EPIC and Leptokurtic frequency distribution: Difference between pages

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A short code used to identify listed securities in the UK.
A leptokurtic frequency distribution (or leptokurtotic distribution) has a larger number of values clustered at the peak and in the tails, than a comparable normal distribution with the same variance and mean.


For example, G4S PLC has the EPIC 'GFS'.
A possible explanation for this shape is that the market under review is mean reverting for small market movements (explaining the clustering at the peak) and trending for large market movements (explaining the clustering in the tails).


== See also ==
* [[Frequency distribution]]
* [[Leptokurtosis]]
* [[Lognormal frequency distribution]]
* [[Mean reversion]]
* [[Normal distribution]]
* [[Normal frequency distribution]]
* [[Tail]]
* [[Trend analysis]]
* [[Volatility smile]]


The term 'EPIC' itself originated from the London Stock Exchange's former 'Exchange Price Input Computer'.
The formal term for the codes subsequently became TIDM (Tradable Instrument Display Mnemonics), but the term EPIC is still widely used.
== See also ==
* [[AIM]]
* [[London Stock Exchange]]
* [[Order book for Retail Bonds]]
* [[SEATS]]

Revision as of 14:19, 23 October 2012

A leptokurtic frequency distribution (or leptokurtotic distribution) has a larger number of values clustered at the peak and in the tails, than a comparable normal distribution with the same variance and mean.

A possible explanation for this shape is that the market under review is mean reverting for small market movements (explaining the clustering at the peak) and trending for large market movements (explaining the clustering in the tails).

See also