Historical Volatility

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The Economic Times  4 hrs ago  Comment 
We see a very volatile situation in Greece at the moment. There is no mechanism on the Grexit at the moment, says Rebecca Harding.
Wall Street Journal  6 hrs ago  Comment 
Money managers moved out of bets on U.S. crude prices over the past two months as the volatility in the commodity’s price has plummeted.
The Economic Times  7 hrs ago  Comment 
Analysts said the stock market could witness a selloff after Greek Prime Minister Alexis Tsipras called a referendum on July 5.
Wall Street Journal  9 hrs ago  Comment 
Last week’s moves by the PBOC—and the market’s response—underline not just investors’ dependency on signals from a central bank that often fails to clarify its intentions but also how hard it is for China’s leaders to steer credit.
The Hindu Business Line  Jun 28  Comment 
Randstad India provides a full spectrum of human resource services such as regular, temporary and contract staffing, permanent placements, professionals search and selection, in-house and H...
The Economic Times  Jun 28  Comment 
"Time has come (for divestment of PSUs). The markets were volatile, now the markets have stabilised," the official said.
Forex News  Jun 27  Comment 
The past trading week was dominated by the debt problems of Greece and attempts to find a solution that would be acceptable both for the indebted country and for its creditors. Yet no agreement has been reached, and with the June 30...
Benzinga  Jun 26  Comment 
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. King Digital Entertainment PLC (NYSE: KING) shares were trading lower $0.11 (0.7 percent) at $13.85 in Friday's session. The issue will be closely...
Benzinga  Jun 26  Comment 
In a report published Friday, Makor Capital analysts initiated coverage of Wix.Com Ltd (NASDAQ: WIX) with a Buy rating and a price target of $30, following a meeting with CFO Lior Shemesh. "Wix is a super high growth company that provides a web...




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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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