Variance
A measure of the dispersion of a set of data points around their mean value. Variance is a mathematical expectation of the average squared deviations from the mean. Investopedia Says:
Variance measures the variability (volatility) from an average. Volatility is a measure of risk, so this statistic can help determine the risk an investor might take on when purchasing a specific security. Related Terms:
Coefficient Of Variation
Ex-Post Risk
Heteroskedasticity
Mean
Risk
Semivariance
Standard Deviation
Variance Swap
Volatility
Volatility Swap |