SENSEX
NIFTY
GOLD
USD/INR

Weather

image 17    C

Economy News

The Economic Times

Economy / The Economic Times

details

Beyond standard deviation: skewness, kurtosis matter

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, revealing the asymmetry and frequency of extreme returns. Combining these measures provides a more comprehensive understanding of potential upside and downside, enabling better risk management.

23 Feb 2026 6:30 am