Definitions for "Mean reversion"
Tendency of a quantity to evolve towards a long term average.
According to this principle, prices, rates, and volatilities fluctuate around their average value after reaching their extremes.
The name given diverse processes by which variables such as prices, rates, and volatilities tend to return to a mean or average value after reaching extremes.
Keywords:  criterion, variance, analysis
Mean variance analysis Mean variance criterion
A strategy that involves purchasing an underperforming stock or another type of security and holding the position until the market rebounds.