BusinessAugust 27, 2026

stochastic

stuh-KAS-tik

Definition

Involving a random process or variable where outcomes are determined by probability rather than strict determinism.

Etymology

Derived from the Greek 'stokhastikos', meaning 'skilled in guessing' or 'able to conjecture', it entered English in the 17th century to describe processes involving probability.

In the news

The article uses the term to describe the inherent randomness and noise found in financial data, which complicates the modeling of market movements.

Deep Learning & Alpha Generation in Quant Finance 2026

Read the full article ↗

Rebellion Research

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