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  2. Volatility (finance) - Wikipedia

    en.wikipedia.org/wiki/Volatility_(finance)

    A higher volatility stock, with the same expected return of 7% but with annual volatility of 20%, would indicate returns from approximately negative 33% to positive 47% most of the time (19 times out of 20, or 95%). These estimates assume a normal distribution; in reality stock price movements are found to be leptokurtotic (fat-tailed).

  3. Realized variance - Wikipedia

    en.wikipedia.org/wiki/Realized_variance

    The realized volatility is the square root of the realized variance, or the square root of the RV multiplied by a suitable constant to bring the measure of volatility to an annualized scale. For instance, if the RV is computed as the sum of squared daily returns for some month, then an annualized realized volatility is given by 252 × R V ...

  4. Forward volatility - Wikipedia

    en.wikipedia.org/wiki/Forward_volatility

    The volatilities in the market for 90 days are 18% and for 180 days 16.6%. In our notation we have , = 18% and , = 16.6% (treating a year as 360 days). We want to find the forward volatility for the period starting with day 91 and ending with day 180.

  5. How implied volatility works with options trading

    www.aol.com/finance/implied-volatility-works...

    Calculating fair value: By comparing implied volatility with historical volatility, you can determine whether an option is fairly priced. If IV is significantly higher than HV, it may suggest that ...

  6. Value at risk - Wikipedia

    en.wikipedia.org/wiki/Value_at_risk

    The 5% Value at Risk of a hypothetical profit-and-loss probability density function. Value at risk (VaR) is a measure of the risk of loss of investment/capital.It estimates how much a set of investments might lose (with a given probability), given normal market conditions, in a set time period such as a day.

  7. Best volatility ETFs: Use these funds to profit when the ...

    www.aol.com/finance/best-volatility-etfs-funds...

    Here are some of the best volatility ETFs and ... (annualized):-50.1 ... This ETF tries to provide daily results that are one-half the inverse of the daily performance of the S&P 500 VIX Short ...

  8. VIX - Wikipedia

    en.wikipedia.org/wiki/VIX

    CBOE also calculates the Nasdaq-100 Volatility Index (VXNSM), CBOE DJIA Volatility Index (VXDSM) and the CBOE Russell 2000 Volatility Index (RVXSM). [6] There is even a VIX on VIX (VVIX) which is a volatility of volatility measure in that it represents the expected volatility of the 30-day forward price of the CBOE Volatility Index (the VIX). [10]

  9. Average true range - Wikipedia

    en.wikipedia.org/wiki/Average_true_range

    Average true range (ATR) is a technical analysis volatility indicator originally developed by J. Welles Wilder, Jr. for commodities. [1] [2] The indicator does not provide an indication of price trend, simply the degree of price volatility. [3] The average true range is an N-period smoothed moving average (SMMA) of the true range values. Wilder ...