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adverse "left side" tail risk


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08:04 Oct 17, 2011
English to French translations [PRO]
Bus/Financial - Investment / Securities / acknowledged his/her sign
English term or phrase: adverse "left side" tail risk
As adverse "left side" tail risk increases, the Extreme Risk Adjusted Trade Size (ERATS) declines:
Portfolio leverage is reduced
Position level risk is reduced

Il me semble que "tail risk" est le risque de perte extrême mais j'aurais besoin d'aide sur les termes qui précèdent... Merci d'avance !
Lesley Costa
Local time: 16:18


Summary of answers provided
4risque de queue défavorable à gauche
njweatherdon


  

Answers


16 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
adverse \"left side\" tail risk
risque de queue défavorable à gauche


Explanation:
To understand tail risks, first you need to consider distributions, such as the distribution that underlies the bell curve.

A tail risk refers to the risk of events which lie on the thin part of the distribution, which implies that they are relatively uncommon. See http://en.wikipedia.org/wiki/File:Standard_deviation_diagram... formally, tail risk commonly refers to events that are more than 3 standard deviations from the mean, and in your case, more than 3 standard deviations to the left of the mean.

I have not specifically heard of left side tail risks, as it is not a common way of referring to them, but it clearly refers to the risk of an event occurring that is shown on the thin part of the distribution on the left-hand side of the distribution on a graph that is presumably included.

In this case, I suspect that the original should have been written differently, but I think this suggestion works.

Adverse, in this case, refers to the fact that if the outcome found under the left-hand tail of the distribution curve comes to pass, that people will lose money. I think *défavorable* might be the word that you'd want to go with there, although you may want to play with its placement.



njweatherdon
Canada
Works in field
Native speaker of: Native in EnglishEnglish
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