How To Calculate Volatility From Variance?

Short tutorial on how to calculate volatility from variance with neat example.

Volatility Calculation in Finance

In finance, Volatility is a statistical measure of the dispersion of returns for a given market index. It can either be measured by using the standard deviation or variance between returns from that same market index. The volatility is calculated as the square root of the variance, S. Given by V=sqrt(S).

In this short tutorial, let us discuss on how to calculate volatility from variance using a simple example.
How To Calculate Volatility
Volatility V = √ Variance (S)
Volatility Formula
Learn here How To Calculate Variance?
Step 1: From the above tutorial link we know that the variance of the sample data is 167.3. How to Calculate Volatility from Variance?
Variance (S) = 167.3
Volatility Example
Step 2: Applying the value in the formula,
Volatility V = √ Variance (S)
Volatility V = √ 167.3
Volatility V = 12.934
Volatility Calculation

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