Statistically significant
A test of whether a result is unlikely to be pure luck. Significant means 'probably not luck', not 'big' or 'good'.
In plain English
Statisticians ask: if there were really no effect, how often would we see a result this strong just by chance? If the answer is 'rarely', the result is called significant.
Uncle Gary explains
Kevin flips a coin and gets heads three times in a row. Not significant: that happens 1 time in 8. He gets heads 20 times in a row. Significant. Either the coin is rigged, or Kevin is.
Why it matters for your money
A result can be significant and still tiny, or significantly worse. In our golden cross test, the only result that survived was significantly worse than a random stock.
Where we tested it
- Does the Golden Cross Work? We Tested 72 Strategies
- Can AI Predict Stock Prices From the News? We Asked It 599 Times
- Does Buying the Dip Work? We Checked Which Dips
- Does Volume Confirm the Trend? Sometimes It Contradicts It
- Are Online Reviews Trustworthy? Five Stars From Seven Reviews
- Lesson 8: Is the Coin Rigged? Hypothesis Testing and the P-Value
- Should You Buy Stocks After Good Earnings? Post-Earnings Drift, Tested
- Lesson 22: Statistically Significant Doesn't Mean Important: Effect Size
Related terms
All glossary terms. Educational content, not financial advice.