“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 ...

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 ...

Following a sharp 36% drop in less than three months, Abercrombie & Fitch (ANF) is forming what I consider a high-probability mean-reversion setup. Usually, I'm satisfied when one or two indicators ...

The Hull-White model is a key tool in pricing interest rate derivatives. It assumes normally distributed short rates with ...

Today's idea starts with the simplest entry criterion in the book: support and resistance. From there, I layer on a couple of my go-to indicators to confirm the signal before pulling the trigger. I'm ...

At the Strategic Investment Conference 2018, David Rosenberg of Gluskin Sheff warned investors of the coming mean reversion in the stock market, which can push down equity prices by 20% or more.

The UltraPro Short QQQ ETF has a poor track record of losses, but can be used strategically by long-term investors. SQQQ is a leveraged bet against the Nasdaq 100, providing three times the inverse ...

Energy Select Sector SPDR® Fund ETF has more momentum compared to its peers, thanks to a 3.28% dividend yield, but it holds fewer stocks in its portfolio. The market is experiencing a cyclical ...

Speaking to the Investing News Network, David Erfle, editor and founder of Junior Miner Junky, explained why he believes a gold stock mean reversion is about to happen and what he's done to get ...

Milwaukee-based Significance Capital Management LLC has launched as a registered investment adviser, introducing an investment approach built around identifying market turning points through a ...

The idea that stock prices revert to a long term level. Hence, if there is a shock in prices (unexpected jump, either up or down), prices will return or revert eventually to the level before the shock ...