Convexity

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Convexity

Property that a curve is above a straight line connecting two end points. If the curve falls below the straight line, it is called concave.

Convexity

Describing a curve segment whose ends fall above an arbitrarily set straight line. Convex properties are important to charting; for example, when tracking a stock market's performance, a rise in the chart with respect to the previous day's close followed by a correction going down to but not necessarily meeting that close may be described as a convex curve. See also: Concave.

convexity

A mathematical measure of the sensitivity of a bond's price to changing interest rates. A high convexity indicates a greater responsiveness of a bond's price to interest rate changes.
References in periodicals archive ?
The thin alloplast carrier helps to provide a smooth-appearing dorsum postoperatively by evening out the concavities and convexities that commonly occur in the natural surface shape of auricular cartilage.
Gagnon and Johnson (1994) and Barber and Copper (1997) have demonstrated that matching the convexities of asset and liability does not always improve the immunization results.
Female Fig Leaf is a curiously shaped cast that Duchamp presented in several different guises, including a photograph in which concavities appear as convexities.
Thus, if durations are matched and convexities are not, the portfolio prices are hedged only to small changes in the term structure.