Would it be better to have higher or lower Volatility?

  • 27 February 2023
  • 3 replies

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 28 February 2023, 20:05

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Userlevel 5

Hey @Shadi! Thanks so much for posting- this is a great question! 💫

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 @lindsay 

Userlevel 5

Wonderful, @Shadi! Please don’t hesitate to reach out should you have any other questions! 😊