The standard deviation is a statistic that measures the dispersion of a dataset relative to its mean. It is calculated as the square root of the variance. The standard deviation is defined as the square root of the variance based on the deviation of each data point from the mean.
If the data points are further apart from the mean, there is a higher deviation within the data set; therefore, the higher the standard deviation, the more spread out the data set is.

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion in a set of data points. It shows how much individual values in a dataset differ from the mean (average). A low standard deviation indicates that most data points are close to the mean, while a high standard deviation suggests that data points are more spread out.

In trading and finance, standard deviation is often used to assess the volatility of a financial asset. A higher standard deviation means greater price fluctuations, signaling higher risk. It's calculated as the square root of the variance, which is the average of the squared differences from the mean. Standard deviation helps traders and analysts understand how unpredictable or stable a market or investment might be.