noun the quality or state of being convex; a curved shape that bulges outward
adjective convex
In mathematics, convexity refers to the property of a function or set that lies above its chord. It is often used in optimization problems to determine the shape of a function.
In finance, convexity is a measure of the curvature in the relationship between bond prices and bond yields. It is used to assess the sensitivity of bond prices to changes in interest rates.
In chemistry, convexity can be related to the shape of molecules or the surface of a container. It is used to describe the spatial arrangement of atoms or particles.
In physics, convexity is relevant in the study of lenses and mirrors, where it describes the outward curvature of the surface. It is important in understanding the behavior of light rays.
In finance, convexity is used to measure the sensitivity of a bond's duration to changes in interest rates. Writers covering financial topics may discuss convexity when explaining bond pricing and risk management.
In psychology, convexity may be used to describe the shape of a graph representing the relationship between two variables. Psychologists analyzing data or conducting research may use convexity to interpret patterns and relationships.
Mathematicians use convexity to describe the property of a function or set that lies above its tangent lines. They may apply convexity in optimization problems, geometry, and other mathematical analyses.
Risk managers in finance use convexity to assess the risk exposure of investment portfolios. They may incorporate convexity analysis into their risk management strategies to better understand how changes in interest rates can impact the value of bonds and other fixed income securities.
Economists may use convexity to study consumer preferences and market behavior. They may analyze convexity in utility functions or demand curves to gain insights into how individuals and firms make decisions.
In architecture, convexity may refer to the curvature or shape of a building or structure. Architects may consider convexity in their designs to create visually appealing and structurally sound buildings.
Statisticians may use convexity in data analysis and modeling to describe the curvature of a relationship between variables. They may apply convexity in regression analysis, hypothesis testing, and other statistical techniques.
Actuaries in insurance and finance use convexity to evaluate the risk and pricing of financial products. They may use convexity to assess the impact of interest rate changes on the value of liabilities and assets.
Investment analysts may use convexity as part of their risk assessment and valuation of fixed income securities. They may analyze convexity to understand how changes in interest rates can affect the performance of bonds and other investments.
In computer science, convexity may be used in algorithms and optimization problems. Computer scientists may apply convexity in machine learning, computer vision, and other areas of research and development.