Pushing towards the top: asserting that performing Kolmogorov-Smirnov tests reveals a statistical similarity with minor deviations is an oversimplification that obscures crucial conditions.
The appropriateness of these tests is never an end in itself, especially in emerging markets where intrinsic volatility is a constant reality.
If K-S tests are applied without rigorous validation of the stationarity of time series or the homogeneity of variances, their conclusions can be deeply misleading, masking significant tail risks.
For example, in Brazil, a 'small deviation' in the BRL distribution curves could actually signal a structural weakness in the exchange rate, requiring intervention from reserves.