We’ve received an insight on one of our metrics which indicates the volatility as 67%. I would like to know what does that mean? Would it be better for a product to have higher or lower volatility? Thanks!
Best answer by lindsay
View original
Userlevel 4
Hey
Volatility is measured by comparing the current average value of a metric to the previous average value. If there’s an increase in volatility, it indicates there was a quick change where a metric’s value has significantly spiked or plummeted.
67% indicates a higher volatility, but whether that’s a good or bad thing really depends on the metric and the change! For example, if there’s an increase in errors, that wouldn’t be a desired percentage. If there’s an increase in conversions, that would more likely be a desired percentage.
If this percentage applies to a positive change, it may be a good idea to come up with strategic measures to ensure you maintain the value of this product/metric, resulting in a much lower volatility in the future!
I hope this helps you gain a better understanding of volatility, and please let me know if you have any more questions!
This answers my question. Thanks so much
Userlevel 4
Wonderful,
Reply
Enter your username or e-mail address. We'll send you an e-mail with instructions to reset your password.