Standard deviation is a statistical concept to express the degree of dispersion, an important index to express accuracy, and the most commonly used quantitative form to reflect the degree of dispersion of a group of data.

Standard deviation is often used to calculate according to the fluctuation of fund net value over a period of time. The greater the standard deviation, the more drastic the rise and fall of net worth, and the greater the risk. A larger standard deviation means that most values are quite different from their average values, while a smaller standard deviation means that most values are close to the average values.

By analyzing the standard deviation of enterprise investment activities, it is helpful for enterprises to evaluate the risk of this investment activity and avoid unnecessary losses caused by investment risks.

Formula meaning of standard deviation:

Subtract the sum of squares of all numbers, divide the result by the number of this group (or the number minus one, that is, the variance), and then find the root. The number is the standard deviation of this group of data.

The dark blue region is the range of values within one standard deviation of the average value. In normal distribution, the proportion of this range is 68.2% of the total value (that is, 1). For normal distribution, the ratio within two standard deviations (dark blue and blue) is 95.4%. For normal distribution, the proportion within plus or minus three standard deviations (dark blue, blue and light blue) is 99.6%.