It's 25 standard deviations because they only take like a year's data into account. So anything that happens and seems out of the ordinary for that particle dat

It's 25 standard deviations because they only take like a year's data into account. So anything that happens and seems out of the ordinary for that particle date range will show up as 25 standard deviations. If you've read about the LTCM crash, they keep citing absurd standard deviations. Basically they didn't have any historical datasets that they were basing their models off of. It's completey ridiculous that they talk about such absurd numbers.