How to Make Standard Deviation Volatility Chart

The creation of a volatility chart is about knowing how the trade has change over a specific period of time.

Data preparation

Before inserting the volatility chart, you have data similar to this:

data set to create a volatility chart in Excel

Stdev formula

Calculate Standard Deviation in Excel on a daily basis. Click on the third cell from return (1) and write, for example =STDEV(D6:D7), and then enter. (3).

Standard Deviation

Click on the small square under the calculated result in the previous step twice.

return

Mark whole Changes column.

mark column

 

Note: This was chosen because it was based on how the stock performed at the end of the day.

Inserting volatility chart

Click on insert (1), lines (2), and line chart with marker (3).

insert marker chart

Click on the chart (the design will show), and Click select data.

click select data

Click edit on the horizontal area.

edit horizontal data

Select all the dates, then press ok and ok.

select date

Right-click on the Dates (1) and choose Format Axis (2).

Format Axis

Change label position to low.

low labels

Click on the series (blue line).

blue line

Click on Add chart element (1), Error Bars (2), and Standard Deviation (3).

error bars standard deviation

On the right side, scroll down to choose custom (1), and specify value (2).

specify value

Select the range in "Return" (1), for both Positive and negative error values (2), and press ok.

select return range

 

In conclusion, it depends on the range you choose to base the standard deviation on. As I based it on the changes, you could choose to use the closing or any other range you choose. But, the insertion of a volatility chart is about the stock's being successful in the market.

Our volatility chart looks like this:

Volatility Chart ready