What is the meaning of Samona? How popular is the baby name Samona? Learn the origin and popularity plus how to pronounce Samona
Variance. Variance (Ï 2) is a measure of the dispersion of a set of data points around their mean value. In other words, variance is a mathematical expectation of the average squared deviations from the mean. It is computed by finding the probability-weighted average of squared deviations from the expected value. Variance measures the variability from an average (volatility).
The calculation steps are as follows: 1  Calculate the average (mean) price for the number of periods or observations. 2  Determine each period's deviation (close less average price). 3  Square each period's deviation.  Sum the squared 1  deviations. Divide this sum by the number of observations.