Question

can someone define what is:
- volatility crossover
-mean reversion
-descriptive statistics

Answer 1

1. Volatility crossover is a term used when the volatility for the short term spike over the historical average. It is seen as there are more events which increase the volatility in the short term due to higher uncertainty.It is a key indicator of default cocerns or idiosyncratic risk.

2. Mean reversion is a theory that interest rates ,security prices,or various economic indicators will over time return to their long term averages after a significant long term move.It is used as a matrix for long term derivation of data's and Investment

3. Descriptive statistics are numbers used to summarize data. It is a summary statics that quantitatively describes or summarizes data from a collection of information .It can be analysed through comparability between them.