Deutsche Fassung
Risk & loss

Volatility

Volatility measures how widely a portfolio value swings around its mean, expressed as a percentage per year. It says nothing about direction: a portfolio that only rises can still be highly volatile. Below 10 % counts as calm; pure equity portfolios usually sit between 15 and 20 %.

How restless is your portfolio?16.0% p.a.
Calm
Typical for portfolios with a large bond or cash allocation. The value moves in narrow bands, at the cost of a lower long-term return expectation.
Mixed
The usual range for balanced portfolios of equities and bonds. Setbacks are noticeable but rarely dramatic.
Equity-typical
Where broadly diversified equity portfolios and world ETFs sit. Individual years with double-digit setbacks come with the territory.
Markedly elevated
Common for single stocks, sector bets, crypto or leveraged products. Check whether a handful of positions is driving the number.

How it is calculated

σ[p.a.] = standard deviation( daily returns ) × √252

The daily returns of a portfolio scatter with a standard deviation of 1.0 % around their mean. A trading year has roughly 252 days, and volatility grows with the square root of time.

Daily dispersion
1.0 %
Trading days
252
Square root
15.87
Volatility p.a.
15.9 %

What the number does not tell you

  • It has no sense of direction. Upward and downward moves count the same. A portfolio in a strong rally gets the same volatility as one in a crash of equal size.
  • It understates extreme days. Standard deviation comes from the bell curve. Real markets produce more crash and rally days than that assumption allows. How deep those days go only shows in value at risk.
  • It depends on the window. A window containing March 2020 delivers a far higher volatility than one ending just before it. Only compare values measured over the same period.
  • It is not a loss figure. 16 % volatility does not mean a 16 % loss is coming. For the question of how much setback actually had to be endured, maximum drawdown is the right number.

Related metrics

Sharpe ratioReturn per unit of volatility, after deducting the risk-free rate.Maximum drawdownNot volatility, but the deepest decline actually endured.Value at risk and CVaRHow bad an ordinary bad day looks.Annualised return (CAGR)Total return converted into an average year.

How Evergrova calculates it

Your portfolio volatility sits in the metric band on the Performance & Risk page. A rolling chart additionally shows how it has changed over time.

Data basis: standard deviation of daily returns over the selected window, annualised with √252.

View the demo portfolio

Common questions

What is a good level of volatility?

There is no good volatility, only a fitting one. It is the price of expected return: anyone who cannot sit through 15 to 20 % of swing will not collect the long-run return of an equity portfolio either. What matters is whether you can hold the course.

Why is my volatility higher than the MSCI World?

Usually concentration. A few large positions, a sector or country bet, or a crypto allocation push the number up. Looking at how your positions correlate with each other shows where the movement comes from.

Why 252 and not 365?

Because exchanges are closed at weekends and on holidays. A year holds roughly 252 trading days, and price movement only happens on those.

Last reviewed: 2026-08-08

This text is general information. It is neither investment advice nor a recommendation. Metrics describe past periods and allow no conclusion about future performance.