Standard Deviation

DESCRIPTION

The standard deviation of stock price return is a statistical measure used to quantify the volatility or the dispersion of a stock’s returns over a given period. It helps investors and traders understand how much a stock’s price typically deviates from its average return, indicating the level of risk associated with the stock.

A higher standard deviation indicates greater volatility, meaning the stock’s price experiences larger fluctuations, which can be perceived as a higher-risk investment. Conversely, a lower standard deviation indicates lower volatility, suggesting the stock’s price is more stable and presents a lower-risk investment.


GOOGLE SHEETS FORMULA: STDEVP(20)

Cell B1 = Stock Code

=STDEVP(QUERY({QUERY(GOOGLEFINANCE(B1,"close",today()-80 ,today()),"SELECT Col2 ORDER by Col1 DESC limit 40 LABEL Col2''",1),QUERY(GOOGLEFINANCE(B1,"close",TODAY()-(80) ,TODAY()),"SELECT Col2 ORDER by Col1 DESC limit 40 OFFSET 1 LABEL Col2''",1)},"Select Col1/Col2-1 LIMIT 20"))

TEMPLATE: STANDARD DEVIATION WATCHLIST

WATCHLIST

DASHBOARD:

  • Most and least volatile stocks: A list of the top 10 stocks with the highest and lowest volatility.
  • Histogram: A chart that groups stocks based on their standard deviation values, using ranges such as 0.5% to 1%, 1% to 1.5%, and so on.
  • Column chart: A chart that displays the standard deviation for each individual stock, showcasing their respective volatilities.

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Standard Deviation Formula Tutorial