Investment & trading encyclopedia

Understand investment products, market mechanics, indicators and research terminology. Each entry includes an explanation, example, cautions and related learning.

80 explained termsView all courses

Showing 1–1 of 1

Backtesting & researchIntermediate

Survivorship Bias

Survivorship bias arises when a dataset or backtest includes only securities, funds or companies that still exist today and omits those that were delisted, merged, liquidated or closed. Because failures disappear from the sample, average results look better and risks look smaller than they were.