# HISTORICALRISK
## Description
The following risk model estimates covariances based on equally-weighted historical observations.
## Syntax
The following describes the function signature for use in Microsoft Excel's formula bar.
```excel-formula
=HISTORICALRISK(type, assetReturns, dataPeriodicity)
```
### Input(s)
| Argument | Description |
| ------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **type** | Required. Enumeration string to specify calculation type:
"risk", "sigma", or "stdev"
"correlation", "corr", or "rho",
"covariance", "covar", or "cov"
|
| **assetReturns** | Required. Time series or matrix of asset returns. |
| **dataPeriodicity** | Optional. Periodicity of the data, used for annualization. If you do not enter the argument, it defaults to 1.
e.g. Daily = 255, Monthly = 12, Yearly = 1, Quarterly = 4.
|
### Output(s)
Depending on the specified output *type*, the function will return the respective vector of risk estimates (annualized standard deviations), correlation matrix, or a covariance matrix.
## Example
{% file src="" %}
Example Workbook: HISTORICALRISK
{% endfile %}