MEAN REVERSION

In this weekly update, we will be working on the analysis, development and programming of a quantitative model based on Standard deviation, volatility and probability of prices.

First, In statistics, the standard deviation (SD, also represented by the Greek letter sigma σ or the Latin letter s) is a measure that is used to quantify the amount of variation or dispersion of a set of data values; A low standard deviation indicates that the data points tend to be close to the mean (also called the expected value) of the set, while a high standard deviation indicates that the data points are spread out over a wider range of values. Please read the PDF for the full Document.