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Definition of 'Dispersion'
A term used in statistics that refers to the location of a set of values relative to a mean or average level.
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Investopedia explains 'Dispersion'
In finance, dispersion is used to measure the volatility of different types of investment strategies. Returns that have wide dispersions are generally seen as more risky because they have a higher probability of closing dramatically lower than the mean. In practice, standard deviation is the tool that is generally used to measure the dispersion of returns.
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Find out how to adjust your portfolio when the market fluctuates to increase your potential return.
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How do you choose a fund with an optimal risk-reward combination? We teach you about standard deviation, beta and more!
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Use these calculations to uncover the risk involved in your investments.
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