Historical Volatility

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MarketWatch  3 hrs ago  Comment 
Martha Stewart Living Omnimedia Inc. shares surged more than 20% Thursday as they resumed trading after being halted for volatility. The move came after The Wall Street Journal reported that Sequential Brands is close to making a deal to buy the...
Channel News Asia  5 hrs ago  Comment 
US Fed Chair Janet Yellen has stressed that any rate hike would hinge on a recovery in the US labour market. Analysts say that when that happens, local interest rate benchmarks could see some volatility before settling down.
Mondo Visione  9 hrs ago  Comment 
 Download this month's dashboard A significant majority of our volatility measures are up since our last report.  Four weeks ago the VIX® reached its lowest level for 2015, closing at 12.11.  It closed last night at 14.50. ...
The Hindu Business Line  Jun 18  Comment 
Hong Kong stocks ended Thursday lower, with investors’ risk appetites subdued by a possible Greek default and increasing volatility in the mainland’s equity market.But the Hong Kong exchang...
OilVoice  Jun 17  Comment 
Worried about a volatile oil and gas market Paradigm Capitals Ken Lin advises waiting for quality companies to take a hit before swooping in to stock up and then taking profits on the way up to avo
The Economic Times  Jun 17  Comment 
Sanjay Dutt of Quantum Securities says that with the policy risk out of the way, investors should use every opportunity to build position in the market.
Yahoo  Jun 17  Comment 
Asia shares inched higher while the dollar held firm on Wednesday as investors awaited the Federal Reserve's latest take on the U.S. economy and interest rates.
Daily FX  Jun 17  Comment 
The end of the most recent bout of market congestion may be Fed-derived - regardless of their efforts.




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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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