Investment Asymmetry

Asymmetry in the lack of balance or symmetry.

Asymmetry is an imbalance – a skew or tilt to one side more than other.

Investment asymmetry, or asymmetric investment returns, is a portfolio with a higher profit than loss, or positive skew.

Investment Asymmetry

In probability theory and statistics, skewness is a measure of the asymmetry of the probability distribution. Skewness is a measure of the degree of asymmetry of a distribution. If the left tail is larger than the right tail, the function is said to have negative skewness. If the right tail is larger, it has a positive skew. If the two are equal, it has zero skewness.

Asymmetric Distribution (Asymmetry). If you split the distribution in half at its mean (or median), the distribution of values on the two sides of this central point would not be the same (i.e., not symmetrical) and the distribution would be considered “skewed.”