Portfolio Analytics
Survivorship Bias
Definition
What is Survivorship Bias?
The error caused by analysing only investments that survived while excluding failed or delisted ones.
Example in practice
How This Looks in Practice
A fund study overstates returns by omitting funds that closed.
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Related Terms
Portfolio Analytics
Correlation
A statistic ranging from minus one to plus one that describes how two return series move together.
Portfolio AnalyticsPositive Correlation
A relationship in which two assets tend to move in the same direction.
Portfolio AnalyticsNegative Correlation
A relationship in which two assets tend to move in opposite directions.
Risk ManagementStress Test
An analysis of portfolio performance under severe but plausible scenarios.