Asymmetry of Returns

Asymmetry of returns is asymmetric returns, unbalanced returns or a non-normal distribution of returns. Asymmetry of returns means that the returns do not fall into a normal distribution of the same amount of profit on one side as they loss on the other. Asymmetry of returns means that the positive returns do not balance with the negative returns – they are instead asymmetric, were there are either more positive returns than negative returns (positive asymmetry) or more negative returns than positive returns.

Asymmetric returns is an asymmetric risk/reward profile: one that is imbalanced or skewed toward the upside than the downside. Investors prefer to capture more of the upside, less of the downside. Asymmetry of returns describes this imbalance between profit and loss or positive and negative returns.

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For more information, see:

Asymmetric Payoff

Asymmetric Investing

Asymmetric Risk

Asymmetric Trading System

Asymmetric Risk / Reward

Asymmetric Return Distribution

Asymmetry Ratio

Positive Asymmetry