Historical Volatility

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Forbes  7 hrs ago  Comment 
Traders and investors are struggling with low volatility markets. Here are four ways to succeed when markets are seemingly not moving.
Benzinga  9 hrs ago  Comment 
Historical data suggest dividend-paying stocks are often less volatile than their non-dividend paying counterparts. So perhaps it's not surprising many investors dividends and the low volatility factor to come together. The intersection of...
The Times of India  Feb 21  Comment 
London-based bank HSBC reported Tuesday that annual profit slumped by more than 80 per cent following a year of "unexpected economic and political events'' that contributed to volatile markets and influenced investment activity.
The Economic Times  Feb 21  Comment 
On Tuesday, we expect a modestly positive start, but at the same time, expect some volatility to creep in as we move ahead in the session.
The Economic Times  Feb 21  Comment 
Tuesday is likely to see huge volatility, even as technical indicators suggest the bulls are firmly in control of the market.
Motley Fool  Feb 20  Comment 
Healthcare bargains abound for patient long-term investors.




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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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