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Volatility is a statistical calculation to quantify the level of distribution in Stock Prices around the Mean value. A Stock with a tendency to change quickly and unpredictably is deemed as a riskier Stock.

In Stocks, Volatility is expressed as a percent referenced to a specific time period, Annual Volatility or Average Annualised Volatility over the past X number of years. Volatility is also calculated for shorter periods of time, daily Volatility and this short-term level of Volatility is keenly watched by Equity Investors. Increasing Volatility often signals price movements to the downside as indiscriminate selling commences. But not always, unexpected, good news can also lead to a jump in the Stock Price. Volatility is a statistical calculation to quantify the level of distribution in Stock Prices around the Mean value. The level of Volatility is important as a Stock with a higher level of Volatility is deemed as a riskier Stock. Volatility is one variable for the calculation of Derivative Contracts such as Options.

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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: wwBLOG@smartest-data.blog or Telegram +393339034488

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Smartest-Data

Smartest Data aims to be your go-to source for analysis and commentary on Investments, Personal Finance and the Global Stock Markets. The aim is to provide our readers with insightful and actionable information for independent minded Investors.  Dissecting  the daily avalanche of Data produced by the Stocks Market by using data Websites  and Apps available to people at home. Join us, to be Driven by Data to navigate the Investment universe markets and make better informed investment decisions.