I recently discussed the ability to use implied volatility to calculate the probability of a successful outcome for any given option trade. To review briefly, the essential concepts a trader must ...

Discover the differences between standard deviation and variance, two essential metrics for investors to assess volatility ...

Standard deviation, while common, inadequately captures investment risk due to its equal treatment of gains and losses and ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Gordon Scott has been an active investor and technical analyst or 20+ years.

An asset's standard deviation tells you how much its returns vary from its average. You can quickly calculate or look up the standard deviation of different assets. A high standard deviation can ...