Positive Skew

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.

 

POSITIVE ASYMMETRY SKEW

A negative skew is a left-skewed distribution usually appears as a right-leaning curve, which is a negative asymmetry.

A positive skew is a right-skewed distribution that appears as a left-leaning curve, which is positive asymmetry.

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

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