Coefficient Of Variation - CV
- Coefficient Of Variation - CV
- A statistical measure of the dispersion of data points in a data series around the mean. It is calculated as follows:
The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a useful statistic for comparing the degree of variation from one data series to another, even if the means are drastically different from each other.
In the investing world, the coefficient of variation allows you to determine how much volatility (risk) you are assuming in comparison to the amount of return you can expect from your investment. In simple language, the lower the ratio of standard deviation to mean return, the better your risk-return tradeoff.
Note that if the expected return in the denominator of the calculation is negative or zero, the ratio will not make sense.
Investment dictionary.
Academic.
2012.
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Coefficient De Variation — En théorie des probabilités et statistiques, le cœfficient de variation est une mesure de la dispersion relative : il se calcule comme le rapport entre l écart type et la moyenne . Ce nombre est sans unité ; c est une des raisons pour… … Wikipédia en Français
Coefficient de variation — ● Coefficient de variation rapport, exprimé sous forme de pourcentage, de l écart type à la valeur absolue de la moyenne ou de l espérance mathématique … Encyclopédie Universelle
Coefficient of variation — In probability theory and statistics, the coefficient of variation (CV) is a normalized measure of dispersion of a probability distribution. It is also known as unitized risk or the variation coefficient. The absolute value of the CV is sometimes … Wikipedia
Coefficient de variation — En théorie des probabilités et statistiques, le coefficient de variation est une mesure de la dispersion relative : il se calcule comme le rapport entre l écart type et la moyenne . Ce nombre est sans unité ; c est une des raisons pour… … Wikipédia en Français
coefficient of variation — or coefficient of variability : the ratio of the measure of variability, usually the standard deviation, to an average, usually the arithmetical mean, about which the variation occurs … Useful english dictionary
coefficient of variation — A measure of investment risk that defines risk as the standard deviation per unit of expected return. Bloomberg Financial Dictionary … Financial and business terms
coefficient of variation — (CV) the standard deviation divided by the mean, sometimes multiplied by 100; a unitless quantity indicating the variability around the mean in relation to the size of the mean … Medical dictionary
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variation — [ varjasjɔ̃ ] n. f. • 1314; lat. variatio 1 ♦ État de ce qui varie au cours d une durée; suite des changements qui affectent ce qui varie. ⇒ changement, évolution. « La variation du regard en vitesse, en direction, en durée » (Valéry). « La… … Encyclopédie Universelle
Variation — means a change within population* Biodiversity * Genetic diversity, differences within a speciesPhysics: * Magnetic variation, difference between magnetic north and true north, measured as an angle * Variation (astronomy), any perturbation of the … Wikipedia
