Watch out when a situation becomes volatile — it is likely to change for the worse suddenly. If you and your best friend have a volatile relationship, you. A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility. a. Evaporating readily at normal temperatures and pressures. b. Capable of being readily vaporized. 2. a. Tending to vary often or widely, as in price: the ups.
What Is Stock Market Volatility? Realistically, most financial assets have negative skewness and leptokurtosis, so papas freezira formula tends to be over-optimistic. Implied volatility Volatility smile Volatility clustering Local volatility Stochastic volatility Jump-diffusion models ARCH and GARCH. COMPANY About Us Contact Us Advertise with Us Careers. The root is the Latin volatilis"fleeting, transitory, flying. The New Zealand implied volatility index. Volatility is a statistical measure of the dispersion of returns for a given security or market index. Register for ET Webinar: