Coefficient of variation is a statistical measure of the dispersion associated with data points in a data series across the mean.
A useful figure for comparing the degree of variation collected from one of data series completely to another, even if the means are drastically not the same as each other.
The lower the ratio associated with standard deviation to mean return, better your risk-return tradeoff. Realize that if the expected return within the denominator of the calculations is negative or zero, the ratio will not seem sensible. the coefficient of variation (CV) is a normalized measure of dispersion of your probability distribution or volume (frequency) distribution.