Difference Between Variance and Standard Deviation
The basic difference between Variance and Standard Deviation is discussed in the table below,
Standard Deviation | Variance |
---|---|
It is the measure of the dispersion of values in a given data set relative to their mean. | It is the statistical measure of how far the numbers are spread in a data set from their average. |
It measures the absolute variability of the dispersion. | It helps determine the size of the data spread. |
It is calculated by taking the square root of the variance. | It is calculated by taking the average of the squared deviations of each value from the average. |
It is primarily used as a measure of market and security volatility in finance. | It is one of the key aspects of asset allocation in investing portfolios. |
Do Check,
Difference Between Variance and Standard Deviation
Variance and Standard deviation both formulas are widely used in mathematics to solve statistics problems. They provide various ways to extract information from the group of data.
They are also used in probability theory and other branches of mathematics. So it is important to distinguish between them. Let’s learn about Standard Deviation, Variance, and their difference in detail in this article.