Histogram Definition

Histogram Definition

Histogram Definition

The histogram definition is a graphical representation of the density or frequencies over a certain data set. Many usually use histograms graphs in finance for market analysis.

Histograms Explanation

A histogram exposure is related to a data set usually in finance. The data set is usually the entire existence of the market and where prices are set. For example, the histogram might use a data set from the S&P 500 on expected returns. Thus for each frequency that the market hit that return it will show up as part of a bar graph. The higher the bar graph the more frequent the market hits that particular return.
The histogram can also show the density amount or find data that provides somewhat of a percentage range of where the stock or market index is likely to hit. Returns are not the only use for the histogram within the market. In fact, you can use histogram graphs for just about any aspect of a stock, bond, or market index. Some of these factors may include the standard deviation or covariance in measuring risk, or returns in different stocks or markets.
To learn more financial leadership skills, download the free 7 Habits of Highly Effective CFOs.
histogram definition

[box]Strategic CFO Lab Member Extra
Access your Flash Report Execution Plan in SCFO Lab. The step-by-step plan to manage your company before your financial statements are prepared.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs[/box]
histogram definition
See Also:

Financial Instruments
Finance Beta Definition
Efficient Market Theory
Required Rate of Return
Covariance

ARTICLES YOU MIGHT LIKE

The Struggles of Private Company Accounting

Hiring the right accountant  When I meet a business owner operating at a successful $10 million in revenue, they often mention, “My CPA”… I immediately know that CEO/Entrepreneur is referring to their Tax CPA.  That is because one thing that all Entrepreneurs have in common is that they must file a tax return.  So, from

Read More »

IN CRISIS? GET A STRATEGIC CFO! – CEO Blindspots Podcast

Friend of the firm, Birgit Kamps, recently had Strategic CFO President, Dan Corredor, as a guest on her podcast, CEO Blindspots. CEO BLINDSPOTS HOST: Birgit Kamps. She was speaking five languages by the age of 10, and lived in five countries with her Dutch parents prior to becoming an American citizen. Birgit’s professional experience includes starting

Read More »

SHRM calls ICHRA the 401K for Group Health Benefits

Fed-up with group health insurance? ICHRA is the new way to offer great health benefits and avoid ACA penalties, SHRM calls it the 401K for group health benefits.  In 2020 the Department of Labor, HHS and IRS changed the rules for employer health benefits. They changed the Affordable Care Act mandates and penalties for every

Read More »

JOIN OUR NEXT SERIES

Financial Leadership Workshop

MARCH 28TH-31ST 2022

SHARE THIS ARTICLE

JOIN THE NEXT STRATEGIC CFO™ SERIES

Strategic CFO™ Financial Leadership Workshop
The Art of the CFO®

Days
Hours
Min
Sec

September 12-15th 2022