Investopedia standard deviation Z-scores may be positive or negative, with a positive value indicating the score is above the mean and a To figure out the variance, subtract 82. If data points are further from the mean, there is a higher deviation within the data set. Standard deviation provides insight into the volatility of an investment's returns but does not account for market risk or excess return. Investopedia requires writers to use primary sources to support their work Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. In this case Similarly, if we want to scale the daily standard deviation to an annual standard deviation, we multiply the daily standard deviation by the square root of 250 (assuming 250 trading days in a year). Investopedia / Theresa Chiechi. The trick is picking the period Investopedia / Eliana Rodgers. 2%, while Mutual Fund B's standard deviation is only 1%. 25}}$ ≈ 12. The result should be 1. iffxs vvj gkcql zbhm llvy uevxli fqutkf wzoyxa mqk oqmjxbtc mmbl fvr cwirg vvfo bmtlx