Historical Volatility

RECENT NEWS
Market Intelligence Center  Apr 25  Comment 
Despite a pronounced volatility in trading, major U.S. benchmarks are on their way of hitting new all-time highs. A volley of downbeat economic data – be it job or manufacturing reports – made the chance of an earlier-than-expected rate hike...
Benzinga  Apr 24  Comment 
Coffee futures have moved up Friday. July Coffee is trading at 143.75. Chatter about wide ranges and volatile activity continues. Market talk about currency values and weather is constant. Uncertainty about crop production in the Southern...
Benzinga  Apr 24  Comment 
Benzinga  Apr 24  Comment 
In a report published Friday, JPMorgan analysts downgraded the rating on Best Buy Co Inc (NYSE: BBY) from Overweight to Neutral, while reducing the price target from $45 to $40. The analysts believe that a lackluster start to the year for sales...
Forbes  Apr 23  Comment 
Sales of newly-constructed single-family homes fell by 11.4% in March compared to February, a volatile monthly report revealed Thursday. But the sales rate was 19.4% higher than the pace in March 2014.
Wall Street Journal  Apr 23  Comment 
Stanley Black & Decker managed to log profit and revenue growth in its first quarter, as demand from the construction industry and higher volumes and pricing helped offset currency volatility.
Reuters  Apr 23  Comment 
The BSE Sensex fell for a sixth session in seven on Thursday in volatile trade, dragged down by blue chips as investors chose to pause despite clarifications from the finance ministry over the government's taxation policies.
The Hindu Business Line  Apr 23  Comment 
Nifty April Futures (8,425) Trading in the Nifty futures contract has been volatile today. The contract opened with a huge gap-up at 8,500. However, it failed to sustain at h...
Wall Street Journal  Apr 22  Comment 
Ameriprise Financial Inc. said its first-quarter earnings fell 2% as its advice-and-wealth-management business continued to post strong results but equity market volatility hurt results.
MarketWatch  Apr 22  Comment 
Oil futures settled lower on Wednesday following a volatile session. The U.S. government reported a 15th straight weekly rise in crude supplies, but data also showed that domestic output inched lower and gasoline inventories fell more than...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

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.


Related Articles

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki