What is 'Dispersion'
Dispersion is a statistical term describing the size of the range of values expected for a particular variable. In finance, dispersion is used both in studying the effects of investor and analyst beliefs on securities trading, and in the study of the variability of returns from a particular trading strategy or investment portfolio. It is often interpreted as a measure of the degree of uncertainty, and thus risk, associated with a particular security or investment portfolio.
BREAKING DOWN 'Dispersion'
For example, the familiar risk measurement, beta, measures the dispersion of a security's returns relative to a particular benchmark or market index. If the dispersion is greater than that of the benchmark, then the instrument is thought to be more risky than the benchmark. If the dispersion is less, then it is thought to be less risky than the benchmark.

Benchmark Error
A situation in which the wrong benchmark is selected in a financial ... 
Volatility
1. A statistical measure of the dispersion of returns for a given ... 
Spread To Worst
The difference in overall returns between two different classes ... 
Variable Interest Rate
An interest rate on a loan or security that fluctuates over time, ... 
Variability
The extent to which data points in a statistical distribution ... 
Active Return
The percentage gain or loss of an investment relative to the ...

Investing
Volatility
Learn more about this statistical measure and how it affects the dispersion of returns. 
Investing
Goldman Sachs: Dispersion Creating Opportunities
Goldman Sachs latest research piece 
ETFs & Mutual Funds
Should You Buy Stock Or An ETF?
Not all investors are the same. By the same token, not all investment types are suited for each individual investor. 
Managing Wealth
How to Use a Benchmark to Evaluate a Portfolio
What is an investment benchmark and how is it used to evaluate the risk and return in a portfolio. 
ETFs & Mutual Funds
5 Ways To Measure Mutual Fund Risk
These statistical measurements highlight how to mitigate risk and increase rewards. 
Managing Wealth
3 Themes That Will Shape Markets This Quarter
Fears of a global recession hit markets hard at the start of the year. Yet the anxiety has waned. 
Managing Wealth
What Investors Need to Know About Returns in 2016
Last year wasn’t a great one for investors seeking solid returns, so here are three things we believe all investors need to know about returns in 2016. 
ETFs & Mutual Funds
Benchmark To Show Winning Returns
You can't win if you don't keep score. Read on to learn how to measure your returns. 
Managing Wealth
How to Select and Build a Benchmark to Measure Portfolio Performance
How to select and build a benchmark to measure the performance of your investment portfolio 
ETFs & Mutual Funds
What's a Benchmark?
A benchmark is a standard investors choose to gauge the performance of their portfolios.

What variables are most important when making a prediction through sensitivity analysis?
Explore sensitivity analysis and how this method considers different variables to determine a course of action based on statistical ... Read Answer >> 
What is the relationship between alpha, beta, and rsquared when analyzing a fund?
I'm curious about alpha, beta, and rsquared. I have researched funds where the fund outperforms the index, but the alpha ... Read Answer >> 
What are some common measures of risk used in risk management?
Learn about common risk measures used in risk management and how to use common risk management techniques to assess the risk ... Read Answer >> 
What should I use as a benchmark for my smallcap stock portfolio?
When creating a stock portfolio, it is important to have a benchmark against which you can compare your returns. Comparing ... Read Answer >> 
What's the relationship between r squared and beta?
Learn about the relationship between Rsquared and Beta. Explore how the concepts are related and often used in conjunction ... Read Answer >> 
How is the standard error used in trading?
Understand how the standard error is used in statistics and what it measures. Learn how the standard error is used in trading ... Read Answer >>