The rate of change in value in a company share price. Internet stocks are particularly volatile, rising and falling rapidly, and sometimes doubling or halving in value in the space of weeks or even days.
Volatility is a measure of the amount by which an asset has fluctuated, or is expected to fluctuate, in a given period of time. Assets with greater volatility exhibit wider price swings and their options are higher in price than less volatile assets. Volatility is not equivalent to BETA.
The volatility of a stock describes the extent of its variance over time. See standard deviation.
Fluctuation in share prices. Volatility is a measure of risk, as the higher the volatility, the less certain an investor can be of a return.
The degree to which underlying gold prices change from day-to-day. Uncertainty in the market (such as the aftermath of September 11th), tends to increase the level of price volatility, while market holidays and inactive financial markets tend to lead to a reduction in volatility.
The statistical measure of the price variation of an instrument. An instruments volatility rating is a calculation of how volatile an instrument is by calculating how much its performance is divergent from the normal pattern.
The volatility of the value of a share represents the amount of variation in the share price. The most volatile shares are those with the largest variations in value of their share price and they are therefore the most risky investment.
see also Standard Deviation; Implied Volatility) In finance, a statistical measure of dispersion of a time series around its mean; the expected value of the difference between the time series and its mean; the square root of the variance of the time series. Yield Curve For a particular series of fixed income instruments such as government bonds, the graph of the yields to maturity of the series plotted by maturity.
The markets price range and movement over a period of time.
A measure of price fluctuations. The standard deviation of a price series is commonly used to measure price volatility.
A measure of the rate or degree that the price of a security or investment fluctuates over time, normally used as an indicator of risk.
The extent to which an economic variable, such as a price or an exchange rate, moves up and down over time.
Fluctuations in a security's or portfolio's return.
Measure of the amount of fluctuation in price of the underlying security calculated using the standard deviation of average daily price change.
Statistical term to quantify the dispersion of variables such as rates or prices around the mean. A measure of the variability of the price of an underlying financial instrument, rate, commodity, or currency. Volatility only measures the quantity of the change - not the direction. Volatility is not influenced by the direction of the change; it does not matter whether the price rises or falls.
A term used to describe large price fluctuations in a specific security.
Volatility (variability, inconstancy): This term characterizes a degree of variability of an exchange rate during the certain period of time. For example, when in the market there are sharp fluctuations of a rate with big amplitude then the volatility is said to high.
A measure of the amount of movement in the price of an instrument.
A sharp fluctuation in the price of an investment (such as a stock, bond or commodity) over a relatively short period. The more volatile an investment, the more risky it is considered to be.
The range over which the price of an instrument moves with a given timeframe.
The magnitude and frequency of changes in a security’s value within a short period. The more volatile an investment, the higher its risk and potential return. Volatility is usually measured by calculating the annualized standard deviation of daily change in price.
How quickly the price of a security rises and falls over time. A highly volatile share can be risky for short-term investors who stand a greater chance of buying at a peak and selling in a trough at a loss.
With respect to the stock market, the rate at which a stock price increases and decreases over a given period of time. The more rapid the changes in price, the greater the volatility.
A statistical measure of dispersion of either historical or expected price changes.
A measure of the variability (but not the direction) of the price of underlying instruments. It is defined as the annualized standard deviation of the natural log of the ratio of two successive prices.
Term used to describe the size & frequency of price fluctuations of a security, index, etc. See also Beta.
Measure of the variability of the market prices, used to assist the setting of margin rates.
Volatility is a measure of the variability of returns over a chosen time-period. It reveals the extent by which the daily/weekly/monthly price changes from the average. A low percentage volatility shows that the price has stayed quite close to the average whereas a high percentage volatility shows that the price has moved up and down a lot over the time-period. So volatility is a market measure of uncertainty – investors keep changing their minds as to the value of the share, which reflects uncertainty surrounding the company’s future profit potential. As such, it's an excellent indicator of investment risk.
The degree of ups and downs of the price of an investment.
A measure of the amount by which an underlying is expected to fluctuate in a given period of time. Volatility is a primary determinant in the valuation of options premiums and time value. There are two basic kinds of volatility, implied and historical (statistical). Implied volatility is calculated by using an option pricing model (Black-Scholes for stocks and indices and Black for futures). Historical volatility is calculated by using the standard deviation of underlying asset price changes from clos e to close trading going back 21 to 23 days.
The degree to which financial instruments or markets are subject to market fluctuations. Volatility is measured by an annualised Standard Deviation of the underlying. The two most common methods of assessing volatility levels are Historical and Implied Volatility. The volatility level is a main factor influencing option premiums. In the bond markets, volatility refers to modified duration.
