Skewness And Kurtosis Interpretation. Most commonly a distribution is described by its mean and variance which are the first and second moments respectively. Kurtosis interpretation kurtosis is the average of the standardized data raised to the fourth power.
For skewness if the value is greater than 1 0 the distribution is right skewed. Another less common measures are the skewness third moment and the kurtosis fourth moment. Skewness tells you the amount and direction of skew departure from horizontal symmetry and kurtosis tells you how tall and sharp the central peak is relative to a standard bell curve.
The frequency of occurrence of large returns in a particular direction is measured by skewness.
Most commonly a distribution is described by its mean and variance which are the first and second moments respectively. A general guideline for skewness is that if the number is greater than 1 or lower than 1 this is an indication of a substantially skewed distribution. For skewness if the value is greater than 1 0 the distribution is right skewed. While skewness focuses on the overall shape kurtosis focuses on the tail shape.
