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How is volatility calculated?
Answer
At XE, volatility is measured by applying the standard deviation of the logarithmic daily returns, expressed in a percentage score.
Daily returns are the gain or loss of a currency pair in a particular period. At xe.com, we take the values of two consecutive days at 00:00 UTC. That is why we call it daily return. Then, we apply a logarithm to the ratio between those two values. It is a common way to measure change in the financial industry.
Ex: ln (valueDay2 / valueDay1) is the logarithmic return between day2 and day1. This value tells us if the currency pair has moved a lot or not.
In statistics, the standard deviation is a measure that is used to quantify the amount of variation of a set of data values. A low standard deviation indicates that the data points tend to be close to the mean of the set, while a high standard deviation indicates that the data points are spread out over a wider range of value.
We apply this standard deviation to the daily logarithmic returns we calculated during a given time period (30 days, 90 days etc.)
Expressing a value in a percentage score means we multiply it by 100 before showing it to you.
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read moreAs time went by, this blog was developed for many different purposes. Last time, I had a lot of pleasure in sharing some of my Lego-related hobbies. However, I will mostly upload a blog about bikes and their development in the next few months! Recently, I have so much into ebike cargo. They say this type of bike can replace the car! And I am very into it since my place is crowded with traffic jams! The video above showed a funny situation: I started the review from Brooks's handle! And after nine years! It's still an excellent bike handle and not even destroyed!
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Hi, hi, hi. So, it's been a while for the last couple of weeks since I have considered buying a cargo bike. The reason is that I am often trapped in a traffic jam because I can't get faster in my car.
read moreIndonesia has launched Southeast Asia’s first-ever bullet train, a high-speed rail line connecting two of its largest cities.
Congrats! Indonesia launched Southeast Asia’s first bullet train.
Custom LEGO Transformers Devastator
My faith in humanity is restored! OK, that’s a bit overboard – but you couldn’t blame me if you see an incredibly, exquisitely and wonderfully executed custom LEGO Transformers Devastator such as this by Alex Jones. I feel transported to the 80’s once again, with the same intense childhood wonder when I first saw the Constructicons combine and become the formidable Devastator.
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