Decoded Intelligence Signal
Log Return
advanced
strategy
Verified: May 27, 2026Lexicon Core Definition
The natural logarithm of the ratio of two successive prices; ln(P_t / P_{t-1}); preferred over simple returns for ML feature engineering due to desirable statistical properties including approximate stationarity and additivity.
Analysis Breakdown
The natural logarithm of the ratio of two successive prices; ln(P_t / P_{t-1}); preferred over simple returns for ML feature engineering due to desirable statistical properties including approximate stationarity and additivity. Full explanation coming soon when Journey 23 content is ingested.