Leptokurtic

Leptokurtic
A description of the kurtosis in a distribution in which the statistical value is positive. Leptokurtic distributions have higher peaks around the mean compared to normal distributions, which leads to thick tails on both sides. These peaks result from the data being highly concentrated around the mean, due to lower variations within observations.

When analyzing historical returns, kurtosis helps gauge the level of risk for a stock. If the past return data yields a leptokurtic distribution, the stock will have a relatively low amount of variance, because return values are usually close to the mean. Investors who wish to avoid large, erratic swings in portfolio returns may wish to structure their investments to produce a leptokurtic distribution.


Investment dictionary. . 2012.

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  • leptokurtic — /lep teuh kerr tik/, adj. Statistics. 1. (of a frequency distribution) being more concentrated about the mean than the corresponding normal distribution. 2. (of a frequency distribution curve) having a high, narrow concentration about the mode.… …   Universalium

  • leptokurtic — adjective Said of a distribution if it has positive kurtosis. Syn: leptokurtotic, fat tailed Ant: platykurtic See Also: kurtosis …   Wiktionary

  • leptokurtic — lep·to·kur·tic (lep″to kurґtik) [lepto + Gr. kurtos convex] pertaining to a probability distribution more heavily concentrated around the mean, i.e., having a sharper, narrower peak, than the normal distribution with the same variance. Cf.… …   Medical dictionary

  • leptokurtic — lep·to·kur·tic …   English syllables

  • leptokurtic — | ̷ ̷ ̷ ̷|kərd.ik adjective Etymology: lept + Greek kyrtos bulging, convex, curved + English ic; akin to Latin curvus bent, curved more at crown 1. of a frequency distribution curve : being more peaked than the corresponding normal distribution… …   Useful english dictionary

  • Kurtosis — In probability theory and statistics, kurtosis (from the Greek word κυρτός, kyrtos or kurtos, meaning bulging) is any measure of the peakedness of the probability distribution of a real valued random variable.[1] In a similar way to the concept… …   Wikipedia

  • leptokurtosis — ˌ ̷ ̷ ̷ ̷ˌkərˈtōsə̇s noun Etymology: New Latin, from English leptokurtic + New Latin osis : the condition of being leptokurtic * * * /lep toh kerr toh sis/, n. Statistics. the state of being leptokurtic. [1905 10; NL; see …   Useful english dictionary

  • leptokurtosis — /lep toh kerr toh sis/, n. Statistics. the state of being leptokurtic. [1905 10; < NL; see LEPTOKURTIC, OSIS] * * * …   Universalium

  • Frequency distribution — In statistics, a frequency distribution is an arrangement of the values that one or more variables take in a sample. Each entry in the table contains the frequency or count of the occurrences of values within a particular group or interval, and… …   Wikipedia

  • Moment (mathematics) — Second moment redirects here. For the technique in probability theory, see Second moment method. See also: Moment (physics) Increasing each of the first four moments in turn while keeping the others constant, for a discrete uniform distribution… …   Wikipedia

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