The Alternative Investment Management Association  Alternative
Investment Management Association      standard deviation  For
an investment portfolio, it measures the variation of returns
around the portfolios mean-average return. In other words, it
expresses an investment's historical volatility. The further the
variation from the average return, the higher the standard
deviation.  statistical arbitrage  A Market-neutral investment
strategy that seeks to simultaneously profit and limit risk by
exploiting pricing inefficiencies identified by mathematical
model designed on the assumption that prices will trend toward
their historical norms (See Mean reversion). The strategy often
involves high velocity and high volume trading of short-term
positions.  sterling ratio  This is a return/risk ratio. Return
(numerator) is defined as the Compound Annualized Rate of Return
over the last 3 years. Risk (denominator) is defined as the
Average Yearly Maximum Drawdown over the last 3 years less an
arbitrary 10%. To calcul