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. The New York Times Financial Glossary

* * *

volatile vol‧a‧tile [ˈvɒlətaɪl ǁ ˈvɑːlətl] adjective
a volatile market, situation etc is changing quickly and suddenly, for example rising and falling without much warning:

• Bonds started the year in a highly volatile trading environment.

— volatility noun [uncountable] :

• The report questioned whether market volatility should be blamed on foreign investors.

* * *

   Volatility describes the degree to which a value, such as a stock price or an interest rate, changes over a specified time period. High volatility means that the value changes dramatically, usually due to high market uncertainty. Traders thrive on market volatility because it presents many opportunities to earn a profit. Low volatility means values change minimally, as is the case when all news has been priced into the market. Professional investors tend to benefit from low volatility because they are better able to lock in stable returns. The financial markets distinguish between historical volatility and implied volatility. Historical volatility is a measure of volatility based on past price or yield behaviour, while implied volatility is implied by the price of an option.

* * *

volatile UK US /ˈvɒlətaɪl/ US  /ˈvɑːlətəl/ adjective
likely to change often or suddenly and unexpectedly: »

American technology shares remain volatile.


a volatile fund/investment/market


Property has always been less volatile than shares or gilts.

volatility noun [U]

Some investors are nervous about market volatility.

Financial and business terms. 2012.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Volatility — is the measure of the state of instability.*For volatility in chemistry, see Volatility (chemistry) *For volatility in finance, see Volatility (finance) *For the measure comparing the vapor pressures of the components in a liquid mixture of… …   Wikipedia

  • volatility — index inconsistency Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • volatility — *lightness, light mindedness, levity, frivolity, flippancy, flightiness Analogous words: vivaciousness or vivacity, gaiety, liveliness, animation, sprightliness (see corresponding adjectives at LIVELY): unstableness or instability, mercurialness …   New Dictionary of Synonyms

  • volatility — 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. Chicago Board of Trade glossary The rate of change in a… …   Financial and business terms

  • Volatility — 1. A statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the… …   Investment dictionary

  • volatility — (or VCM) Pet coke from a coker contains a small amount (<10%) of light hydrocarbons trapped in the pores of the coke. The amount of such volatility is generally related to the how hard the coker furnace is driven: hotter furnace outlet… …   Petroleum refining glossary

  • volatility — /ˌvɒlə tɪlɪti/ noun the fact of being volatile ● Investors are recommended to keep their money in building society accounts because the increasing volatility of the stock market. ▪▪▪ ‘…while the technology sector has certainly captured the… …   Dictionary of banking and finance

  • Volatility — Volatileness Vol a*tile*ness, Volatility Vol a*til i*ty, n. [Cf. F. volatilit[ e].] Quality or state of being volatile; disposition to evaporate; changeableness; fickleness. [1913 Webster] Syn: See {Levity}. [1913 Webster] …   The Collaborative International Dictionary of English

  • volatility — noun Volatility is used after these nouns: ↑market, ↑price …   Collocations dictionary

  • volatility — The state of being subjected to rapid and unpredictable changes, with resulting high *risks. For example: The volatility of Middle East oil markets is legendary …   Auditor's dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”