Comparing the coefficient of variation. An Industry Example. A customer call center was evaluating the performance of two of their associate teams concerning the time they spend on a customer call.

To compare the volatility of two or more data sets, the Coefficient of Variation should be used. According to Modern Portfolio Theory, investment risk is defined by - and measured by - volatility.

Advantages of the Coefficient of Variation The COV's chief advantage is its applicability to any given quantifiable data, thus paving the way for a comparative analysis between two unrelated entities.