Strong inventories of energy could
reduce price volatility by ensuring a stable supply of energy if the upcoming winter season is worse than expected.
Also, Bitcoin futures contracts should, in effect,
reduce the pricing volatility of Bitcoin, since the speculation allows the market to be more efficient, leading to better pricing discovery.
The Regional Greenhouse Gas Initiative plans to implement an innovative new mechanism to help
reduce price volatility in the market for emissions allowances.
Beginning in April, the new contracts narrow the per pound cost that the company pays when traditional wings are at historically high and low market prices —
thereby reducing the price volatility seen in the first quarter.
The impact assessment shows that back - loading can rebalance supply and demand in the short term and
reduce price volatility without any significant impacts on competitiveness.
Shorter time frames are most important in bonds since shortened maturities can
reduce price volatility and improve liquidity.
The measures involve working towards making the market work better to
reduce price volatility, ensuring the best use of existing oil resources, accelerating a switch to alternative energy sources and further investment in alternative energy supplies.
The IPPR said energy savings would be relatively small per household, but key advantage would be to
reduce price volatility.
This diversification tends to smooth the returns from ETFs, i.e.
it reduces the price volatility.
There are many studies demonstrating why diversification works — to put it simply by spreading your investments across various sectors or industries with low correlation to each other,
you reduce price volatility.
The increased liquidity and
reduced price volatility that this would entail would improve the functioning of markets for emission allowances.
Such linkage occurs through bilateral recognition of allowances, which results in reduced costs,
reduced price volatility, reduced leakage, and reduced market power.