What is volatility?
See this Answers.com link for the definition of volatility.]
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 the CBOE Volatility Index, VIX.
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
volatility is a property of matter. volatility of matter tells u the ability of that particular matter to evaporate. certain type of matter may have high degree of volatility where as others may have low or even no volatility.. eg: petrol is highly volatile. Even if it is left for a small time in the sun, it will evaporate very quickly.
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)
Volatility is the range in which the price of a financial instrument fluctuates and is one of the most significant indicators to highlight the attractiveness of a trading instrument. Volatility shows the extent of risk involved in using an instrument since the higher the indicator, the bigger the range in which the rate changes over a specified amount of time.
OIL VIX is the CBOE Volotility Index Created by the Chicago Board Options Exchange as a measure of equity market volatility. The VIX was introduced in January 1986. Since January 1993, the VIX has been computed in real time throughout the trading day. The computation of the value of VIX is based on the implied volatility of eight option series on the S&P 100 index, or OEX. The VIX is quoted in percentage points per…
They are inversely related. The volatility of a liquid increases with decreasing vapor pressure, as it provides more reversible effect on liquid molecules, so less liquid molecules are able to escape. Conversely, the volatility of liquid increases with decreasing vapor pressure, as it provides less reversible effect on liquid molecules, allowing more to escape.