A noise chart is a financial charting tool. A noise chart is intended to show past volatility of an investment. Noise charts are useful when used to compare investments over exact same time periods.
The curve of a noise chart shows the investment, were it "perfect" meaning the total holding period return (HPR) achieved is averaged on a daily basis throughout the period. The color (usually red) shows the volatility from that perfect line, allowing you to see exactly how volatile the investment was. Less color shows less volatility.
Noise charts were invented by financial guru and statistician Zachary Gronich in 2004.
Famous quotes containing the words noise and/or chart:
“For twenty-five centuries, Western knowledge has tried to look upon the world. It has failed to understand that the world is not for the beholding. It is for hearing. It is not legible, but audible. Our science has always desired to monitor, measure, abstract, and castrate meaning, forgetting that life is full of noise and that death alone is silent: work noise, noise of man, and noise of beast. Noise bought, sold, or prohibited. Nothing essential happens in the absence of noise.”
—Jacques Attali (b. 1943)
“Perhaps in His wisdom the Almighty is trying to show us that a leader may chart the way, may point out the road to lasting peace, but that many leaders and many peoples must do the building.”
—Eleanor Roosevelt (1884–1962)