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Historical Volatility

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Why Is Volatility Increasing?
FX Street  2 hrs ago  Comment 
Good Afternoon, Looking forward to tomorrow night's IBFX "Open Discussion on Technical Analysis"... For more information, read our latest forex news and reports.
Bank of Japan holds steady despite bond turmoil, upgrades economic outlook
Sydney Morning Herald  3 hrs ago  Comment 
The Bank of Japan has kept policy steady despite concerns over recent volatility in bond market, saying growth is starting to pick up even as risks loomed from an uncertain global outlook.     
4 Questions You Need to Ask Yourself for Tomorrow's Trading
FX Street  11 hrs ago  Comment 
Most traders thrive on volatility. Big moves in the market only spell one thing for them: BIG... For more information, read our latest forex news and reports.
Selling pressure eases in pepper
The Hindu Business Line  May 21  Comment 
Pepper prices continued to head south on bearish sentiments on Tuesday in the trading at IPSTA. The market was volatile and the selling pressure was waning out, market sources told Business Lin...
Global Macro: Volatility Lurks; Correction Is Likely
TheStreet.com  May 21  Comment 
NEW YORK (TheStreet) -- U.S. equity markets have extended their winning streak to four months, but low volumes and lack of a catalyst could add more volatility this week. The chart below shows Guggenheim S&P Equal Weight ETF over SPDR S&P 500 ....
EUR: Currency Index & Volatility
FX Street  May 21  Comment 
Relative Currency Strength To help us find the answer, we should determine the reasons why the... For more information, read our latest forex news and reports.
Gold and silver struggle in volatile trading
Financial Times  May 20  Comment 
As well as being considered “poor man’s gold” on the one hand, silver is used in electronics and solar panels by the energy industry, where demand has pulled back
ZYL Limited announces new strategy to fast track mine development
Commodity Online  May 20  Comment 
The past six months has been a particularly volatile and difficult time for the company. I do not however wish to deal extensively with this period other than to say that this chapter has now been satisfactorily closed and a new and exciting...




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This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition.
 
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Waseem Alim

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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