The general variability of a portfolio's value resulting from price fluctuations of its investments. In most cases, the more diversified a portfolio is, the less volatile it will be.
The degree to which the price of a security fluctuates over a given period of time. Highly volatile securities are regarded as risky investments.
A statistical measure of the risk of holding a security; the standard deviation of expected returns on a security.... more on: Volatility
Degree of variation in a share's price. Stocks which react strongly to market trends are highly volatile. For the investor, this means the possibility of making fast and attractive gains, but also the risk of making equally fast and dramatic losses.
a measure of a stock's tendency to move up/down in price, based on its daily price history for the last 12 months.
The sensitivity of a security's price to changes in the overall market. Also, interest rate fluctuations resulting from an unstable market.
a measure of how much update occurs in connection with a given information collection
Level of fluctuation of the price of a financial asset, usually used to refer to the level of risk of an asset.
A measure of the expected amount of fluctuation in the price of the particular securities.
Movement in the price of a stock from its high and low.
the standard deviation of security price changes. The annualised standard deviation of return
A characteristic of a security which rises or falls sharply in price within a short time period.
It is a measure for the fluctuation range of the underlying price. The greater the volatility, the higher the option price. The historic volatility is based on past data. It is often expressed as a percentage and computed as the annualized standard deviation of the percentage change in daily price. The implied volatility corresponds with the expectation of the market participants about the future volatility of the underlying which is reflected in the current option price.
A measure of the fluctuation in the market price of a given investment, rate or index. Volatility is usually expressed as a variance or standard deviation.
Volatility represents the magnitude of the price of the underlying security's movements during a specific time period.
The market fluctuations in the price of a security.
The degree to which the price/returns of a security fluctuates over a given period of time. The higher the volatility, the higher the risk of the investment.
Movement of a business and its industry in relation to the economy as a whole. More volatile businesses require greater returns to compensate investors for greater uncertainty.
A measure of risk based on the standard deviation of an assets return. The greater the degree of an assets volatility, the greater the risk.
A statistical measure of changes in price over a period of time.
The variability often measured by standard deviation of movements in a security's price. The sensitivity of one variable to changes in another, e.g. the change in a bond's price with respect to changes in the redemption yield. In bond management the term is often interchangeable with modified duration.
A measure of the extent to which prices move. If the price of an underlying asset moves to a greater extent than before, its volatility is said to have increased and vice versa. So far as options are concerned, as volatility increases, the risk to the options writer also increases and the premium will rise.
The extent of fluctuation in asset prices. Volatility is one way of measuring risk.
The likelihood that an instrument's value will change over a given period of time, usually measured as beta.
Volatility is the fluctuation in the value of a security, a fund or an index. The more volatile the investment, the more quickly and the more significantly its value fluctuates.
A measure of risk. Volatility signals the tendency of a security to rise or fall in price very quickly. It is measured in a variety of ways, including standard deviation and beta.
Variability; fluctuation. In investing, the range of outcomes for a given investment over a period of time. The smaller the range of an investment's returns, the lower the investment's volatility, and vice versa. One of the most common measures of investment risk.
Describes the propensity of a market price to change rapidly.
An indication of risk measured by calculating the standard deviation of the fund's monthly returns over the time period. The higher the figure, the greater the variability in the fund's performance. (see Beta )
characteristic of an issue to rise or fall sharply within the short term. Calculated by the following formula: 1- Get Price Relatives = price on day / price on day x-1 2- Calculate log of each Price Relative and Sum all logs? (Log (price on day x / price on day x-1)) 3- Calculate the mean of the range of price relatives? (Log (price on day x / price on day x – 1)) / # price relatives 4- Calculate the sum of the square of each price relative? ((price on day x /price on day x-1)2) 5- Volatility is: Square Root (253*(sum of the squares or price relatives (# of price relatives(mean of the logs of price relatives)2)) / # of price relatives
Fluctuations in interest rate or exchange rates.
A measure of the amount of movement in the price of a stock.
This is the measure of the amount and frequency of price variations of an index or security.
Relative measure of a securityâ€(tm)s price movement during a specific time.
The level of fluctuation in the value of an investment which can also indicate the risk level. Generally, the higher the volatility, the greater the risk.
The propensity of the market price of the underlying security to change in either direction.
the standard deviation of percentage price changes
Frequent changes in interest rates, or the anticipation of frequent changes in interest rates. Since large drops in interest rates can cause MBS to prepay and to underperform other fixed income instruments, MBS generally perform better than other securities in a low volatility environment. Interest rate derivatives can be used to hedge the risks associated with changes in actual or anticipated volatility.
