Positive Asymmetry

Positive Asymmetry is an asymmetric risk/reward profile that is positively imbalanced or skewed toward the gain than loss. Investors prefer to capture more of the upside, less of the downside.

cropped-asymmetry-logo.jpg

Positive Asymmetry of a trade payoff (asymmetric payoff) is when the downside is limited, but the upside is unlimited.

Positive Asymmetry is positive asymmetrical risk/reward occurs when the potential or realized reward is greater than the potential or realized loss.

In probability theory, the skew is a measure of the asymmetry of the probability distribution. With each graph below, the values on the right side of the distribution taper into tails, so they provide a visual observation to determine which of the two kinds of skewness a distribution has: positive or negative.  A negative skew is a left-skewed distribution usually appears as a right-leaning curve. A positive skew is a right-skewed distribution that appears as a left-leaning curve.

 

POSITIVE ASYMMETRY SKEW

For information about ASYMMETRY® visit http://www.shell-capital.com 

Positive Asymmetry click for PDF: Positive Asymmetry

Keywords: positive asymmetry, positive asymmetric risk/reward, asymmetric returns, asymmetric payoff

 

ASYMMETRY® ASYMMETRY Investment Program® ASYMMETRY Capital Partners® and Global Tactical Rotation® are registered service marks of Shell Capital Management, LLC

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s