tail risk
tail risk · tail risks
The probability that the value of something will fall more than three standard…The probability that the value of something will fall more than three standard deviations (-3σ) below the mean; an extreme risk.
Meaning
1 senses(countable, uncountable)The probability that the value of something will fall more than three standard deviations (-3σ) below the mean; an extreme risk.
Origin
From statistics, referring to the end-portion (“tail”) of distribution curves, in financeFrom statistics, referring to the end-portion (“tail”) of distribution curves, in finance usually the left (“loss”) tail.
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Forms
plural: tail risksSynonyms
1 synonymsfat tail risk
Word family
2 related wordsLessons for this word
1 lessons- A1Countable and uncountable nouns — Because it can be uncountable