Decoded Intelligence Signal
Mean Reversion
advanced
strategy
Verified: May 27, 2026Lexicon Core Definition
The tendency of asset prices to return to a historical average after deviating significantly; driven by arbitrageurs, profit-takers, and contrarian participants who push price back toward the mean; the underlying mechanism of Z-score and statistical arbitrage strategies.
Analysis Breakdown
The tendency of asset prices to return to a historical average after deviating significantly; driven by arbitrageurs, profit-takers, and contrarian participants who push price back toward the mean; the underlying mechanism of Z-score and statistical arbitrage strategies. Full explanation coming soon when Journey 22 content is ingested.