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What is survivorship bias and how does it impact quantitative strategies or quantitative signals
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STRATxAI

May 2024 · 5 min read

Survivorship Bias

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Research

What is survivorship bias ?

Survivorship bias represents the flawed concept of using data from companies that are only alive and correct as of today and not accounting for companies, funds or data that were alive in the past but are delisted, dead or not tradeable now. The ability to account for survivorship bias is a fundamental concept to ensure that an investment strategy is realistic and the efficacy metrics employed to evaluate it are robust and correct.

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