Heteroskedastic
A measure in statistics that refers to the variance of the errors over the sample. Investopedia Says:
Most financial instruments, such as stocks, follow a heteroskedastic error pattern. For example, in regression, a mathematical relationship between a stock and some other type of measure is to be discovered over a period of time; the error found between the line of best fit and the actual data point will vary - for instance, as each variable gets larger the error may increase. Related Terms:
Absolute Frequency
Autocorrelation
Homoskedastic
Regression
Sampling Error |