Formula for Variance in Forex Trading: A Guide

5 min read

The variance in Forex trading is an important measure of risk that can be used to identify potential trading opportunities. The mathematical formula for calculating variance in the Forex market is: Variance = ( (Price1 – Average Price)2 + (Price2 – Average Price)2 + (Price3 – Average Price)2 + … )/ No. of Observations. This formula compares the difference between the current price of a currency pair and the average price of that pair over a given period of time. By calculating the variance, traders can identify changes in trending and volatility and determine which currency pairs are experiencing the greatest price fluctuations.


Variance of a Portfolio Formula: An Academic Guide

1 min read

The variance of a portfolio formula forex is a mathematical calculation used to estimate the risk and potential return of an investment portfolio. It is calculated by taking the squared deviation of each individual asset’s return compared to the portfolio’s average return. This helps investors determine which asset combinations are most likely to have the least amount of risk and the most potential return for their investment. The variance of a portfolio formula forex can also be used to compare the performance of different portfolios to each other, allowing investors to make better decisions about their investments.