Square every deviation from the mean, add them up, then divide by n − 1 for a sample or n for a population. The square root of the result is the standard deviation.
Variance is the foundation of dispersion statistics. In finance the standard deviation of returns is the volatility, and portfolio variance — built from variances and covariances — is the engine of diversification.
ARIA builds the full variance-covariance matrix across your holdings to measure true portfolio risk — the step beyond a one-series variance.
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