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Positive Skew vs Negative Skew
What is the difference between positive skew versus negative skew? Skewness is the measurement of a a coefficient that has the ability to be positive, negative or neutral (zero). The coefficient of the skew is the measurement of the magnitude of the symmetry in the distribution of outcomes of a specific data set of occurrences. The skewness enables traders and investors a way to quantify where the majority of outcomes fell for returns, risks, trades, and stocks in the past inside a probability curve. A skew can also show the frequency of low probability but high magnitude outlier events (Black Swans) if there are fat ... (full story)