Why Most Stocks Underperform the Index: Idiosyncratic Variance Drag and the Geometry of Compounding
A lognormal model shows that individual stocks carry an idiosyncratic variance penalty making most underperform the index, with about one-third beating the market over five years.
Featured in No. 133 on 2 Oct 2026 · 1 day after release
- Released
- 1 Oct 2026
- First featured
- No. 133 · 2 Oct 2026
- Published in
- Not yet, as far as Semantic Scholar knows
- Fanfare
- 3 of 5
- Identifier
- SSRN 7546579
- Authors
- Gabriele Susinno
Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).