The ups and downs in the price of an asset such as stocks, mutual funds, crypto, currency or gold, etc. over a time period (daily, weekly, monthly, etc.) is termed as volatility.nbsp; Mathematically, volatility is measured via standard deviation around the average price of the asset.
Fixed-income investments such as bonds and IndiaP2P have low or no volatility as returns are fixed and predictable.
High volatility implies lesser predictability and more risk. However, many traders play on volatility to earn also.
A 2020 study on the Samp;P500 index by Crestmont Research has found that higher volatility means a higher chance of the market declining while lower volatility means a higher chance of market rising.