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
Volatility refers to swings in the value of an investment Such swings in value may be caused by changes in the overall market or they may be due to specific changes effecting a particular investment Volatility is a form of risk Of the basic investment categories over the long run, small capitalization equities (stocks of smaller companies) show the greatest volatility, followed by large capitalization equities (stocks of large companies, like the S&P 500), then long term fixed instruments (bonds, like in the bond fund), and then money market instruments In the long run, those investments with the highest volatility have the highest rate of return
A measurement of the change in price over a given period It is often expressed as a percentage and computed as the annualized standard deviation of the percentage change in daily price
The degree of price fluctuation for a given asset, rate, or index; usually expressed as a variance or standard deviation
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
{i} state of threatening to explode; fickleness; characteristic of memory which requires a constant electrical supply in order to keep the data from being erased (Computers)
The degree of fluctuation in the value of a unit trust or 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
A representation of the uncertainty of future securities prices Technically, volatility is the amount of price variation around a general trend It is a major determinant of the value of any option
A measure of risk based on the standard deviation of investment fund performance over 3 years Scale is 1-9; higher rating indicates higher risk Also, the standard deviation of changes in the logarithm of an asset price, expressed as a yearly rate 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
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 up-and-down movement of a security's price over time The greater the volatility, the greater the chance of a profit or risk of a loss in a short period of time
The first letter shows the degree to which this fund's monthly returns have fluctuated, above and below the mean, over the past five years The second letter is the average 5-year volatility of the funds in this investment objective compared to the average volatility of each other equity objective An 'A/A' means a fund is in the top 20% (lowest volatility), of all funds in its investment objective, and its investment objective average is in the top 20% (least volatile), of all equity (or fixed income), investment objectives An 'E/E' means a fund is in the bottom 20% (most volatile), and its investment objective average is also in the most volatile quintile
The increase or decrease in an assets price over time High volatility means wide price changes that can happen in a short period of time, while low volatility refers to smaller, slower changes in price over time
A measure of the fluctuation in the market price of the underlying security Mathematically, volatility is the annualized standard deviation of returns
Quality or state of being volatile; disposition to evaporate; changeableness; fickleness
the trait of being unpredictably irresolute; "the volatility of the market drove many investors away" the property of changing readily from a solid or liquid to a vapor