Historical Volatility

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The Hindu Business Line  Jan 21  Comment 
Bellwether indices continue to test key hurdle and volatility may prolong
Forbes  Jan 21  Comment 
But the truth is, keeping your money in America is still the best way to get the most reliable, least volatile and strongest returns—and you can do it while protecting yourself from big market meltdowns, like we saw in 2008.
Clusterstock  Jan 20  Comment 
Wall Street veteran and former Citigroup CFO Sallie Krawcheck, who is currently the CEO and cofounder of Ellevest, explains how to invest in this volatile market after Trump's presidential victory. Editor's Note: This interview was originally...
newratings.com  Jan 20  Comment 
BB Biotech weathers a challenging past year - portfolio performs well in in the volatile fourth quarter of 2016 DGAP-News: BB BIOTECH AG / Key word(s): Quarterly / Interim Statement BB Biotech weathers a challenging past year - portfolio performs...
MarketWatch  Jan 19  Comment 
Market anxiety has been rising in anticipation of Friday’s inauguration of President-elect Donald Trump, and traders are taking to the instruments that can provide a hedge in volatile times, pouring money into the exchange-traded products that...
MarketWatch  Jan 19  Comment 
A so-called volatility squeeze and a revival in company earnings bode well for U.S. equities — for 2017, at least, writes Ivan Martchev.
SeekingAlpha  Jan 19  Comment 




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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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