Who is responsible for the validation that performing Kolmogorov-Smirnov tests directly translates into a proof of statistical similarity without nuances?
Performing these tests alone does not guarantee a relevant interpretation without clear documentation of underlying assumptions.
If empirical data come from low-liquidity emerging markets, results can be misleading.
For example, applying KS tests to Asian venture capital portfolios with Western benchmarks could mask significant structural divergences.
Such an approach would require escalation for a thorough review of governance of data and models.