236 articles 4 sections last published 2026-09-09 independent · no sponsored placements

Measure

Standard deviation

Definition

Dispersion of returns around their mean, usually annualised.

Formula

σ_annual = σ_period × √(periods per year)

How to read it

It is the most common single-number summary of how much a holding moves.

What it does not tell you

Annualising by √time assumes returns are independent and identically distributed. Real return series have fat tails and clustered volatility, so the figure systematically understates how bad the worst days get.

Applied in 124 articles

124

Every figure computed with this measure on this site follows the conventions set out in the methodology. All measures →