# Tail risk

From MarketsWiki

Tail risk is the risk to a portfolio that arises when the possibility that an investment will move more than three standard deviations from the mean is greater than what is shown by a normal distribution.

Also defined as a low-probability, large deviation event that will negatively affect a particular investment. ^{[1]}

## References

- ↑ Tail-risk hedging the talk of the town. Pensions & Investments.