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Probability density function is a statistical expression defining the likelihood of a series of outcomes for a continuous variable, such as a stock or ETF return.
This image shows the change of the probability density function of daily precipitation in response to 3 K SST warming simulated by CAM3 at (a) T42, (b) T85, (c) T170, and (d) T340 resolution. The ...
A probability density function (PDF) describes the likelihood of different outcomes for a continuous random variable.
By using one of the common stock probability distribution methods of statistical calculations, an investor may determine the likelihood of profits from a holding.