# Statistical Significance

*Math & Statistics — Finicade finance glossary*

Statistical significance means a result is unlikely under the null hypothesis, conventionally at a p-value below 0.05. It says nothing about whether the effect is large or important — with enough data a trivial difference becomes significant. The 5% convention also guarantees that one in twenty tested nulls is rejected by chance, which is exactly how data mining manufactures trading strategies that don't survive contact with live markets.

**Also known as:** significant result, p < 0.05, significance level

**Related terms:** [P-Value](https://finicade.com/glossary/p-value), [Null Hypothesis](https://finicade.com/glossary/null-hypothesis), [Statistical Power](https://finicade.com/glossary/statistical-power), [Hypothesis Test](https://finicade.com/glossary/hypothesis-test), [Overfitting](https://finicade.com/glossary/overfitting)

**Taught in:** Stat Dojo — Tests of Significance

Source: https://finicade.com/glossary/statistical-significance