Quantiles are values that split sorted data or a probability distribution into equal parts. In general terms, a q-quantile divides sorted data into q parts. The most commonly used quantiles are as follows:

• Quartiles (4-quantiles): Three quartiles split the data into four parts.

• Deciles (10-quantiles): Nine deciles split the data into 10 parts.

• Percentiles (100-quantiles): 99 percentiles split the data into 100 parts.

Key Takeaways

The chart helps us to analyse the returns across different time periods which inturn is helpful in determining whether an asset is trending or not.