Historical Volatility

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Channel News Asia  1 hr ago  Comment 
Volatility could well be in the cards for Wall Street again early this fall, but not for the same reason stocks got rattled in February.
MarketWatch  12 hrs ago  Comment 
Italy’s newly installed prime minister serves up a reminder that Rome isn’t fading away as a source of turmoil and volatility so quickly.
MarketWatch  Jun 5  Comment 
First-half volatility is setting the stage for another leg higher by stocks, says Canaccord Genuity equity strategist Tony Dwyer, who is raising his year-end target for the S&P 500 to 3,200 from 3,100 and is now setting a 2019 target of 3,360.
MarketWatch  Jun 5  Comment 
Major digital currencies erase declines and were trading higher in early afternoon Tuesday action.
The Hindu Business Line  Jun 5  Comment 
Zinc futures contract on the Multi Commodity Exchange (MCX) has been volatile in the past week. The contract rose to a high of ₹213 per kg initially
The Hindu Business Line  Jun 5  Comment 
Bank Nifty fell sharply on Monday ahead of the RBI policy announcement tomorrow. Banking stocks turned bearish as traders expect a rate hike.Bank Nift
Yahoo  Jun 4  Comment 
Off and on the price chart, it’s a classic situation of he said, she said in an ever-volatile Micron Technology, Inc. (NASDAQ:MU). Within Wall Street’s analyst community both bears and bulls came out in MU stock last week. Taking the first...




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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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