Historical Volatility

Financial Times  7 hrs ago  Comment 
More than a dozen planned listings postponed or withdrawn
The Hindu Business Line  8 hrs ago  Comment 
The long-term outlook for Maruti Suzuki (₹3,164.6) remains positive, as long it stays above ₹2,640. However, in the short term the stock could see some volatility. The stock finds immediat...
The Hindu Business Line  8 hrs ago  Comment 
Tata Steel (₹459) The stock of Tata Steel gained more than 2 per cent in the midst of volatile trade last week. It continues to hold its significant support in the zone between ₹44...
The Hindu Business Line  Oct 26  Comment 
MIT scientists led by an Indian-origin researcher have developed a machine-learning algorithm that can predict the price of the notoriously volatile cryptocurrency Bitcoin. Researchers at...
Wall Street Journal  Oct 26  Comment 
The recent market volatility is enough to make even seasoned investors feel like ping-pong balls. How to keep your head when stocks fall more than 200 points one day, only to gain that and more the next.
Clusterstock  Oct 24  Comment 
FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisers.  Don't Freak Out, The Recent Volatility Is Normal (Charles Schwab) Everyone's been talking about the recent spike in...
Canada.com  Oct 24  Comment 
But analysts are warning that the market is in a volatile phase as share prices start to recover from a sharp selloff earlier this month
Benzinga  Oct 24  Comment 
The recent volatility in the stock market has brought to light many unique products that take advantage of investor fear. This includes inverse, leveraged and VIX futures funds such as the iPath S&P 500 VIX Short-Term Futures ETN (VXX). While...


Volatility refers to the tendency of prices to change unexpectedly, usually as a response to new information or changes in demand for the investment. Volatility can be defined as an investment's tendency to move up and down in price over the latest n periods.

A security with high volatility has bigger fluctuations in price compared to a security with low volatility. The more quickly a price changes up and down, the more volatile it is. As such, volatility is often used as a measure of risk.

For example: A stock whose price went up 10% yesterday and went down 25% today is more volatile than a stock which increased 2% in both days.

Historical volatility is calculated by looking at past changes in stock price. The standard deviation of percentage changes in price is used to calculate observed volatility within the considered timeframe.

Historical Volatility, which looks at the past, is distinct from Implied volatility, which represents expectations about future fluctuations in price and is calculated by looking at the prices of options on the underlying investment.

Volatility is also different from Beta, which is a measure of how the stock price reacts to changes in a broad market index, such as the S&P 500.

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