Definition
Volatility indicates the degree of variation in a trading price series over time. High volatility means prices swing dramatically, while low volatility indicates more stable prices. The VIX index is often called the 'fear gauge' as it measures expected market volatility.
Formula
收益率标准差 = 根号(求和(收益率 - 均值)的平方 / n)
Example
If Stock A's price moves between $45 and $55 while Stock B moves between $48 and $52, Stock A is more volatile.
FAQ
What is Volatility?
A measure of how much a stock's price fluctuates over time.
How do you calculate Volatility?
A common formula for Volatility is: 收益率标准差 = 根号(求和(收益率 - 均值)的平方 / n)
Why is Volatility important?
Volatility helps investors evaluate risk and make more informed decisions.