Standard deviations financial definition of Standard deviations. Standard deviations finance term by the Free Online Dictionary.

Standard deviation

The square root of the variance. A measure of dispersion of a set of data from its mean.

Historical Volatility

A measure of a security's stability over a given period of time. While there are various ways to calculate it, the most common way is to compute the average deviation from the average price over the period of time one wishes to measure. The historical volatility is often compared to the implied volatility to determine if a security is overvalued or undervalued. Generally, securities with a higher historical volatility carry more risk. It is also called realized volatility or the standard deviation. See also: Volatility.

standard deviation

A statistical measure of the variability of a distribution. An analyst may wish to calculate the standard deviation of historical returns on a stock or a portfolio as a measure of the investment's riskiness. The higher the standard deviation of an investment's returns, the greater the relative riskiness because of uncertainty in the amount of return. See also risk, variance.

Standard deviation. Standard deviation is a statistical measurement of how far a variable quantity, such as the price of a stock, moves above or below its average value. The wider the range, which means the greater the standard deviation, the riskier an investment is considered to be.

Some analysts use standard deviation to predict how a particular investment or portfolio will perform. They calculate the range of the investment's possible future performances based on a history of past performance, and then estimate the probability of meeting each performance level within that range.

Standard Deviation

What Does Standard Deviation Mean?

(1) A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. The standard deviation is calculated as the square root of the variance. (2) In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation also is known as historical volatility and is used by investors as a gauge for the amount of expected volatility.

Investopedia explains Standard Deviation

Standard deviation is a statistical measure that helps shed light on an investment's historical volatility. For example, a volatile stock will have a high standard deviation, whereas the deviation of a stable blue-chip stock will be lower. A large dispersion indicates how much the return on an investment deviates from the expected normal returns.

Related Terms:
• Beta
• Bollinger Bands
• Coefficient of Variation—CV
• Covariance
• Volatility

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Appraisal Ratio Black Scholes Model Black-Scholes Option-Pricing Model Bollinger Band Bollinger Bands Coefficient of Variation Desvio estandar Hyoujun Hensa Reward-to-Volatility Ratio risk Risk-Reward Ratio Sharpe Ratio Standardized Normal Distribution Standardized Value Statistical Tracking Error Volatility Z Score	The default parameters of 20 periods for the moving average and standard deviation calculations, and two standard deviations for the bandwidth are just that, defaults. Bollinger Bands by International Business Times - US ed. 13 standard deviations below the Philadelphia average, respectively, while the pre-intervention scores of the full set of 142 regular public schools were 0. For-profit and nonprofit management in Philadelphia schools: what ... by Peterson, Paul E.; Chingos, Matthew M. / Education Next DataRecorder calculates averages, standard deviations, process centeredness, and process capability index (Cpk). Data management software for ultrasonic welders by Plastics Technology	Stale Price Arbitrage Stalking Horse Stalking Horse Bid Stalwart Stamp Duty Stamp Tax Stand up to Stand-Alone Company Stand-Alone Principle Standard & Poor's Standard & Poor's 100 Stock Index Standard & Poor's 400 Stock Index Standard & Poor's 500 Index Standard & Poor's 500 Stock Index Standard & Poor's Confidence Indicator Standard & Poor's Depositary Receipt Standard & Poor's MidCap 400 Index Standard & Poor's Midcap Index Standard & Poor's SmallCap 600 Index Standard & Poor's Underlying Rating Standard & Poor's/Citigroup Growth and Value Indexes Standard & Poor'sr Standard Deduction standard depth Standard Deviation Standard deviations Standard Error Standard Industrial Classification Standard Industrial Classification Code Standard Industrial Classification System standard metropolitan statistical area standard mortgage clause standard of care Standard Opinion standard practices of the trade Standardized Normal Distribution Standardized Value Standby Agreement standby commitment standby fee standby letter of credit Standby Underwriter Standby Underwriting standing standing timber Standstill Agreement Stanza di compensazione stapled stock Starker transaction Start-Up Start-Up Company	standard deviation standard deviation standard deviation standard deviation standard deviation standard deviation Standard Deviation between Replicates Standard Deviation Distance Measure Standard Deviation Index Standard Deviation of a Single Height Measurement Standard Deviation of Color Matching Standard Deviation of Lateral Position Standard Deviation of Normal to Normal Standard Deviation of Normal-to-Normal Intervals Standard Deviation of Nucleolar Area Standard Deviation of Pixel Ratio Standard Deviation of Prediction Standard Deviation of Respiration Rate Standard Deviation of Run Length Standard Deviation of the Averages of NN Standard Deviation of the Error Standard Deviation of the Mean Standard Deviation of the Nuclear Perimeter Standard Deviation of the Number of Delayed Frames Standard Deviation Percent Mean Standard Deviation Related to Quality Standard Deviation Score Standard Deviation Score for Length Standard Deviation Score of Height for Chronological Age Standard deviations Standard Device Level Protocol Standard Diagnostic Test Standard Dial-Up Standard Dial-up POP3 Service Standard Diameter Ratio Standard Dichotic Listening Test Standard Dictionary of Folklore Mythology and Legend Standard Diesel Injection Standard Digital Data Exchange Format Standard Digital Hierarchy Standard Digital Markup Language Standard Digital Television Standard Dimension Ratio standard dimensions ratio standard dimensions ratio standard dimensions ratio Standard Direct Layer Standard Direct Product Hour Standard Direct Receiver Standard Disbursing Initiative Standard Disclaimer and Warning Standard Disk Interface/Interconnect Standard Distance File Standard Distance Package Standard distribution Standard distribution Standard distribution Standard distribution Standard Distribution List

Mentioned in

References in periodicals archive

Financial browser

Full browser

Appraisal Ratio
Black Scholes Model
Black-Scholes Option-Pricing Model
Bollinger Band
Bollinger Bands
Coefficient of Variation
Desvio estandar
Hyoujun Hensa
Reward-to-Volatility Ratio
risk
Risk-Reward Ratio
Sharpe Ratio
Standardized Normal Distribution
Standardized Value
Statistical Tracking Error
Volatility
Z Score

The default parameters of 20 periods for the moving average and standard deviation calculations, and two standard deviations for the bandwidth are just that, defaults.

Bollinger Bands by International Business Times - US ed.

13 standard deviations below the Philadelphia average, respectively, while the pre-intervention scores of the full set of 142 regular public schools were 0.

For-profit and nonprofit management in Philadelphia schools: what ... by Peterson, Paul E.; Chingos, Matthew M. / Education Next

DataRecorder calculates averages, standard deviations, process centeredness, and process capability index (Cpk).

Data management software for ultrasonic welders by Plastics Technology

Stale Price Arbitrage

Stand-Alone Principle