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


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