03

calls and saying ooh a lot I push that away

01:07

You realize that microsoft is buying her company for thirty

01:10

dollars a share You then by a ton of stock

01:13

at eighteen bucks you had a symmetric information because you

01:18

dug through the trash and you found the memo from

01:20

whoever the ceo is of microsoft these days to her

01:23

and that was bad You didn't have to act on

01:26

that information like you could have just done a whole

01:29

lot of nothing and not repeated it to anyone and

01:31

left the stock at eighteen dollars until it was all

01:33

in the news at thirty and moved on and still

01:36

have your job cleaning her trash Having inside information isn't

01:40

illegal but doing something to benefit yourself tor You know

01:44

your loved ones is illegal So if you trade based

01:48

on inside asymmetric information well then you just committed a

01:52

felony It's called insider trading And while here's hoping you

01:56

look good and either orange or black or or both

Up Next

Finance: What is co-variance?
8 Views

What is covariance? Covariance is the comparison of how assets move in the markets. Positive covariance is when assets move in tandem, such as when...

Finance: What is probability distribution?
17 Views

What is probability distribution? Statistical analysis is a study that compiles and breaks down data gathered from a wide range of categories and c...

Find other enlightening terms in Shmoop Finance Genius Bar(f)