Historical Volatility

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The Economic Times  1 hr ago  Comment 
The JP Morgan executive says use of P-Notes is common across EMs and restricting their use here would be a negative for Indian markets
Daily FX  7 hrs ago  Comment 
The US Dollar is stuck in a tight range versus the Euro and other major counterparts. A pickup in short-term volatility suggests a breakout is possible in the week ahead.
SeekingAlpha  8 hrs ago  Comment 
Benzinga  8 hrs ago  Comment 
Bitcoin enthusiasts say the cryptocurrency represents an important opportunity to offer financial services to unbanked populations across the world. They claim its benefits are far reaching and allow seamless cross-border transactions at a...
Wall Street Journal  Jul 27  Comment 
The Swiss bank posted a second-quarter profit that exceeded forecasts led by its wealth-management business, and said it is in a comfortable position despite impending new capital requirements and volatile markets.
The Economic Times  Jul 27  Comment 
"With physical assets such as gold and real estate underperforming, more household savings are likely to move into financial products such as MFs"
Motley Fool  Jul 26  Comment 
If you own shares of these companies, here's why you're looking at a volatile week ahead.
The Hindu Business Line  Jul 26  Comment 
RIL (₹1,025) The stock was volatile in the previous week and closed almost on a flat note. It formed a doji candlestick pattern in the weekly chart by marking an i...
The Economic Times  Jul 26  Comment 
Quarterly numbers from blue-chips including ITC, Maruti Suzuki and ICICI Bank would set the tone for the stock market.




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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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