Historical Volatility

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SeekingAlpha  Jul 19  Comment 
By Colin Lea: Overview The last 12 months has seen global investors chasing yield, often regardless of the underlying value of the assets being invested in and with disregard to or complacency of underlying risk. This has led some investors...
SeekingAlpha  Jul 19  Comment 
By Kapitall: On Wednesday, Dallas Federal Reserve Bank President Richard Fisher told an audience at USC that the Fed should make major adjustments to its monetary policy in the coming months. The combination of low interest rates and an abundance...
Yahoo  Jul 19  Comment 
Volatility spiked on Thursday after the tragedy of a downed civilian jetliner in Ukraine and the mounting death toll in Gaza and Israel interrupted the summer trading slumber. The VIX posted its biggest one-day percentage increase since April...
Forbes  Jul 18  Comment 
The volatility certainly increased last week as Thursday?s decline was the largest in several months. The decline was consistent with the divergences in many of the daily technical studies that have been recently observed. This combined with...
Reuters  Jul 18  Comment 
Volatility spiked on Thursday after the tragedy of a downed civilian jetliner in Ukraine and the mounting death toll in Gaza and Israel interrupted the summer trading slumber.
SeekingAlpha  Jul 18  Comment 
By Gary Bourgeault: For the struggling New York Times (NYSE:NYT), its latest quarter was a decent one by its recent low performance standard, as digital subscribers continue to grow while print circulation shrinks. High costs continue to weigh on...
Forbes  Jul 18  Comment 
(Kitco News) - With a continued absence of physical demand and a light economic calendar for next week, gold market participants will likely keep an eye on geopolitical events which have a tendency to produce at least short-term volatility in the...
The Straits Times  Jul 18  Comment 
July 19, 2014 12:57 AM THE prospect of a stronger US dollar, elections in Indonesia, reforms in India and tightening monetary policies in Malaysia and the Philippines are among key events that will drive Asian currencies in the second half of the...
SeekingAlpha  Jul 18  Comment 
By Bret Jensen: The market suffered its first one percent decline on the S&P 500 in months yesterday as the double whammy of a downed passenger jetliner in Eastern Ukraine and Israel sending troops into Gaza rocked the market. The geopolitical...
Clusterstock  Jul 18  Comment 
Bitcoin is most often discussed as a volatile digital currency.  But where Bitcoin's real value lies is as a payments technology that has the potential to revolutionize the legacy payments industry.  Bitcoin offers merchant a low-cost...




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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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