Software for standard Deviation

Discussion in 'Options' started by jasonc, Oct 11, 2007.

  1. jasonc

    jasonc

    i was wondering if people use certain software to calculate a stocks standard deviation over a certain time frame. If so what is it. thanks
     
  2. trade ideas
     
  3. segv

    segv

    In order of complexity:

    Pencil and Paper
    Calculator
    Microsoft Excel
    Basic Language
    S-Plus
    Robert Engle
     
  4. It's easy with Excel.

    1. Import the data into a new spreadsheet
    2. Go to Tools > Data Analysis > Descriptive Statistics
    3. Enter the relative information into the input range and output range, Summary Statistics, and 95% confidence level
    4. Press OK and your in business

    Note: You may have to install the Analysis Toolpack Add-In first.

    P.S. You'll note that all distributions from real world financial data have some degree of skew and kurtosis. Guys with Nobel Prizes in economics have not figured out how to accurately model these phenomena yet, and neither will you.
     
  5. Very true.
    It's a useful tool, but also a very dangerous one. You absolutely have to know what you're doing.
     
  6. jasonc

    jasonc

    thanks for all the ideas, i am still just learning but after reading about pricing models and such i was wanting to try to create some real models with current information just for practice.
     
  7. I dont know about what software people use for Std Dev. When I first learned it the software was a piece of paper, a pencil and a hand calculator. It does not hurt to know how to do it yourself before you go blindly into software
     
  8. Midas

    Midas

  9. erniej

    erniej

    Excel function:

    =STDEV(x:y)

    where x is the starting cell and y is the end cell of the group of cells you're calculating
     
  10. Bowgett

    Bowgett

    #10     Oct 12, 2007