By Email Corporate Volatility 1. In general, volatility is a statistical measure of the tendency of a market or security to rise or fall sharply within a short period of time. Volatility is typically measured by the variance or annualized standard deviation of the price or return.
Volatility is a variable that appears in option pricing formulas.
In the option pricing formula, it denotes the volatility of the underlying asset return from now to the expiration of the option. A highly volatile market means that prices have huge swings in very short-periods of time. A measure of the relative volatility of a stock to the market is its beta. Managed Futures Kit Stop losing money on your investments. Use this highly successful investment.