Historical Volatility

RECENT NEWS
Forbes  46 min ago  Comment 
VIX has been behaving rationally recently, as far as I'm concerned. First we had the rise in volatility and the so-called Fear Gauge coming into the election as anticipated and we even had an overnight 'limit down' session similar to August 2015...
Motley Fool  49 min ago  Comment 
Celldex's volatility continues with a double-digit move lower on Monday.
Agrimoney.com  4 hrs ago  Comment 
Speculators, "susceptible to popular delusion", are to increase ag price swings, Commerzbank's Eugen Weinburg tells the AgriRisk Forum
WA Business News  Nov 28  Comment 
Oil prices have gained more than two per cent, recouping earlier losses, in volatile trading as the market reacts to the shaky prospect of major producers being able to agree output cuts at their upcoming meeting.
Forbes  Nov 28  Comment 
"Our world is volatile and change is certain. I think we can confidently assume that investors will choose organizations intent not on replicating yesterday’s success but demonstrably equipped and committed to creating tomorrow’s success today."
Benzinga  Nov 28  Comment 
Earlier this year, the low volatility factor was the object of much attention and adulation, and that affection was not limited to U.S.-focused exchange-traded funds. iShares EEMV The iShares Edge MSCI Min Vol Emerging Markets ETF, iShares...
New York Times  Nov 28  Comment 
Oil prices were volatile ahead of a Wednesday meeting of OPEC to discuss production cuts to bolster prices.
The Hindu Business Line  Nov 28  Comment 
Fund managers are increasingly moving towards large-cap companies in preference to smaller players as the recent volatility in Indian stock markets has brought most front-line stocks down to attracti...
Wall Street Journal  Nov 28  Comment 
Expectations that an Organization of the Petroleum Exporting Countries production deal was unraveling dominated Asian trade Monday, adding volatility to regional stocks and currencies.
The Economic Times  Nov 27  Comment 
A sharp 456-point bounce in S&P BSE Sensex on Friday helped it close the week at 26,316, up 166.10 points, or 0.63 per cent, over its previous week’s closing.




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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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