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:
“The English may not like music, but they absolutely love the noise it makes.”
—Thomas Beecham (1879–1961)
“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)