Will mean reversion continue to be a relevant market phenomenon? How can you combine mean reversion with other trading techniques?

Subsequently, we show that mean reversion makes stocks less risky for investors with long investment horizons. Next, we consider a mean-variance efficient ... Jan 8, 2025 ... The gambler's fallacy may lead many to believe that the market is “due” for a bad year given a meaningfully lower long-term average annual return for the S&P ... Nov 13, 2020 ... Nevertheless, we do not observe a significant change in the degree of persistence across subsamples and once more mean reversion is found if ... Jan 31, 2024 ... Mean reversion is a theory or concept used by traders and investors to time strategies. It suggests that, over time, prices will move toward a long-term ... Mar 19, 2025 ... We concluded that the popular evidence for mean reversion is an “optical illusion” that employs hindsight. We used the Yearbook's global dataset ... Apr 27, 2020 ... We demonstrated that rebalancing a strategic asset allocation was inherently concave (ie mean reversionary) whereas trend-following and momentum was inherently ... This paper provides the strongest evidence yet that real exchange rates were mean-reverting over the 1973-93 period. Aug 11, 2014 ... We discuss in detail how to do mean-reversion based on this approach, including common pitfalls encountered in practical applications, such as ... Aug 31, 2016 ... This unstated belief that things revert back to the way they used to be is both deeply set, and at the heart of much of value investing. Aug 28, 2024 ... In practical applications, mean reversion is a popular strategy in algorithmic trading. Traders may buy undervalued assets, anticipating they ...