Historical Volatility

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SeekingAlpha  1 hr ago  Comment 
By Morningstar: By Michael Rawson Low-volatility equity strategies were all the rage two years ago. Investors were looking to tiptoe back into the equity market but could not stomach the volatility, and two newly minted exchange-traded funds...
DailyFinance  2 hrs ago  Comment 
Filed under: Identity Theft, Market News, Biotechnology, Internet, Security Volatile trading on Wall Street is ramping up the heated debate between the bulls and bears. The bears say the market is due -- overdue really -- for a correction...
SeekingAlpha  3 hrs ago  Comment 
ByJosh Arnold: Yesterday's atrocious sell-off of virtually everything was pretty ugly if you're long anything. It was difficult to find anything that was green yesterday, except volatility. No exception to this carnage was Bank of America (BAC),...
The Economic Times  4 hrs ago  Comment 
The midcap IT is extremely unpredictable when it comes to numbers, there is high degree of volatility within those numbers.
Mondo Visione  9 hrs ago  Comment 
Chicago Board Options Exchange® (CBOE®) today reported that first-day trading volume for CBOE Short-Term Volatility IndexSM(VXSTSMSM Index or "Short-Term VIX Index") options with weekly expirations totaled an estimated 3,134 contracts. "We...
SeekingAlpha  Apr 11  Comment 
By Jeff Miller: I planned to take tonight off since it is my Birthday and Mrs. OldProf is preparing my favorite dinner. On the other hand, I like to post whenever there is a market development that will get a lot of media buzz and contribute to...
SeekingAlpha  Apr 10  Comment 
By Matthew Smith: With the Federal Reserve having had dovish commentary in their minutes which were released yesterday commodities saw increased interest during the session. A number of those names which rose sharply are giving back some of their...
guardian.co.uk  Apr 10  Comment 
Leading shares seek direction amid mixed economic signals and worries about Ukraine With the big four supermarkets already being squeezed by competition from discounters Aldi and Lidl, the prospect of an all out price war seems to be growing ever...
Benzinga  Apr 10  Comment 
Analyst Scott Krasik believes Deckers (NASDAQ: DECK) is “entering a less volatile phase in its growth marked by new products, gross margin expansion, a timeline to expense leverage, and a formal plan to drive shareholder returns.” The $92...




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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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