Historical Volatility

SeekingAlpha  3 hrs ago  Comment 
Reuters  3 hrs ago  Comment 
The global market volatility of the past month that sent U.S. stocks to their worst quarter in four years shows no signs of letting up just because the calendar turned to October.
Financial Times  3 hrs ago  Comment 
Growing pipeline of initial public offerings despite elevated equity volatility
MarketWatch  5 hrs ago  Comment 
Ollie's Bargain Outlet Holdings Inc. was upgraded to outperform from neutral at Credit Suisse. The firm cites Ollie's second-quarter same-store sales results, up 7.8% for its first quarter as a public company, which beat the estimate consensus of...
MarketWatch  6 hrs ago  Comment 
U.S. policymakers should change their rhetoric from financial stability to "resilience," said Loretta Mester, the president of the Cleveland Fed, on Friday. In a speech at the Boston Fed conference on financial turmoil and monetary policy, Mester...
Benzinga  9 hrs ago  Comment 
The title of this article may be a question you have asked yourself at one time or another. You may have been in a trade with everything going well, when all of a sudden it seems that the bottom drops out. All premium is gone. At that...
The Australian  Oct 2  Comment 
The sharemarket has ended a sharply volatile week of trade with a 1pc fall, heading back towards the 5000-point level.
SeekingAlpha  Oct 2  Comment 
WA Business News  Oct 2  Comment 
Recent BNiQ data has revealed a number of large transactions by company directors, including the founder of Perth-based contractor Decmil Group and his son, chief executive Scott Criddle, who have invested a combined $1.43 million on the...
Financial Times  Oct 1  Comment 
Weak manufacturing figures unsettle mood


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.

Related Articles

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki