Natural systems witness reversion and divergence simultaneously across different periods of time. This paper tests the performance proxy as mentioned in a previous paper on the ‘Mean Reversion Framework' for Markov's transition probabilities. The framework exhibits a stable pattern when tested...

The original work by Galton on mean reversion in 1886 emphasized relative before absolute, talked about the relation of the variable with the sample average, pointed out the balance between convergence and divergence and showcased cross-domain expression of mean reversion. Though mean reversion...

In their 1985 paper ‘Does the stock market overeact?', DeBondt and Thaler explained the idea of mean reversion and how it leads to the Loser's portfolio of 3 years outperforming the Winner's portfolio of the same time. Based on mean reversion, this paper illustrates a new stock selection and...