Historical Volatility

The Economic Times  8 hrs ago  Comment 
FPIs building on out of money call options on dollar rupee forwards fear a correction in rupee.
The Economic Times  10 hrs ago  Comment 
Volatility is expected to fall based on volatility model ‘GARCH’ in final week of expiry.
Motley Fool  Jun 23  Comment 
Investors have to balance huge growth potential against important risks to the camera tech specialist's business.
Benzinga  Jun 23  Comment 
Bellicum Pharmaceuticals Inc (NASDAQ: BLCM) was at its volatile best all this week. After a 14-percent gain Monday, the stock pulled back slightly Tuesday and retreated by less than 2 percent Wednesday. It rallied over 10 percent Thursday, only...
Forbes  Jun 23  Comment 
Snap has had a relatively rocky few months since its March IPO, with its Q1’17 user growth coming in below expectations and its stock witnessing significant volatility amid Facebook’s moves to quickly copy its best features. That said, Snap...
The Hindu Business Line  Jun 23  Comment 
Edible oils after extending loss, ruled steady at the end of the day on Friday tracking range bound thin volatility in futures amid cautious mood ahead of GST to be implemented from 1st July. Du...
The Hindu Business Line  Jun 23  Comment 
The Saudi organised boycott of Qatar spells a further unsettling of the geopolitics of a volatile region


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