Standard Deviation risk metric
- Main Problem: The user, JayG, is unclear about what the standard deviation number on Fidelity’s website represents, specifically regarding the dataset used to calculate it.
- Solution Discussed: Fidelity’s representative, Shawn, requested JayG to provide a specific link to the page in question to help clarify the standard deviation metric.
- Follow-up: Fidelity confirmed they are still investigating JayG’s inquiry and encouraged him to reach out for updates.
Here’s the full thread
On Fidelity web site, what is the standard deviation number a standard deviation of?
Fidelity web site gives some risk metrics for individual securities. One is standard deviation. Explanation of is only a vague description. I’d like to know what the number represents. I know what a standard deviation is. I know how to calculate it. But I don’t know what set of numbers is used to produce the number on the Fidelity web site. I don’t need to have risk explained to me. I don’t need to be told that a higher standard deviation numbers mean higher variability (of something). I’m asking specifically, what is the set of real numbers that the number on the web site is a standard deviation of?
Hello there @JayG. Thanks for your question.
To begin with, could you share with us what page on the website you are looking at? Would you mind providing us with a link to review?
We’ll be sure to follow up with you here. 🟢
Sorry. Discord gave an message, “This can’t be sent because it contains content blocked by this server. Please revise and try again” when I try to send you a link an example page. But if you browse to the page for any ETF or mutual fund, say “SPY”, and choose the “Performance & Risk” tab, you’ll see a panel called “Month-End Average Annual Total Returns And Risks”. The standard deviation is shown there. The title gives a hint that the Standard Deviation might be the standard deiviation of a list of “Average Annual Total Returns.” That’s just a guess. But even if I’m right, I don’t know what an Average Annual Total Return is. I can think of about a dozen plausible numbers that phrase could apply to. Also the numbers shown are way too large to be returns.
Is my question still in play? No rush. Just want to make sure it didn’t slip between the cracks.
Hi there, @JayG. We are still investigating this for you. When we have an answer, we’ll respond to you here.
Please feel free to continue to reach out periodically for updates. We’ll be around to help. 🟢