Definition of «low volatility»

The term low volatility refers to a situation where there is minimal fluctuation in the price of an asset or security. In other words, it means that the prices do not experience significant changes over short periods of time and remain relatively stable. This can be attributed to several factors such as strong fundamentals, consistent demand, and limited external influences. Low volatility is often associated with safer investments since there are fewer sudden price movements which could result in losses for the investor.

Sentences with «low volatility»

  • One important point they make is that the low vol anomaly is more than the idea that stocks with low volatility outperform stocks with high volatility. (abnormalreturns.com)
  • A dollar invested in 1968 in the top 20 % of lowest volatility stocks in a portfolio would be worth just over $ 100 in 2015. (realsmartbeta.com)
  • A significant body of research confirms the efficacy of investing in low volatility stocks over high volatility stocks. (valuewalk.com)
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