Historical Volatility

Benzinga  Oct 21  Comment 
Shares of Square Inc (NYSE: SQ) have had a very volatile year but are ultimately down more than 14 percent. And, while they experienced a rebound in August, they went back to declining at the end of the month and have since lost more than 9...
MarketWatch  Oct 21  Comment 
Ernesto Abella is the ‘Filipino Mike Pence,’ White House spokesman Josh Earnest said, joking that, like the Republican vice president, he frequently has to walk back comments made by his volatile boss.
newratings.com  Oct 21  Comment 
NEW DELHI (dpa-AFX) - India-based IT services provider Mindtree Ltd.(MINDTREE, 532819) reported that its net profit for the second-quarter was $14.1 million down 39.1% from the prior year. "The volatile macroeconomic environment has resulted in...
The Economic Times  Oct 21  Comment 
Domestic companies are mostly refraining from covering their foreign currency risks, a move that could turn out to be disastrous if fresh volatility sets in.
The Australian  Oct 21  Comment 
Qantas says it’s in a position to grow despite rising oil prices and global economic and political volatility.
Financial Times  Oct 20  Comment 
Concerns rising that fast-growing sector could be exacerbating market volatility
MarketWatch  Oct 20  Comment 
The euro is lower against the dollar on Thursday, following volatile morning trading that came on comments from European Central Bank President Mario Draghi, who said there had been “no discussion” of extending the ECB’s bond-buying program.
Benzinga  Oct 19  Comment 
"Everyone talks about the Presidential election because it’s sexy, but I think Wall Street right now is looking to see what will happen with the Congressional election, the House and the Senate," TD Ameritrade Chief Strategist JJ Kinahan...
newratings.com  Oct 18  Comment 
WASHINGTON (dpa-AFX) - After initially showing a lack of direction, treasuries moved modestly higher over the course of the trading session on Tuesday. Bond prices moved to the upside in late morning trading before moving roughly sideways...


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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