Tag: Coefficient of Variation (CV)

The Coefficient of Variation (CV) is a key statistical measure used to compare the variability between data sets of different sizes. The CV measures the relative dispersion of data around the mean, and is typically expressed as a fraction or percentage. By determining the CV, researchers can quickly determine the spread and uniformity of data sets—helping them to identify outliers, understand the relationship between variables, and more. As a result, the Coefficient of Variation is a vital tool for research and data analysis.

Formula

Coefficient of Variation Formula in Forex Trading: A Guide

Coefficient of Variation Formula in Forex Trading: A Guide
5 min read

The Coefficient of Variation (CV) is a statistical measure commonly used in Forex trading and analysis to measure price volatility. The formula for calculating a currency’s CV is simply the standard deviation of its prices relative to the mean of those prices. This allows traders to compare different currency pairs and determine which one has more intra-day volatility as measured over a certain period. Knowing this information can help traders set their risk parameters, and choose the instrument that best fits their trading strategies.