0
The historical volatility of a stock is the variation of the returns over a period of time (say, over the last twelve months).
The variation of the returns is usually taken as the standard deviation of the returns.
You need a spreadsheet to calculate historical volatility (see the related link for an example)
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is the stock symbol for the volatility index?
The symbol or ticker for the CBOE Volatility Index (VIX)varies depending on your quote server. VIX or .VIX are commonly used along with ^VIX (Yahoo Finance), and $VIX (Schwab).
Why is beta the correct measure of a stock riskiness?
Beta measures a stock's volatility (the swings up and down in price). The market as a whole has a beta of 1.0, but each stock is determined a beta value from a history of it's stock movements. Riskiness equates to the stock losing value and high beta stocks are more prone to falling faster.
How do you calculate beta in mutual funds?
Check out these websites: http://faculty.babson.edu/academic/Beta/CalculateBeta.htm http://www.money-zine.com/Investing/Stocks/Stock-Beta-and-Volatility/
Would you expect the volatility of a share index to be greater than or less than the volatility of a typical share?
The same - because that is how "typical" would be defined.
What does above 10000 mean on stock exchange?
In itself it means absolutely nothing.The number has meaning only when you compare it to historical data for several years back for the same stock exchange. Even then, it doesn't say much about whether the stock marketwill climb or fall in the future. It is primarily useful to compare the stock market today with what it was last month or last year.
What is stock option volatility?
Stock option volatility is the amount of movement a stock is anticipated to make in a specific time frame. This information is important to investors to enable them to predict if they will make money or not.
Is volatility a word?
Yes, volatility is a word and it means unstable or easily susceptible to external influences.For example, the volatility of the Stock Marketincreases as the economy weakens.
How an option holder gains from the volatility of the underlying stock price?
A component of the option price is the implied volatility of the stock. When the implied volatility rises the price of the option rises slightly. Read more about VEGA & DELTA of an option.
What does volatility in the stock markets imply?
Volatility in the stock markets usually implies that the market is about to swing either upward or downward. Where there is a strong stock sell off it can indicate that the market is about to take a downward swing.
What is imp vol in option trading?
Implied volatility is the expected volatility of the underlying stock. The higher the implied volatility, the more the underlying stock is expected to move and thus the more expensive an option becomes due to increased extrinsic value.
Why does trading stock create volatility?
Simple answer is that volatility is simply price change. Price changes due to supply and demand so when people trade a stock it affects supply and demand.
What would make a firm's beta increase?
The beta of a firm's stock is dependent on the volatility of the stock relative to the overall market. So if the stock's volatility increased relative to the overall market, it's beta would increase as well.
Where can I find information on stock option volatility?
There are quite a few web sites that list stock volatility including Bloomberg. They not only display information about each company, but a long history of their stock prices so you can see the long-term viability of a stock and its options.
Why is global trade necessary?
Concerns about trade have added to the volatility in the stock market.
What type of risk is measured by standard deviation?
In terms of stock analysis, volatility.
How can you get a stock investment section going that deals with volatility?
There are five volatility indexes that are found on the CBOE.org web page. (CBOE = Chicago Board Options Exchange).
What is the volatility of vodka?
volatility is the relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility
