Historical Volatility

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Daily FX  6 hrs ago  Comment 
Volatiltiy picked up this past week - though not evenly - and pushed the markets towards developing serious trends.
Daily FX  7 hrs ago  Comment 
The biggest drop in equities in nearly two years this past week positioned the benchmark currencies and pairs on the verge of major breakouts. Will the volatility and trend shift be made permanent this week?
CNNMoney.com  Apr 11  Comment 
2014 is already stacking up to be twice as volatile as last year
The Economic Times  Apr 11  Comment 
US stocks slid in a volatile session, with the Nasdaq closing below the 4,000 mark for the first time since early February.
Reuters  Apr 11  Comment 
U.S. stocks slid in a volatile session on Friday, with the Nasdaq closing below the 4,000 mark for the first time since early February.
Reuters  Apr 11  Comment 
U.S. stocks slid in a volatile session on Friday, with the Nasdaq closing below the 4,000 mark for the first time since early February.
Wall Street Journal  Apr 11  Comment 
A gauge of U.S. inflation surged in March, driven by volatile categories that may not push broader price measures out of their long stretch of sluggishness.
Wall Street Journal  Apr 11  Comment 
A gauge of U.S. inflation surged in March, driven by volatile categories that may not push broader price measures out of their long stretch of sluggishness.
Yahoo  Apr 11  Comment 
U.S. stocks slid in a volatile session on Friday, with the Nasdaq closing below the 4,000 mark for the first time since early February. Selling accelerated late in the afternoon, with the biotech and other ...
Yahoo  Apr 11  Comment 
U.S. stocks slid in a volatile session on Friday, with the Nasdaq closing below the 4,000 mark for the first time since early February. Selling accelerated late in the afternoon, with the biotech and other ...




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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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