Historical Volatility

SeekingAlpha  5 hrs ago  Comment 
The Economic Times  7 hrs ago  Comment 
They are the best friends of equity investors, as they guarantee stable returns even in a volatile market, much like a dog which is considered the man’s best friend.
Motley Fool  Aug 2  Comment 
You don't actually make or lose money until you sell your investments.
Clusterstock  Aug 1  Comment 
(Reuters) - Bank of America Corp said its business, results and operational model could be adversely affected if economic volatility stemming from Britain's vote to exit the European Union continues. The Brexit vote has introduced "complexities...
Benzinga  Aug 1  Comment 
Timing when a particular investment factor will be in style and when it will fall out of favor isn't an easy task. Making the task even harder is that, by some estimates, the low volatility and momentum factors are increasingly correlated with...
The Hindu Business Line  Aug 1  Comment 
Barring palmolein, which rose by ₹2, all other edible oils ruled steady tracking thin volatility in futures amid slack physical demand. Local refineries kept their rates unchanged. Liberty was quotin...
Forbes  Aug 1  Comment 
There's an old saying on Wall Street that stocks take the stairs up and the elevator down.
The Economic Times  Aug 1  Comment 
While technical charts do not show any conviction in the market, the index is likely to stay volatile in the coming sessions.


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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