Synonyms that are in the dictionary are marked in green. Synonyms that are not in the dictionary are marked in red.
Antonyms that are in the dictionary are marked in green. Antonyms that are not in the dictionary are marked in red.
Although not guaranteed, the subsequent mean reversion occurs due to realized synergies and the intervention of technical traders.
Source: https://investorplace.com/2023/10/forget-bonds-buy-these-7-dividend-rock-stars-instead/
Further mean reversion is typical as rising unemployment crimps demand.
In the previous years, investor sentiment drove Cardinal Health to unjustified low valuation multiples and as the stock was clearly undervalued a reversion to the mean was reasonable (and had to be expected at some point).
The mean reversion factor is estimated as the current price relative to the trailing 60-month (5-year) moving average.
This is a partial reversion to help level it out.