Warning sign for stock markets: Leptokurtic distribution

We report kurtosis in our Chicago Quantum Net Score analysis for clients on a daily basis. We analyze the daily stock price changes and we compare then to various normal distribution. We look at kurtosis, or the fourth movement of stock prices, and skewness, which is the third movement.

You can think of those statistics as derivatives of stock price changes:

  1. Mean
  2. Variance
  3. Skewness
  4. Kurtosis

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US Advanced Computing Infrastructure Inc.

Jeffrey Cohen, President, US Advanced Computing Infrastructure, Inc., d.b.a. Chicago Quantum (SM).