Syntax
VAR.S(value1, [value2, ...])
| Parameter | Description |
|---|---|
| value1 | Parameter of the VAR.S function. |
| [value2 | (Optional.) Parameter of the VAR.S function. |
| ...] | Parameter of the VAR.S function. |
Examples
Sample variance of returns
Formula
=VAR.S(C2:C253)
Calculates the variance of daily stock returns over one trading year (252 days). Used in portfolio risk calculations.
Process variance
Formula
=VAR.S(D2:D100)
Estimates the variance of a manufacturing measurement from 99 sample items.
Variance ratio
Formula
=VAR.S(A2:A50) / VAR.S(B2:B50)
Computes an F-statistic to compare the spread of two samples. Values near 1 suggest similar variability.
Common Errors
#DIV/0!
Fewer than 2 numeric values. At least 2 data points needed for sample variance.
#VALUE!
Non-numeric direct arguments.
Tips
Identical to VAR
VAR.S and VAR produce the same result. The .S suffix clarifies it is the sample version.
Relationship to STDEV.S
VAR.S = STDEV.S^2. If you want the result in original units rather than squared units, use STDEV.S.
Portfolio variance
In finance, portfolio variance combines individual asset variances weighted by allocation. VAR.S of returns is a key input to Modern Portfolio Theory.
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