Skewness And Kurtosis Interpretation. Skewness is a measure of the symmetry in a distribution. Any standardized values that are less than 1 i e data within one standard deviation of the mean where the peak would be contribute virtually nothing to kurtosis since raising a number that is less than 1 to the fourth power makes it closer to zero.
For kurtosis the general guideline is that if the number is greater than 1 the distribution is too peaked. If skewness is between 0 5 and 0 5 the distribution is approximately symmetric. 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.
If skewness is between 1 and 0 5 or between 0 5 and 1 the distribution is moderately skewed. If skewness is between 1 and 0 5 or between 0 5 and 1 the distribution is moderately skewed. Kurtosis tells you the height and sharpness of the central peak relative to that of a standard bell curve. Kurtosis interpretation kurtosis is the average of the standardized data raised to the fourth power.
