What does the following statement mean?
“Relative to the mean return, positive skew amounts to limited, though frequent, downside returns compared with somewhat unlimited, but less frequent, upside returns.”
i understand the skewness but the statement I need to understand
Looking at the positive skew graph, notice that the downside (left hand side) has a lot of small losses with a few, large gains (right hand side). The way I thought of positive skew was that the small, frequent losses were balanced by small, frequent gains with a few large gains for an overall gain.