# Mean Reversion

*Math & Statistics — Finicade finance glossary*

The tendency of a quantity to drift back toward its long-run average after straying. Interest rates and volatility are modelled this way — they wander, but get pulled home.

**Related terms:** [Stochastic Volatility](https://finicade.com/glossary/stochastic-volatility), [Standard Deviation](https://finicade.com/glossary/standard-deviation), [Random Walk](https://finicade.com/glossary/random-walk)

**Taught in:** Quant Quest — Commodity Modelling

Source: https://finicade.com/glossary/mean-reversion