Historical Volatility – Part 4: Understanding Standard Deviation

Go back to Part 3: Steps to Calculate HV using MS Excel (with Example)As Historical Volatility (HV) is calculated using standard deviation, it might be good to understand better about the concept of standard deviation, so that we can interpret the meaning of HV better.Standard deviation is a measure of data variability or dispersion (i.e. how spread out the data points from its mean).When the standard deviation is low, that means the data points...

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