Definition of «volatility»

Volatility refers to the degree of fluctuation or unpredictability in an investment, security, commodity or index. It is often used to describe how much a particular asset has risen or fallen over time and can be measured by calculating standard deviation or other statistical methods. In general terms, high volatility means that the price of an asset is likely to experience significant fluctuations in value while low volatility indicates more stable prices.

Usage examples

  1. The stock market experienced high volatility this week, with prices continuously fluctuating throughout the trading sessions.
  2. The currency market is known for its volatility, with exchange rates shifting rapidly due to various economic and political factors.
  3. Cryptocurrencies, such as Bitcoin, are notorious for their high volatility, with prices sometimes doubling or halving within a matter of days.
  4. The oil industry is heavily influenced by volatility in the global market, with prices changing abruptly due to geopolitical tensions or supply and demand imbalances.
  5. Volatility in the housing market can impact property prices, leading to rapid appreciation or depreciation depending on the economic conditions and buyer sentiment.

Sentences with «volatility»

  • The fund's standard deviation, a measure of volatility of returns, was about 0.5 % higher than that of the reference ETF portfolio. (alpholio.com)
  • The case in point for our purposes: seeking to reduce the impact of market volatility in an investment portfolio. (blackrockblog.com)
  • Some say it is due to the low volatility low interest rates. (trendfollowingmentor.com)
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