Characteristic of a security, commodity, or market to rise or fall sharply in price within a short period of time, driven by emotions of fear and greed.
The range of fluctuation in prices, expressed in per cent.
Is the annualized standard deviation of the natural logarithms of asset returns.
The fluctuations in performance returns of a security or a portfolio.
The rate of change in the price of the underlying commodity.
A measure of price stability. An investment is volatile if its price is subject to wide swings.
Refers to the level and frequency of fluctuations in the price of a particular stock, bond, or other type of security. Go to Top
The variability of prices of securities over a period of time. The more the price of a security fluctuates, the greater is the volatility of that security. Securities with the greatest... read full article
The degree by which a share price tends to move. The more the price jumps about, the more volatile the share.
See "Standard deviation"or "Volatility".
measure of the uncertainty of the return realized on an asset.
The amount by which the price of a security fluctuates as market conditions change.
A measure by which an exchange rate is expected to fluctuate or has fluctuated over a given period. Volatility figures are often expressed as a percentage per annum.
The rise and fall in price of a security, commodity, or market within a short-term period.
A measure of how widely the result in a market is likely to vary. Touchdown Scorers Shirt Nos are very volatile, the winning score in the US Masters less so.
This describes the fluctuations in the price of a stock or other type of security. If the price of a stock is capable of large swings, the stock has a high volatility. The pricing of options contracts depends in part on volatility. A stock with high volatility, for example, commands higher prices in the options market than one with low volatility. Volatility may be gauged by several measures, one of which involves calculating a security's standard deviation. Stock investors sometimes prefer to measure a stock's volatility versus that of an index, such as the Standard & Poor's 500 Index. This is known as a stock's beta. A beta of 1.2 implies a stock that is 20% more volatile than the S&P 500. When the S&P rises 10%, the stock is expected to rise 12%.
the degree of movement in the price of a stock or other security.
A measure of the amount by which an asset price is expected to fluctuate over a given period.
A measure of fluctuation in the market price of a security. A volatile stock or fund has frequent and large price swings. Statistically, the measure most commonly used for volatility is "standard deviation," the amount the price of a stock or mutual fund varies over time.
A measure of fair price movement from a STOC.
a measure of the variability of a market factor, most often the price of the underlying instrument. Volatility is defined mathematically as the annualised standard deviation of the natural log of the ratio of two successive prices. The actual volatility realised over a period of time (the historical volatility) can be calculated from recorded data. Volatility is one of the variables that must be specified in the Black-Scholes model of option pricing: a vanilla option will cost more when volatility is high than when it is low. However, volatility is the only one of these variables whose value must be estimated. The estimate used (known as the implied volatility) can be derived from the prices of options in the market and the known input variables. However, the Black-Scholes model also assumes that volatility is constant, which is not true. New techniques have been developed to cope with volatilityâ€(tm)s variability, including mean-reverting models (such as Garch) and stochastic volatility models.
The increase or decrease in an asset's price over time. High volatility means wide price changes that can occur in a relatively short period of time, while low volatility refers to smaller, or more gradual fluctuations.
The range and frequency of fluctuations in values such as share prices, exchange rates and interest rates. The higher the volatility, the less predictable the return.
This describes the fluctuations in the price of a stock or other type of security. If the price of a stock is capable of large swings, the stock has a high volatility. The pricing of options contracts depends in part on volatility. A stock with high volatility, for example, commands higher prices in the options market than one with low volatility. Volatility is measured by an alpha factor, for example, a stock with a 1.4 alpha is regarded as one whose price will rise by 40% in a year. Also: a measure of the volatility of a security relative to an entire market, such as the Standard & Poor's 500 Index, is known as the security's beta or beta coefficient.
The rise and fall price movement of a security. Securities that rise or fall rapidly within a short time frame are considered more volatile than those that don’t. (See Beta)
The degree of fluctuation in the value of a security, mutual fund, or index, volatility is often expressed as a mathematical measure such as a standard deviation or beta. The greater a fund's volatility, the wider the fluctuations between its high and low prices.
Fluctuations – up and down movements of a security’s value. Kembali ke top
A measure of the amount by which a currency s price is expected to fluctuate over a given period.
The variability of a portfolio's returns from one period to the next. Typically, a more volatile portfolio will decline more during bear markets and increase more during bull markets. Volatility is expressed mathematically by the standard deviation. Reducing portfolio volatility can be positive in two ways: 1) it makes the pain of a market decline less, and 2) it will actually cause wealth to grow faster than in a higher volatility portfolio with the same mean rate of return.
