Standard Deviation: What It Means For Your Investments and Risk Management

When we work with people to come up with an effective investment strategy, one of the key tools that can help understand and manage the ups and downs of the market is the concept of standard deviation. In this episode, Wade breaks down this crucial metric and explains its significance in investing.

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of values. In the context of investing, it helps measure how much the returns of an investment fluctuate from its average over time. Join us to learn how we can use this to better understand risk, measure volatility in the stock market, and apply it to portfolio management.

 

Here’s some of what we discuss in this episode:

• What standard deviation is and how it helps us with investing.
• Using standard deviation to help understand risk.
• How we help our clients match their investment choices to their personal comfort level of risk.
• Measuring volatility in the stock market.

 

Get in touch with Chessman Wealth: https://www.chessmanwealth.com/ 

The opinions voiced in The Money Knight podcast with Wade Chessman of Chessman Wealth Strategies are for general information only and are not intended to provide specific advice or recommendations for any individual. Past performance is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk, including possible loss of principal. No strategy assures success or protects against loss. To determine what may be appropriate for you, consult with your attorney, accountant, financial or tax advisor prior to investing.

Investment advisory services offered through CWM, LLC, an Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors.