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Topic
Statistics
13 guides in Finabase Learn
- Alpha The part of a portfolio's return not explained by its market exposure; positive alpha means it beat its risk-adjusted benchmark.
- Backtesting Testing a trading rule on historical data to see how it would have performed, before risking money on it.
- Beta A measure of how much a stock tends to move with the market; a beta of 1.5 means it has moved about 1.5 times as much on average.
- Beta: market beta explained, and what Finabase’s BETA study shows What beta measures, how the regression slope is calculated, why McDonald’s market beta was near zero in 2026, and what Finabase’s 5-bar BETA chart study measures.
- Black swan A rare, extreme and largely unforeseen event with major market consequences, rationalized only after the fact.
- Correlation A statistic from -1 to +1 describing how closely two series move together; low correlation is what makes diversification work.
- Correlation coefficient (CORREL): how two series move together What Pearson correlation measures, a hand calculation on Treasury bond ETF prices, market correlation versus Finabase’s 5-bar CORREL study, and their pitfalls.
- Mean reversion The tendency of a price or ratio to move back toward its long-run average after an unusual move away from it.
- Sharpe ratio A measure of risk-adjusted return: how much excess return over the risk-free rate a portfolio earned for each unit of volatility it carried.
- Standard deviation A statistic that measures how widely values spread around their average; in finance, the standard yardstick for an asset’s volatility.
- The Stock Master quote screen, field by field Read every part of a Stock Master quote: price and change, bid and ask, key statistics, ranges, the technical gauges, the section tabs and the toolbar.
- Time Series Forecast (TSF): linear regression projected one bar How the Time Series Forecast fits a least-squares line to recent closes and extends it one bar, a worked Adobe example, how well its forecasts did, and Finabase’s TSF.
- Volatility How much and how quickly a price moves up and down, usually measured as the annualized standard deviation of returns, historical or implied.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.