Historical Volatility

The Hindu Business Line  8 hrs ago  Comment 
Amid volatility, short-term trend has been up for both indices. This can continue in future
The Economic Times  Feb 18  Comment 
The undercurrent remains very much intact and we certainly expect the benchmark to test the 8,900-8,950 levels as it approaches its double top resistance zone.
The Hindu Business Line  Feb 17  Comment 
RBI needs to ensure that the hard earned gains with regard to macro-economic stability is maintained and is able to withstand global financial volatility, said Governor Urjit Patel in an interview to...
Reuters  Feb 17  Comment 
The RBI needs to ensure that the hard earned gains with regard to macro-economic stability are maintained and able to withstand global financial volatility, said Governor Urjit Patel in an interview to CNBC-TV18 news channel.
Motley Fool  Feb 17  Comment 
The gun and outdoor gear maker has a plan for the future.
Motley Fool  Feb 16  Comment 
The software engineering company declined after a decidedly in-line quarter. Here's what investors need to know.
Forbes  Feb 15  Comment 
Ernesto Ramos: The BMO Low Volatility Equity Fund’s investment approach centers on the fact that lower-risk stocks generally do not underperform higher-risk stocks. They tend to outperform over the longer term and this is also referred to as the...
Financial Times  Feb 15  Comment 
Dairy group expects squeeze from higher milk prices and ‘volatile’ economic conditions
Yahoo  Feb 15  Comment 
"I think our 3 percent revenue guidance reflects just a cautious outlook toward the macros globally, as well as a reflection of what is a more volatile world," Chief Financial Officer Hugh Johnston said on a call with analysts. Johnston's comments...


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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