A stock's historical variance measures the difference between the stock's returns for different periods and its average return. A stock with a lower variance typically generates returns that are ...

Discover how to calculate covariance to assess stock relationships and optimize your portfolio, balancing risk and potential ...

Learn about semivariance, a key metric for assessing a portfolio’s downside risk. Understand its formula and how to calculate potential negative variations below the mean.

Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

Standard deviation and variance are two basic mathematical concepts that have an important place in various parts of the financial sector, from accounting to economics to investing. Both measure the ...

Excess return refers to the return on an investment that surpasses the return of a benchmark or a risk-free rate. It measures the performance of an investment in relation to its expected or required ...

This article was originally published on Built In by Eric Kleppen. Variance is a powerful statistic used in data analysis and machine learning. It is one of the four main measures of variability along ...