Historical Volatility

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The Economic Times  3 hrs ago  Comment 
Arvind Mayaram says the measure could help build confidence, especially in emerging markets, while the facility need not actually be put to use.
The Economic Times  9 hrs ago  Comment 
By focusing the allocation so narrowly on large institutions, the banks hope to prevent volatile trading of its shares after expected trading begins on Friday.
Canada.com  10 hrs ago  Comment 
SNC-Lavalin Group Inc. may be a good bet for investors looking to escape the return of market volatility this month
FierceBiotech  12 hrs ago  Comment 
For evidence of Wall Street's ongoing hesitance to embrace biotech startups, look no further than ProQR Therapeutics and Foamix Pharmaceuticals, two IPO debutantes with diametric fortunes on the market.
Yahoo  Sep 18  Comment 
U.S. home construction plunged in August, led by steep decline in the volatile apartment category. But single-family house construction, a larger and more stable portion of the market, fell only modestly. ...
newratings.com  Sep 18  Comment 
WASHINGTON (dpa-AFX) - Crude oil prices are little changed Thursday morning, with traders looking ahead to some key U.S. economic data, including a report on weekly jobless claims. Crude oil futures for October delivery are down $0.09 or 0.10...
The Economic Times  Sep 18  Comment 
The overnight sterling/dollar volatility rose to 34.75% on Thursday as investors stepped up hedging against fluctuations over the next 24 hrs.
The Economic Times  Sep 18  Comment 
'We are already in some kind of a consolidation phase and that is going to be the trend for the remaining part of the year.'
Reuters  Sep 17  Comment 
U.S. stocks edged higher in volatile trading on Wednesday after the U.S. Federal Reserve renewed its pledge to keep interest rates near zero for a "considerable time" and repeated concerns over slack in the labor market, standing firm against...




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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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