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volatility

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the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns

~17 min read

Encyclopedic overview

CBOE Volatility Index (VIX) from December 1985 to May 2012 (daily closings)

In finance, volatility (usually denoted by "σ") is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.

Excerpted from Wikipedia’s “volatility” article, available under the CC BY-SA 4.0 licence.