Nooreign

Kurtosis

The heaviness of a distribution's tails relative to its variance.

What it commits you to

In the takeoff literature, high kurtosis means returns to a strategy are extremely heavy-tailed: most of the time there is nothing, and rarely there is a great deal. Distinguishing variance from kurtosis matters because the two behave differently under compounding, and high kurtosis is the signature of takeoff. Ordinary risk frameworks average it away, which is the mistake.

Which realms lean on this

Every realm has to keep a system honest. These are the terms that say out loud what the other kinds keep implicit.

alignment · 5 realms — The Benthamite Foundry, The Existential Wilds, The Longview Foundry, The Stoic Ramparts, The Ubuntu Weave.

See also