 Source: wikibot/financial-models-with-long-tailed-distributions-and-volatility-clustering

= Financial models with long-tailed distributions and volatility clustering
{wiki=Financial_models_with_long-tailed_distributions_and_volatility_clustering}

Financial models that incorporate long-tailed distributions and volatility clustering are designed to better capture the complexities and dynamics of financial time series data. Let's break down these concepts: \#\#\# Long-Tailed Distributions 1. **Definition**: A long-tailed distribution is a probability distribution that features a large number of occurrences far from the "head" of the distribution (i.e., the high-probability region).

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