A z-score (also called a standard score) gives you an idea of how far from the mean a data point is. More technically, it’s a measure of how many standard deviations below or In investing and trading, Z-scores are measures of an instrument's variability and can be used by traders to help determine volatility. A Z-Score is a
In statistics, a z-score tells us how many standard deviations away a given value lies from the mean. We use the following formula to calculate a z-score: z = (X – μ) / A z-score measures the distance between a data point and the mean using standard deviations. Z-scores can be positive or negative. The sign tells you whether the
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