Calculating an investment's standard deviation can help you determine how much its price may rise or fall in the future. Find the formula here.

Learn the standard deviation formula, how to calculate it, and its importance in data analysis. Step-by-step guide with examples.

Key Points Use Excel to calculate daily returns and standard deviation to gauge stock volatility. Annualize volatility by multiplying daily standard deviation by the square root of 252.

Annualized volatility = standard deviation (volatility) multiplied by the square root of the periods in the year. For example, you might calculate the volatility of daily stock returns.