Glossary - Volatility
Volatility refers to the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns. It represents the risk of a security’s value changing due to changes in market prices. High volatility means the price of the security can change dramatically over a short time period in either direction, while low volatility means that the price is relatively stable.
Also known as
- Market Volatility
- Price Volatility
Use cases examples
- Financial Reports: The volatility of the company's stock has increased due to recent market fluctuations, impacting its market valuation.
- Investment Prospectuses: Given the high volatility observed in the emerging markets, investments should be approached with caution.
Considerations for investors
- Investors should assess their risk tolerance against the volatility of potential investments to ensure alignment with their investment strategy.
- Continuous monitoring of market trends and the volatility index (VIX) can help in making informed decisions about buying or selling assets.
Considerations for founders
- Founders should understand how the volatility of the market can affect their company’s stock price and overall valuation.
- Managing expectations with investors about potential market volatility and its impacts on performance projections is important.
Get to know our world class tools and services
Transform your operations with world class tools
We have created several tools to help investors spot the best opportunities and manage their portfolio.
Let's unlock your business potential with Automations
Embrace the future with our tailored subscription service that combines strategic planning and practical implementation.