Historical Volatility

RECENT NEWS
Benzinga  Nov 21  Comment 
Aviva Plc (ADR) (NYSE: AV) shares were volatile Friday amid merger reports. SkyNews reported that "Aviva has agreed to buy Friends Life Group in a £5bn-plus deal that will create a pensions provider with 16 million UK...
Clusterstock  Nov 21  Comment 
By Francesco Canepa LONDON (Reuters) - The big story of recent stock market investment has been volatility, and the opportunities that sharp price swings can bring for those with strong nerves. But good news is emerging now for those who prefer...
MarketWatch  Nov 21  Comment 
The holiday vibe has already started washing over this market. Trading volumes are stalled, volatility is sleepy, and the relatives are packing bags full of judgment and guilt for their Thanksgiving visit.
The Economic Times  Nov 21  Comment 
There are two changes we have observed during the week gone by which have the potential to change the texture of this market.
MarketWatch  Nov 20  Comment 
Volatility in the foreign-exchange market reaches its highest point in 10 months, according to J.P. Morgan’s forex volatility index, and these changes are indicative of a fundamental shift in how investors are trading currencies in the fourth...
MarketWatch  Nov 20  Comment 
A surprisingly strong reading from the Philadelphia Fed index Thursday helps Treasury yields recover from early-morning declines.
The Hindu Business Line  Nov 20  Comment 
The natural gas futures contract traded on the Multi Commodity Exchange (MCX) has been trading volatile over last couple of weeks. The sharp fall from the high of ₹279.3 per mmBtu recorded...
USAToday.com  Nov 20  Comment 
A market strategist at J.P. Morgan Funds peers into his crystal ball for 2015.




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

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