In finance, volatility (symbol σ) is the degree of variation of a trading price series over time as 1 Volatility terminology; 2 Mathematical definition ; 3 Volatility origin; 4 Volatility for investors; 5 Volatility versus .. of Portfolio Management papers "We Don't Quite Know What We are Talking About When We Talk About Volatility ". Mathematical definition · Volatility for investors · Criticisms of volatility. Definition of Volatility in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Volatility? Meaning of Volatility as a finance term. Volatility definition, evaporating rapidly; passing off readily in the form of vapor: Acetone is a volatile solvent. See more. How volatility is measured will affect the value of the coefficient used. When calculating the required rate of return, investors lo. Retrieved from " https: Markets Forex Indices Shares Other markets. Volatility indicates the pricing behavior of the security and helps estimate the fluctuations that may happen in a short period of time. Historical Volatility - HV Dispersion Implied Volatility - IV Beta Time-Varying Volatility Volatility Swap High Beta Index Risk Measures Vega. Hikkake pattern Morning star Three Black Crows Three white soldiers. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Your sister's volatility might be shown in how quickly she switches from laughing to crying. Titan Company, PNB among most active stocks in terms of volume. Regression 2 advocates that the excess market return is positively related to expected volatility and negatively related to unexpected volatility. See more synonyms on Thesaurus. It shows the range to which the price of a security may increase or decrease. Leaderboards Vocabulary Bowl Bowl Leaders Today's Leaders Weekly Leaders Monthly Leaders. If the price of a stock moves up and down rapidly over short time periodsit has high volatility. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. A higher volatility means that a security's value u21em potentially be spread out what volatility means a larger range of values. It is a rate at which the price of a security increases or decreases for a given set of returns. This is termed autoregressive conditional heteroskedasticity. Volatility, as expressed as a percentage coefficient within option-pricing formulas, arises from daily trading activities. Derivatives based on such assets usually do not require a per cent upfront payment to take exposure to them, thereby incorporating an inherent element of leverage in them. There are volatility indexes. For example, Nassim Taleb famously titled one of his Journal of Portfolio Management papers "We Don't Quite Know What We are Talking About When We Talk About Volatility". Highly volatile markets are generally unstable, and prone to making sharp upward and downward moves. IG Index supports responsible gambling, for information and advice please visit www. A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.