Sxx Variance Jun 2026

A hedge fund manager running a portfolio of volatile tech stocks might use SXX variance to determine "volatility drag." When a stock swings wildly, the SXX metric swells rapidly, signaling that the geometric return of the portfolio is being eroded by the oscillation.

Sxx=∑xi2−(∑xi)2ncap S sub x x end-sub equals sum of x sub i squared minus the fraction with numerator open paren sum of x sub i close paren squared and denominator n end-fraction sxx variance