Standard deviation

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Related to Standard deviations: variance, standard error

Standard deviation

The square root of the variance. A measure of dispersion of a set of data from its mean.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
In this new method, instead of fitting a response-error relationship, we make (and test) the assumption that response variance is uniform over the response range of the assay; if so, we can use a single pooled estimate of the standard deviation in response units.
Second, the alternative standard error estimator, although better than the default estimate provided by S-Plus, still did not provide a satisfactory estimate of the standard deviation of [beta] Third, most of the variance observed in [beta] in the first simulation study was due to bias.
Precision was estimated by calculating the standard deviation at each of the 118 alleles after sizing with the Local Southern method.
In finance, we use the standard deviation to measure the variability of a stock's historical returns.
Teaching Math I at least once before is associated with an increase in instructional effectiveness of 0.03 standard deviations, measured by students' grades.
With this information, we also calculated standard deviation and extreme spread.
Instead, a significant limitation in intellectual functioning should be defined as performance that is at least two standard deviations below the mean, as both the AAMR and the APA recommended, and the Virginia statute provides.
Based on these sources, 45% of the curve is [+ or -]1.645 standard deviations. Figure 6 illustrates this concept for the two distributions, and Table 1 summarizes the analysis of these two distributions.
The volatility can be estimated by two approaches, either it can be computed by taking the standard deviation of the historical returns (HSD) over the recent past (Taleb, 1997) or by calculating implied volatility (IV) (Latane and Rendleman, 1976) from the observed spot option prices by solving Black and Scholes pricing model.
Although all scholarly research articles generally report descriptive data in some way (for example, means, standard deviations, percentages), even this relatively simple presentation of basic data can lead to confusion.
The authors account for these years by using weighted standard deviations for firm entry, firm exit, and job reallocation rates to see if states and metro areas have similar trends and if the similarities (or differences) change over time.
Combination of B1-B4 using one-half standard deviations shocks###20###22###25###24###23###22###18###13

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