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Kurtosis
Term category: Advanced
In 10 words or less: A statistical measure used to describe trends in charts.

Definition: Kurtosis refers to the distribution of observed data around the mean (although not to be confused with standard deviation).

More details: Investors can use kurtosis to describe the trends found in charts.  High kurtosis is characterized by fat tails and concentration around the mean.  Low kurtosis has skinny tails and greater distribution.

Using kurtosis helps to assess the volatility of volatility or the general volatility of returns.

Examples:

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