Standard deviation, while common, inadequately captures investment risk due to its equal treatment of gains and losses and assumption of symmetry. Skewness and kurtosis offer crucial insights, ...

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 ...

The research views expressed herein are those of the author and do not necessarily represent the views of CME Group or its affiliates. All examples in this presentation are hypothetical ...