Statistical measure of the change in price of a financial currency pair over a given time period.
How much a security varies in price. Usually measured by standard deviation.
A measurement of degree of change in price over a specified period of time.
The amount by which a fund's return varies over time; used as a measure of investment risk.
A parameter indicating the size of the fluctuations in an asset's price, e.g. the fluctuations in a share price. See also implied volatility.
A measure of the fluctuation in the market price of the underlying security. Mathematically, volatility is the annualized standard deviation of returns. See the sections in 'Options' which describes implied and historical volatility.
the tendency of financial markets to change abruptly at the whims of investors. As national control over financial markets fall as a result of capital account liberalization and the volume of portfolio investment skyrockets, volatility is increasing in financial markets. While unstable markets are profitable for speculators (see 'speculation'), the real economy can not function properly when exchange rates are fluctuating wildly and capital is flowing in and more often out, of a country in tidal waves.
The percentage by which a stock’s price rises or falls during a specific period of time.
The relative amount or percentage by which a share's price rises and falls during a period of time.
The measurement of how much an underlying security fluctuates over a period of time.
The measure of the relative deviation of a price from the mean.
See historical and implied volatility
a measure of how rapidly a collection of information changes
This refers to the measure of the currency's expected fluctuation over a given time period based upon historical fluctuations. This is typically calculated by taking the historic annual standard deviation of daily price changes. Future prices help to determine implied volatility, which is used to calculate option premiums.
The range of price swings of a security or market over time.
Accepted by academics and financial planning practitioners as a representation of risk, expressed statistically as the standard deviation, which analyzes the fluctuation of returns of an investment around an average. Also defined as the tendency of a security or market to fluctuate in price.
One of the major factors in deciding an options worth. The degree to which the underlying price tends fluctuate over time. Historical volatility can be calculated by looking at price fluctuations over a specific period in the past. Implied volatility can be implied from option prices observed in the market place. This is achieved by using the Black-Scholes Equation, or one of its derivatives to calculate an option volatility which gives the current market option price. Historical and implied volatility can be used to estimate the price of OTC options.
Means risk, as measured by the standard deviation of a security's price.
Measure of the risk of an investment, fund or portfolio. In most cases, it is expressed as the annualised standard deviation of the changes in the value of the investment over time. A high (low) volatility indicates a high (low) investment risk. See "Risk".
In relation to the share price, used to indicate the relative amount or percentage by which it rises and falls during a period of time.
A statistical measurement of the variability of a share's price, often expressed by the standard deviation.
The degree by which share prices in a particular stockmarket or sector go up or down. Usually measured by the movement in a particular index.
See on: Wikipedia Investopedia This term characterizes a degree of variability of an exchange rate during the certain period of time. For example, when in the market there are sharp fluctuations of a rate to the big amplitude, then the volatility is high.
The extent of fluctuation in share prices, exchange rates, interest rates, etc. The higher the volatility, the less certain an investor is of return, and hence volatility is one measure of risk.
A measure of the amount by which an underlying security is expected to fluctuate in a given period of time. Generally measured by the annual standard deviation of the daily price changes in the security, volatility is not equal to the Beta of the stock.
Measure Characteristic of an instrument to rise or fall sharply in price within a short-term period. Also known as 'beta'.
A statistical measure of the movement of a security over a specified time. Stocks with larger daily percentage movements have larger volatility. See also historic, individual, and implied volatility.
The price fluctuations of a security or mutual fund relative to an appropriate market index. The more volatile a security or mutual fund, the more it is subject to rapid and extreme price fluctuations relative to the market.
How much and how quickly the price of an asset changes. High volatility means the asset is risky, low volatility means it is safe relative to the market.
A statistical measure of the change in a fund's rate of return over time.
The amount of deviation from the long term expected return on a video poker machine that someone can expect. The harder it is to his a jackpot, the higher the volatility of the machine.
The rate at which the price of a security moves up and down
An annualized measure of the fluctuation in the price of a futures contract. Historical volatility is the actual measure of futures price movement from the past. Implied volatility is a measure of what the market implies it is, as reflected in the option's price.
A measure of risk based on standard deviation in fund performance over 3 years. Scale is 1-9; higher rating indicates higher risk.
an investment's risk, typically synonymous with Standard Deviation.
Volatility can be simplistically described as riskiness. More accurately volatility is a measure of the movement in a fund's monthly total return over three years compared to the average of those movements
Refers to the fluctuating value of an investment. A share is said to be volatile if its price moves up and down frequently over a short space of time.
