Historical Volatility

Motley Fool  7 hrs ago  Comment 
Record management fees from the investment management company couldn't entirely offset weakness in net income.
Financial Times  9 hrs ago  Comment 
A jump in the Japanese currency underlines the volatility rattling markets
SeekingAlpha  10 hrs ago  Comment 
Yahoo  11 hrs ago  Comment 
Dow has been clearing the decks ahead of its $130 billion merger with traditional rival DuPont (DD.N) by slashing administration costs and laying off employees. Dow plans to slash costs by $300 million this year. Dow's strategy to focus on...
The Hindu Business Line  Apr 28  Comment 
'Positive triggers would be good monsoon, likely earnings upgrade in H2, improvement in the asset quality of banking system'
WA Business News  Apr 28  Comment 
The trend in dwelling sales activity in Perth recorded in Reiwa’s weekly Real Facts across the first three months of 2016 suggests sales increased during the month of January, stabilised in February, with volatility in sales seen during March.
Benzinga  Apr 27  Comment 
Investors are hearing plenty this year about the boffo performances turned in by low volatility exchange-traded funds. They are also hearing quite a bit about the resurgence of emerging markets stocks and ETFs. Marry those two themes and the...
Reuters  Apr 27  Comment 
Billionaire hedge fund manager Dan Loeb believes that recent market volatility still offers "excellent opportunities" to make money despite a "catastrophic" period for...
Benzinga  Apr 27  Comment 
Twitter Inc (NYSE: TWTR) shares are trading lower by $2.58 (14.6 percent) at $15.17 in Wednesday's session. Although the company had EPS beat of a nickel, revenues came in light and the company guided revenues much lower for Q2. It has traded...
Yahoo  Apr 27  Comment 
Europe's big oil producers had been expected to report their worst quarterly earnings in the current downturn but instead BP, Total and Statoil have delivered share-boosting first-quarter results. The British oil major does not disclose figures...


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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