Historical Volatility

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SeekingAlpha  7 hrs ago  Comment 
By Trading Champ: American Railcars Industries, Inc. (NASDAQ:ARII), a leading North American designer and manufacturer of hoppers and tank railcars, has been on a roller coaster for many years because of the volatile nature of its industry. The...
Yahoo  8 hrs ago  Comment 
The all-important monthly jobs report, coupled with key consumer income and spending data, could lead to another volatile week for stocks.
Forbes  8 hrs ago  Comment 
A volatile week in the market has ended on an upswing, at least for U.S. equities: a day after hitting their lowest levels since July 31, the three major indices rebounded on Friday thanks to a solid GDP report, with the Dow, Nasdaq and S&P all...
SeekingAlpha  Sep 26  Comment 
By John M. Mason: The financial markets are bouncing all around these days. Front page in the Wall Street Journal, "Global Anxiety Roils Markets." The Dow Jones Industrial Average hit its all time high on September 19. Yesterday it dropped more...
Yahoo  Sep 26  Comment 
Clearpool's Peter Kenny says this market has a little run left in it before the end of the year.
The Australian  Sep 26  Comment 
MarketWatch  Sep 26  Comment 
October’s volatility tends to be much higher than September’s, writes Mark Hulbert.
Financial Times  Sep 26  Comment 
End to QE and low inflation make chasing profits a bigger risk
SeekingAlpha  Sep 25  Comment 
By Nathan Buehler: Instablog update Here ETFs mentioned in this article Proshares Ultra VIX Short-Term Futures ETF (NYSEARCA:UVXY) Proshares Short VIX Short-Term Futures ETF (NYSEARCA:SVXY) Recap During my last update several...
MarketWatch  Sep 25  Comment 
A rise in volatility may exacerbate recent weakness in the junk bond market.
Benzinga  Sep 25  Comment 
S&P 500 Futures are moving down sharply in Thursday morning trade, possibly as a result of the index breaking recent support levels. Overnight, S&P futures traded in a range of 1986 to 1992. Beginning at 8:00 a.m. EDT, S&P Futures fell to...




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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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