Historical Volatility

Forbes  5 hrs ago  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  6 hrs ago  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  11 hrs ago  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  12 hrs ago  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...
The Straits Times  Apr 22  Comment 
April 23, 2015 1:41 AM MORE details on the assistance schemes that smaller businesses have access to as they tackle the challenges of a volatile and uncertain global economy were unveiled yesterday.
Benzinga  Apr 22  Comment 
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. S&P 500 index futures were trading lower by five points at 2086 in Wednesday's session. In a volatile session, the index rallied to 2098.50 in pre-market...


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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