Previous Page

# Standard Deviation

AnalyticsTrade Team Last updated on 26 Apr 2023

# Standard Deviation

Standard deviation is a statistical measure of the spread of data points in a data set relative to the mean. It is calculated by taking the square root of the variance, which is the average of the squared differences from the mean. Standard deviation is used to measure the volatility of a stock, the risk of a portfolio, or the variability of a population. It is also used to measure the accuracy of a statistical model.

## History of Standard Deviation

Standard deviation was first introduced by Karl Pearson in the late 19th century. Pearson was a mathematician and statistician who developed the concept of standard deviation as a measure of the spread of data points in a data set. Since then, standard deviation has become an important tool in the field of statistics and is used to measure the variability of a population or the risk of a portfolio.

## Table of Comparisons

Statistic Mean Standard Deviation
Stock Price \$50 \$2
Portfolio Return 10% 5%
Population Size 1000 100

## Summary

Standard deviation is a statistical measure of the spread of data points in a data set relative to the mean. It is used to measure the volatility of a stock, the risk of a portfolio, or the variability of a population. It is also used to measure the accuracy of a statistical model. For more information about standard deviation, you can visit websites such as Investopedia, Stat Trek, and Khan Academy.

## See Also

• Variance
• Coefficient of Variation
• Mean Absolute Deviation
• Mean Squared Error
• Root Mean Squared Error
• Z-Score
• Confidence Interval
• Probability Distribution
• Regression Analysis
• Correlation Coefficient

#### AnalyticsTrade Team

ðŸŽ‰ Introducing AnalyticsTrade's exceptional team of expert analysts! ðŸŒŸ These seasoned pros have been dominating the capital market, trading a diverse range of assets for more than 15 years! ðŸ“ˆðŸ’¹ Get ready to level up your game with our top-notch, captivating resources in the capital market! ðŸš€ðŸ“š

X