9:12 PM
killnine
As Historical Volatility (HV) is calculated using standard deviation, it might be good to understand better about the concept of standard deviation, so that we can interpret the meaning of HV better.
Standard deviation is a measure of data variability or dispersion (i.e. how spread out the data points from its mean).
When the standard deviation is low, that means the data points tend to be very close to its mean (i.e. the data is spread out over a small range of values).
When the standard deviation is high, that means the data points tend to be far away from its mean (i.e. the data is spread out over a large range of values).
This can be understood...
