top of page
What is it for: It measures the change in the price of an asset over time, reflecting the risk of an investment.
How it works: Calculates the standard deviation of historical returns.
Calculation: Analyzes the daily or periodic changes in the value of an asset.
Usage: Fundamental in determining the relative risk of a stock or portfolio.
Formula: Volatility = √(Σ (Return - Average)^2 / n)
bottom of page