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What is the definition for annualized volatility?

Updated over 2 years ago

What is the definition for annualized volatility?

Jake Dwyer avatar

Written by Jake Dwyer
Updated over a week ago

Rev. Date May 30, 2019

Volatility is a statistical measure of the dispersion of returns; we display annualized volatility on the platform as:

Οƒ(returns) * sqrt(n)

  • Οƒ(returns) = standard deviation of returns

  • n = number of data points / year

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