Understanding Kurtosis. There is some skewness in the data there isnt symmetry. In this blog we discuss the concept of kurtosis and its application in understanding the risk profiles of financial securities.
If the bulk of the data is at the left and the right tail is longer we say that the distribution is skewed right or positively. Kurtosis on the other hand refers to the pointedness of a peak in the distribution curveThe main difference between skewness and kurtosis is that the former talks of the degree of symmetry. Making it an apt description of the concept known as kurtosis.
Kurtosis is defined as the fourth moment around the mean or equal to.
Seems odd on the first or second reading. Now skewness is the easiest to understand and the term really says it all. Skewness and Kurtosis A fundamental task in many statistical analyses is to characterize the location and variability of a data set. Kurtosis on the other hand refers to the pointedness of a peak in the distribution curveThe main difference between skewness and kurtosis is that the former talks of the degree of symmetry.
