Historical Volatility

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SeekingAlpha  6 hrs ago  Comment 
Forex News  Mar 27  Comment 
The euro ended Friday virtually flat against the US dollar and the Japanese yen while against the Great Britain pound the currency closed below the opening level but trimmed most of the daily loss.(...)Read the rest of Euro Ends Session...
TheStreet.com  Mar 27  Comment 
  NEW YORK (TheStreet) -- Stocks have had a rough week, with the broader market closing lower in each of the past four trading sessions. However, that's not stopping Scott Wren, senior global equity strategist at Wells Fargo Investment...
MarketWatch  Mar 27  Comment 
A conflict seems to be brewing between low liquidity in financial markets and the Federal Reserve’s desire for more flexibility on interest rates, says a Deutsche Bank analyst.
Reuters  Mar 27  Comment 
U.S. stocks held near the unchanged mark on Friday, putting major indexes on track to barely snap a four-session losing streak, ahead of a speech by Federal Reserve Chair Janet Yellen that could create a volatile close on Wall Street.
The Times of India  Mar 27  Comment 
The benchmark BSE sensex on Friday ended at 27,458.64, up by a marginal 1.06 points to technically snap the seven-session losing streak in a highly volatile trade amid continuing geo-political tensions.
The Hindu Business Line  Mar 27  Comment 
(function() { var lb24 = document.createElement('script'); lb24.type = 'text/javascript'; lb24.id = '24lbScript'; lb24.async = true; lb24.c...
Financial Times  Mar 27  Comment 
A tough first quarter is expected for fixed income revenues
The Hindu Business Line  Mar 27  Comment 
The Sensex and the Nifty ended the session near flat after a volatile trade. Both the indices posted their third consecutive weekly loss on concerns over rising tensions in West Asia. Th...
TheStreet.com  Mar 26  Comment 
NEW YORK (TheStreet) -- It's been a volatile two weeks for U.S. stocks. The Dow Jones Select Dividend Index , the benchmark of the model portfolio, has declined three straight sessions, yet is virtually unchanged over the past couple of weeks....




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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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