DEFINITION of 'Analysis Of Variances  ANOVA'
An analysis of the variation between all of the variables used in an experiment. Analysis of variance is used in finance in several different ways, such as to forecasting the movements of security prices by first determining which factors influence stock fluctuations. This analysis can provide valuable insight into the behavior of a security or market index under various conditions.
BREAKING DOWN 'Analysis Of Variances  ANOVA'
This type of analysis attempts to break down the various underlying factors that determine the price of securities as well as market behavior. For example, it could possibly show how much of a security's rise or fall is due to changes in interest rates. A ttest and ftest is used to analyze the results of an analysis of variance test to determine which variables are of statistical significance.

Analysis Of Variance  ANOVA
A statistical analysis tool that separates the total variability ... 
MeanVariance Analysis
The process of weighing risk against expected return. Mean variance ... 
Variance
The spread between numbers in a data set, measuring Variance ... 
Budget Variance
A periodic measure used by governments, corporations or individuals ... 
Portfolio Variance
The measurement of how the actual returns of a group of securities ... 
Cost Control
The practice of managing and/or reducing business expenses. Cost ...

Markets
Explaining Variance
Variance is a measurement of the spread between numbers in a data set. 
Managing Wealth
Calculating Portfolio Variance
Portfolio variance is a measure of a portfolioâ€™s volatility, and is a function of two variables. 
Trading
What's a TTest?
TTest is a term from statistics that allows for the comparison of two data populations and their means. The test is used to see if the two sets of data are significantly different from one another. ... 
Investing
Exploring The Exponentially Weighted Moving Average
Learn how to calculate a metric that improves on simple variance. 
Investing
Using Historical Volatility To Gauge Future Risk
Use these calculations to uncover the risk involved in your investments. 
Trading
What's a Sensitivity Analysis?
Sensitivity analysis is used in financial modeling to determine how one variable (the target variable) may be affected by changes in another variable (the input variable). 
Markets
Understanding Regression
Regression is a statistical analysis that attempts to predict the effect of one or more variables on another variable. 
Trading
Fundamental Analysis For Traders
Find out how this method can be applied strategically to increase profit. 
Investing
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Trading
Understanding Trend Analysis
Trend analysis is the use of past performance to predict future price movement of a security.

Is variance good or bad for stock investors?
Learn how high variance stocks are good for some investors and how diversified portfolios can reduce variance without compromising ... Read Answer >> 
What is price variance in cost accounting?
Understand what price variance is in relation to cost accounting. Learn the most common way price variance arises and how ... Read Answer >> 
How much variance should an investor have in an indexed fund?
Learn more about the significance of variance in index funds, its value as a measure of volatility and other common analytical ... Read Answer >> 
What is the difference between standard deviation and variance?
Understand the difference between standard deviation and variance; learn how each is calculated and how these concepts are ... Read Answer >> 
How is an unfavorable variance discovered?
Learn how unfavorable variance is discovered through defining budget numbers, such as standard rates for labor and materials, ... Read Answer >> 
How can I measure portfolio variance?
Find out more about portfolio variance, the formula to calculate portfolio variance and how to calculate the variance of ... Read Answer >>