Historical Volatility

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The Economic Times  1 hr ago  Comment 
The strengthening of the USD in recent times has caused some element of volatility in the currency markets across the globe.
MarketWatch  6 hrs ago  Comment 
Police clear the most volatile protest site in Hong Kong and arrest several student protest leaders in an aggressive 24-hour operation that marks a new phase in the two-month-long occupation.
The Hindu Business Line  8 hrs ago  Comment 
Pre-open trade: The Indian benchmark indices are likely to be volatile as investors roll over positions on expiry of November contracts. On Wednesday, the Nifty ended up 12.65 points or 0.1 pe...
Benzinga  Nov 26  Comment 
Nu Skin Enterprises, Inc. (NYSE: NUS) spiked lower Wednesday afternoon following a tweet from Sam E. Antar: Nu Skin Inventory Fraud? Elizabeth Craig v Provo City, Nu Skin - Amended Complaint $NUS https://t.co/yYTylR03gM #ScribdDocs —...
TheStreet.com  Nov 26  Comment 
WASHINGTON (AP) - Orders to U.S. factories for long-lasting manufactured goods rose in October, but a key category that tracks business investment plans declined sharply for a second straight month. The Commerce Department says orders for durable...
Motley Fool  Nov 26  Comment 
Keep it simple.
The Times of India  Nov 26  Comment 
The benchmark Sensex today recovered 48 points to 28,386.19 after realty scrips, led by DLF, rose as government approved hiking floor area ratio in Delhi and FMCG shares, including ITC, jumped after yesterday's slump.
The Hindu Business Line  Nov 26  Comment 
Sensex gained 48 points after the sharp fall in crude oil prices last night. The benchmark index opened on the lower side at 28322 against the previous close of 28338. It touched a high o...
The Economic Times  Nov 26  Comment 
'Once the volatility is over, market could settle a little lower than little higher but there are things which are going up. So avoid banks for the next week.'




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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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