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Volatility as described here refers to the actual volatility, more specifically: . actual current volatility of a financial instrument for a specified period (for example 30 days or 90 days), based on historical prices over the specified period with the last observation the most recent price.
The VIX traces its origin to the financial economics research of Menachem Brenner and Dan Galai. In a series of papers beginning in 1989, Brenner and Galai proposed the creation of a series of volatility indices, beginning with an index on stock market volatility, and moving to interest rate and foreign exchange rate volatility. [1] [2]
Volatility risk is the risk of an adverse change of price, due to changes in the volatility of a factor affecting that price. It usually applies to derivative instruments , and their portfolios, where the volatility of the underlying asset is a major influencer of option prices .
Volatility is a statistical measure based on how much an asset’s price moves in either direction and is often used to measure the riskiness of an asset or security.
Implied volatility is a powerful but often misunderstood metric that plays a major role in options trading.Implied volatility doesn’t tell you what’s going to happen to an option’s price ...
Investment volatility signifies the degree of change in the trading price of a financial instrument over time. Investment risk, on the flip side, relates to the potential for losses due to factors ...
Implied volatility, a forward-looking and subjective measure, differs from historical volatility because the latter is calculated from known past returns of a security. To understand where implied volatility stands in terms of the underlying, implied volatility rank is used to understand its implied volatility from a one-year high and low IV.
IVX is an expected stock volatility over a future period. It is derived from current option prices and it is available for any optionable security. To calculate this index they use a proprietary weighting technique factoring the Delta and Vega of each option participating in its calculations.