Historical Volatility

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SeekingAlpha  7 hrs ago  Comment 
The Times of India  9 hrs ago  Comment 
USA-OBAMACARE/STOCKS:Hospital, Medicaid insurer shares set for volatility as health vote nears
Yahoo  Mar 22  Comment 
Shares of Snap Inc (SNAP.N) jumped 9 percent on Wednesday after the owner of messaging app Snapchat received a second analyst "buy" rating following a red-hot public listing this month and with Wall Street skeptical about its lofty valuation. The...
Clusterstock  Mar 22  Comment 
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Clusterstock  Mar 22  Comment 
The US stock market is barely moving.  The S&P 500 closed up, or within 1% of its opening price, for more than 10o days in a row.  Just about every measure of volatility is at a multi-year low.  In other words, it's all quiet. That has...
The Economic Times  Mar 22  Comment 
High volatility is a normally occurring, yet unpredictable, event, at least insofar as timing is concerned. Market declines of 10% occur almost annually , and even multiple times within a calendar year.This is simply within the normal range of...
Benzinga  Mar 21  Comment 
EXACT Sciences Corporation (NASDAQ: EXAS) shares plummeted 6 percent Tuesday on news that the company had backed out of an early-May Deutsche Bank conference. An Exact representative attributed the cancellation to scheduling conflicts. In...




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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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