Standard deviation measures how far numbers in a data set are spread out from an average value. In investing, it is used as a measurement of portfolio volatility.

Variance: An Overview Standard deviation and variance are two basic mathematical concepts that have an important place in ...

Calculate this by dividing the value of each position by the total portfolio value. Let's label these values W1 and W2. The standard deviation of Stock 1 and Stock 2. You can calculate these ...