Historical Volatility

Agrimoney.com  7 hrs ago  Comment 
The cattle market will be "substantially less volatile" next year, while disease and El Nino could rally prices, the bank says
Yahoo  11 hrs ago  Comment 
The stock market will likely experience heightened volatility in 2016, portfolio manager Larry Glazer tells CNBC. Here's why.
Equitymaster  Nov 30  Comment 
Posted by Equitymaster        After having witnessed a fairly volatile day with the index crossing the dotted line a multiple times, the Indian stock markets ended the day marginally in the green amid mixed international cues. The...
The Economic Times  Nov 30  Comment 
In the next six months, the equity market is bound to witness strong volatility as the earnings recovery is getting delayed.
The Economic Times  Nov 30  Comment 
"There could be outflows; no doubt about that. But I am not sure whether it will be a knee-jerk reaction or a sustained phenomenon."
The Economic Times  Nov 30  Comment 
China stocks ended flat after a highly volatile session, with major indexes swinging wildly in and out of negative territory following Friday's more than 5 percent slump.
The Hindu Business Line  Nov 30  Comment 
Nifty December Futures (7,965) The Nifty futures contract has begun the week on a volatile note. The contract rose to a high of 7,994.5 from its intraday low of 7,952.4 and has rev...
The Hindu Business Line  Nov 30  Comment 
The dollar edged up to a fresh 8-1/2-month high against a basket of global currencies on Monday, while the prospect of further stimulus this week by the European Central Bank kept the euro on the...


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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