Historical Volatility

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MarketWatch  12 hrs ago  Comment 
reach Asia, sending NIkkei and Aussie shares lower. China shares see another volatile day of trading.
The Hindu Business Line  Jan 17  Comment 
The changeability of markets, exacerbated by currency volatility, has caused CEOs to turn to a greater mix of countries.
Japan Today  Jan 16  Comment 
Japan's core machinery orders fell 5.1% in November from the previous month in a sign could turn cautious on capital expenditure, government data showed on Monday. The fall in core orders, a highly volatile data series regarded as an indicator...
The Economic Times  Jan 16  Comment 
Neeraj Kumar Gupta says that ETFs is one of the most attractive products in the developed financial markets and it is becoming very popular in India.
The Hindu Business Line  Jan 15  Comment 
With recovery still a few quarters away, investors should stick with banks that have shown a consistent growth in earnings over the last several quarters. In volatile times these banks will offer comf...
Yahoo  Jan 15  Comment 
Global oil prices will witness "much more volatility" in 2017 even though markets may rebalance in the first half of the year if output cuts pledged by producers are implemented, the head of the International Energy Agency (IEA) said on Sunday. "I...
Financial Times  Jan 15  Comment 
Growing pound volatility bets could suggest further weakness
Mondo Visione  Jan 13  Comment 
The OFR released today the Financial Markets Monitor for Q4. The monitor says, U.S. long-term interest rates have risen from all-time lows in July, driven by stronger global economic data, higher inflation expectations, and growing expectations...
The Economic Times  Jan 13  Comment 
While TCS posted in-line growth and margin, we remain concerned as growth was driven by volatile markets, which entail the potential of springing a negative surprise going forward.




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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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