Standard deviation

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Related to Standard deviation: variance

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.

References in periodicals archive ?
Look back at the first example in the normal distribution where the value was $1,000,000 and the standard deviation estimate was $100,000.
27 standard deviations above the average on the math exam in the fall of kindergarten, while black students fell 0.
You can see how the six-sigma machine has a very much smaller standard deviation compared to the three-sigma machine.
Confidence limits for quantified values (calibrators, control samples, or unknown samples) are calculated as the concentrations corresponding to the limits of the 95% confidence interval for the mean response for each replicate group, using the pooled standard deviation and the t-statistic based on the degrees of freedom for the pooled standard deviation.
Some analysts have cited a slight trend decline in the cross-sectional standard deviation of GDP growth in the G-7 economies over the period since the 1970s as evidence of a rise in the correlation of GDP growth (chart 10).
Importantly, Gould's (1986) thesis focuses on declining standard deviation values as indicators of better performance.
They matched these high-insulin people with 32 controls who had insulin levels within 1 standard deviation of the group mean.
In Figure II, the spreadsheet has been filled out with BUN control values and calculated standard deviation limits.
5 deviation in his first is the only president with a lower standard deviation in his approval ratings.
The precision of the spectrophotometer was determined by pooled standard deviation calculated from the measurements of the color patches.
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.

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