Noise chart

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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.