what is the difference between the standard deviation and variance of stock returns?
240711
Standard deviation looks at how spread out a group of numbers is from the mean, by looking at the square root of the variance. The variance measures the average degree to which each point differs from the mean—the average of all data points.
1172720
['Compute the square of the difference between each value and the sample mean.', 'Add those values up.', 'Divide the sum by n-1. This is called the variance.', 'Take the square root to obtain the Standard Deviation.']
1123948
Variance is a measure of the dispersion and is not bound by any time period. On the other hand, volatility captures the degree of variation of a time series over time. In finance, volatility is a measure of the standard deviation over a certain time horizon (typically annual).
1021874
Sum up the squared deviations (the distances from each number to the mean) and take the mean of that number. This is the variance, or a rough measure of how spread out they are. To find the standard deviation you take the square root of the variance. Voila!
648082
Let's start with a translation in English: The variance of historical returns is equal to the sum of squared deviations of returns from the average (R) divided by the number of observations (n) minus 1.
874503
['Step 1: Select the period and measurement period over which you wish to calculate the variance. ... ', 'Step 2: Calculate the average return. ... ', 'Step 3: Calculate the difference between each of the individual returns and the average return. ... ', 'Step 4: Calculate the square of the differences and add them all up.']
261170
The square of the standard deviation is called the. variance.
372470
Description. Standard deviation is the statistical measure of market volatility, measuring how widely prices are dispersed from the average price. If prices trade in a narrow trading range, the standard deviation will return a low value that indicates low volatility.
1359011
Because of the squaring the variance is not directly comparable with the mean and the data themselves. The square root of the variance is called the Standard Deviation σ.
862956
Definition. Standard deviation of portfolio return measures the variability of the expected rate of return of a portfolio. Its value depends on three important determinants. Proportion of each asset in the portfolio.
870406
The standard deviation is a statistical measure of volatility. These values provide chartists with an estimate for expected price movements. Price moves greater than the Standard deviation show above average strength or weakness. The standard deviation is also used with other indicators, such as Bollinger Bands.
1014977
The value of the variance can be 0 (no variability) or greater than 0 (there is variability). The standard deviation, also called the root mean square deviation, is a measure of variability for the average distance that scores deviate from their mean. It is calculated by taking the square root of the variance.
752236
The variance measures how far the values of X are from their mean, on average. Var(X) = E((X − µX)2) = E(X2) − (E(X))2. The variance is the mean squared deviation of a random variable from its own mean. If X has high variance, we can observe values of X a long way from the mean.
453958
The standard deviation is the positive square root of the variance. The standard deviation and variance can never be negative.
842964
Portfolio Standard Deviation refers to the volatility of the portfolio which is calculated based on three important factors that include the standard deviation of each of the assets present in the total Portfolio, the respective weight of that individual asset in total portfolio and correlation between each pair of ...
642961
Standard Deviation. Standard deviation is a statistic that looks at how far from the mean a group of numbers is, by using the square root of the variance. The calculation of variance uses squares because it weighs outliers more heavily than data closer to the mean.
1360431
Var = (Mean square) - (Mean)^2 To find the standard deviation, take the square root of the variance. StDev = sqrt(Var) Note that these values are estimates, because with grouped data, you don't have the exact figures to work with.