Is the measure of the degree of dispersion of returns around the mean. Standard deviation is used as a statistical measure of this. Volatility is one of several investment risks.
The extent to which total returns from an investment fluctuate over time.
The propensity of a security's price to rise or fall sharply.
A statistical measure of a market's price movements over time.
Changes in the price of a security. Rapid, wide price swings indicate a high degree of volatility. Appears next to a unit trust or share listing in the newspaper to indicate that the fund recently paid a capital gain or dividend. This amount was previously included in the fund's net asset value and is deducted from the net asset value when it is paid out. The "x" stands for "ex-dividend".
The speed and magnitude of price changes of a security measured over a period of time. A price that often moves significantly will be considered to have a high degree of volatility. Standard deviation is the absolute measure of volatility and is the measure of the square root of the variance of the fund's returns from the mean over specified regular measurement periods. (See also: Standard Deviation)
In general, a measure of the uncertainty of the amount by which the price of the underlying instrument is expected to fluctuate in a given period of time. Generally expressed in annualized percentage terms as a standard deviation of the daily price changes in the underlying instrument. Volatility, as described, is calculated from both historic prices for the underlying instrument, as well as the implied volatility resulting from a theoretical option pricing model given all normal input variables (except volatility) plus the premium amount.
A measure of the price movement of a stock. It is a measure of the tendency of a stock to make a significant move in a short period of time.
The frequency and rate of change of an instrument. Often used as a theoretical measurement of risk. Volatility can be calculated statistically. Implied volatility is that given by the prices of options.
A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return from now to the expiration of the option. There are volatility indexes. Such as a scale of 1-9; a higher rating means higher risk.
The degree of fluctuation for a given price or rate, such as a stock price or currency exchange rate.
A measurement of how much variability there may be in the prices of an underlying security over a specified period of time.
The degree to which a security is subject to sudden and unpredictable price changes.
In investing, volatility refers to the ups and downs of the price of an investment. The greater the ups and downs, the more volatile the investment.
The amount by which an investment's return varies over time; used as a measure of investment risk.
A type of risk associated with investing, particularly in stocks or the stock market in general. It refers to the fact that some security prices will rise and fall more rapidly over short periods of time.
The level of fluctuation in the rate/price of financial instruments and assets.
A measure of risk based on the standard deviation of the asset return. Also, volatility is a variable that appears in option pricing formulas. In the option pricing formula, it denotes the volatility of the underlying asset return from now to the expiration of the option. Some have created volatility indices. Here is an example, scale is 1-9; higher rating indirectly higher risk.
the level of fluctuation in share prices
1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the expiration of the option.
Usually defined as the standard deviation of returns of an asset. Volatility generally refers to the magnitude of price movements in a specific asset. Large price movements are said to be more volatile and vice versa. Volatility has a major direct influence on option premium levels. When volatility is high, premiums increase (all other assumptions remaining the same). When volatility is low, premiums decline.
The degree of fluctuations in an investment, for example share prices, exchange rates or interest rates. Volatility is one measure of risk.
Volatility is an indicator of expected risk. It demonstrates the degree to which the market price of an asset, rate, or index fluctuates from average. Volatility is calculated by finding the standard deviation from the mean, or average, return.
The tendency of security returns or prices to fluctuate in a random, unpredictable manner. Called historical volatility when derived from past movements. Called implied volatility when estimated from the market price of options.
Refers to the tendency of prices/variables to fluctuate over time. It is most commonly measured using the coefficient of variation (the standard deviation divided by the mean). The higher the volatility, the higher the risk involved.
A measure of the degree of fluctuation in a stock's price. Volatility is exemplified by large, frequent price swings up and down.
A measurement of the change in price over a given period.
The rate at which an asset moves up or down (see also Standard deviation).
The degree of uncertainty of returns on an asset. Often defined as the Standard Deviation of the return on total investment. See also Risk.
A security, market, or commodity that rises or falls severely in price within a short time period. See: Alpha; Systematic Risk; Volatile
The speed and extent to which the price of a security or an investment rises and falls within a given period of time.
A statistical measurement of the rate of price change of a futures contract, security, or other instrument underlying an option. See Historical Volatility, Implied Volatility.
The degree of fluctuation in the value of a security. The greater the volatility, the wider the fluctuation in a security's price.
Measure of the average fluctuation of a share price over a certain period. In statistics, the volatility is equal to the standard deviation.
The tendency of an investment to experience price swings (ups and downs) over periods of time due to fluctuations in the market. Beta is a measure of the relative volatility of a stock to the overall market.