Updated: Jul 20, 2021
How to use the Standard Deviation Function in Excel to calculate the riskiness and the minimum needed return on an investment you wish to invest in? For today's tutorial, we are taking Tesla’s December Stock Price to calculate their return Standard Deviation.
We will also show you how to convert your Standard Deviation function into an API at the end of the video.
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How to use the Standard Deviation Function in Excel to calculate the riskiness and the minimum needed return on an investment you wish to invest in. We are taking Tesla’s December Stock Price to calculate their return Standard Deviation for today's tutorial. You can also download and export your selected company CSV report at finance.yahoo.com. Without further ado, let us dive in.
How to use Standard Deviation Function
After exporting Tesla December stock price, we will need to find out the Return Value. To find the Return Value, we will need to take the next adjust close day minus the current adjusted close day. Let me show you how to do it. Select Cell I7, type in equal, open parentheses. Select Cell G7, type in the minus, select Cell G6 and close parentheses. Next, type in the forward-slash and select G6. Lastly, hit return.
Now let us find the remainder Return Value. Move your cursor to the lower right of Cell I7. Once your cursor turns into a plus sign. Double click on it. You would get a hold list of Return Value. We will add in 0 in I6 as there is no Adjust Close value before 1 December 2020.
After we have found the Return Value for Tesla. Let us find the average return. We will be using the average function to find the average return. If you are interested in finding out more about the “average function”. We had made a video on it. You can find the link above. Now, let us select Cell L5, type in equal, Average and open parentheses. Select Cell I6 and drag your cursor to Cell I26. Close parentheses and hit return.
Lastly, we will be finding the Standard Deviation for Tesla. Select Cell L7, type in equal STDEV.S, open parentheses. In Excel, there are Standard Deviation .P and Standard Deviation .S. The “P” represents the entire population. While “S” represents the sample. In this example, we are using sample. Next, select I6 and drag your cursor to Cell I26. Close parentheses and hit return.
There you have it, the Standard Deviation function for Excel. If you have any excel formula you want us to teach, let us know in the comment section below. Don't forget to subscribe, hit the bell button and turn on the notification to have more free excel function tutorial. But, before you go, we have a bonus clip for you. I will be turning this Excel spreadsheet into an API. Stay tuned to see how the magic works.
Convert Standard Deviation function into Application Programming Interface (API)
I will be using AlchemyJ Studio Excel Add-in to turn this Standard Deviation Function Excel into an API. To do this, I will need AlchemyJ Excel installed and with a pre-set of rules. I will select the AlchemyJ ribbon, select Generate API and click on Generate API. The file is now converting. Okay, your API is ready.
Let us find the Standard Deviation of Tesla for 3 days in Cell K9. I will input the Standard Deviation Function in L9. Let’s see what we will be getting. Okay, we have gotten 0.03551659. Next, I will now launch this openAPI that AlchemyJ generates. I will expand this tab, and select try it out. I will input the Return Value from 1 December 2020 to 3 December 2020 and see if I can get 0.03551659. Yes, we got it.
AlchemyJ Studio Excel Add-in turns your Excel business model into API. This way, you can integrate your Excel model into other applications. You can download AlchemyJ Studio Excel Add-in for free at alchemyj.io. And once again, thank you for watching. So which Excel function you wish to be converted into an API? Let us know in the comment section below. Lastly, don't forget to subscribe, hit the bell button and turn on the notification. See you soon.