Investor Glossary-look-ahead biasInvestor Glossary-look-ahead biasInvestor Glossary-look-ahead biasInvestor Glossary-look-ahead biasInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Look-ahead Bias

The HTML to link to this page
 

Look-ahead bias is use of information outside the time frame of the simulation period. For example, survivorship bias can be one type of look-ahead bias in a decade long study that exclude bankrupt companies. Look-ahead bias corrections can neutralize results that extrapolate back tested historical portfolio results. If, for example, current quarterly earnings were not known when a simulation was run, look-ahead bias can be expected and better results found once the true earnings are known. Look-ahead bias is often cited in discussing hedge fund performance. Elimination or recognition of look-ahead bias for multi-period winner or portfolio performance persistence studies is an important factor in the accuracy of these studies. Look-ahead bias can also be an important factor in calculating or correcting fund liquidation forecasts.



Rate this look-ahead bias definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, 1031 exchange, wholly-owned subsidiary, margin rate, debt service coverage, phantom income, risk management, ex-dividend date, retained earnings, reverse mortgage, minority interest, required rate of return, FICO score, quality assurance, diluted share, open position, inflation, covered put, stock split, in escrow, cancelled check, real GDP, dividends payable, APR, liquidity ratio, FTSE, balance sheet, 1035 exchange, EBITDA, irrevocable trust, Key Rate Duration, ex-dividend, deferred tax, VIX, option premium, average price per share, implied volatility, current ratio, limit order, deferred revenue, per diem, Zero Cost Collar, annual return, 401a, stock market close, command economy, LIBOR, 144a, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use