## Volatility is Usually Standard Deviation, Not Variance

In finance, volatility is usually understood as **standard deviation**.

Of course, variance and standard deviation are very closely related (standard deviation is the square root of variance), but the common interpretation of volatility is **standard deviation of returns**, and not variance.

Here you can find more details:

Is Volatility and Standard Deviation the Same?

## Variance vs. Standard Deviation

For more information about the difference between variance and standard deviation and for step-by-step calculation of both, see: