Historical Volatility

RECENT NEWS
Benzinga  Sep 23  Comment 
Virgin America Inc (NASDAQ: VA) has had a great year, up more than 52 percent in the last six months. After more than five months of low volatility, shares tumbled more than 5.2 percent in the past couple of weeks. The Vetr crowd seems to...
Motley Fool  Sep 23  Comment 
The VIX is a key component of using options strategies correctly.
SeekingAlpha  Sep 23  Comment 
Clusterstock  Sep 22  Comment 
Existing home sales fell 0.9% at a seasonally adjusted annual rate of 5.33 million in August, according to the National Association of Realtors.  Economists had forecast that sales of existing condos, co-ops, and single-family homes rose by...
Motley Fool  Sep 22  Comment 
These three stocks are about as safe as it gets.
The Economic Times  Sep 22  Comment 
With these moves, Maruti Suzuki hopes to rein its royalty payments to sub-5% range in the coming years. The carmaker's royalty payment to Suzuki has ranged between 5.3% and 6.2%.




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

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