Historical Volatility

MarketWatch  2 hrs ago  Comment 
Digicel Group Ltd. said late Tuesday it is not going forward with a planned initial public offering at this time. "Given our growth outlook, an IPO for Digicel was optional and predicated on achieving fair value for the company," said Denis...
Wall Street Journal  5 hrs ago  Comment 
PepsiCo’s profit plunged 73% on a $1.36 billion Venezuelan impairment charge and revenue fell 5.2% in the third quarter as foreign currencies weakened against the dollar amid overseas volatility.
The Hindu Business Line  6 hrs ago  Comment 
Weak macros in US and Europe, currency volatility may impact growth, say analysts
Financial Times  10 hrs ago  Comment 
Computerised systems do not cope well with big rush of orders at times of high volatility
Financial Times  10 hrs ago  Comment 
Chief executive highlights possibility of increased market volatility
newratings.com  12 hrs ago  Comment 
WASHINGTON (dpa-AFX) - Early indications suggest that Wall Street stocks may open Tuesday's session slightly lower after S&P raked up gains in the past five sessions. Asian stocks closed higher earlier in the global trading day amid hopes of...
Equitymaster  Oct 6  Comment 
Posted by Equitymaster        After having witnessed a fairly volatile day, buying activity intensified in the post noon trading session, with the markets closing on a firm note. The BSE-Sensex closed higher by about 147 points, while...
Financial Times  Oct 6  Comment 
‘Fear gauge’ falls below 20 for first time since August volatility


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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