Standard deviation: Difference between revisions
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''Statistics - measures of spread''. | |||
(SD). | (SD). | ||
| Line 5: | Line 7: | ||
The standard deviation is the square root of the variance. | The standard deviation is the square root of the variance. | ||
Standard deviation is used widely as a measure of risk, because it is relatively easy to calculate, compare and combine with the standard deviations of other variables. | Standard deviation is used widely as a measure of risk, because it is relatively easy to calculate, and to compare and combine with the standard deviations of other variables. | ||
Its order of magnitude is the difference, ignoring the sign, between the mean and a randomly chosen item in the population. | |||
Standard deviation is a similar concept to ''mean deviation'', but it is calculated on a more refined basis. | |||
== See also == | == See also == | ||
* [[Beta]] | |||
* [[Coefficient of variation]] | * [[Coefficient of variation]] | ||
* [[Correlation]] | |||
* [[Correlation coefficient]] | * [[Correlation coefficient]] | ||
* [[Deviation]] | |||
* [[Hedging]] | |||
* [[Mean]] | * [[Mean]] | ||
* [[Mean deviation]] | * [[Mean deviation]] | ||
* [[Normal frequency distribution]] | * [[Normal frequency distribution]] | ||
* [[Pearson's Coefficient of Skew]] | * [[Pearson's Coefficient of Skew]] | ||
* [[Quartile deviation]] | |||
* [[Risk]] | * [[Risk]] | ||
* [[Sigma]] | * [[Sigma]] | ||
* [[Spread]] | |||
* [[Value at risk]] | * [[Value at risk]] | ||
* [[Variability]] | |||
* [[Variance]] | * [[Variance]] | ||
* [[Volatility]] | * [[Volatility]] | ||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
Latest revision as of 15:22, 20 August 2022
Statistics - measures of spread.
(SD).
Standard deviation measures the spread of data around their mean.
The standard deviation is the square root of the variance.
Standard deviation is used widely as a measure of risk, because it is relatively easy to calculate, and to compare and combine with the standard deviations of other variables.
Its order of magnitude is the difference, ignoring the sign, between the mean and a randomly chosen item in the population.
Standard deviation is a similar concept to mean deviation, but it is calculated on a more refined basis.
