Difference between revisions of "Volatility"
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==Origin== | ==Origin== | ||
French, from [[Latin]] ''volatilis'', from ''volare'' to fly | French, from [[Latin]] ''volatilis'', from ''volare'' to fly | ||
| − | *[ | + | *[https://en.wikipedia.org/wiki/17th_century 1605] |
==Definitions== | ==Definitions== | ||
*1: readily vaporizable at a relatively low [[temperature]] | *1: readily vaporizable at a relatively low [[temperature]] | ||
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*5: [[difficult]] to capture or hold permanently : evanescent, [[transitory]] | *5: [[difficult]] to capture or hold permanently : evanescent, [[transitory]] | ||
==Description== | ==Description== | ||
| − | In [[finance]], '''volatility''' is a [[measure]] for variation of price of a financial instrument over [[time]]. Historic volatility is derived from time [[series]] of past market prices. An [ | + | In [[finance]], '''volatility''' is a [[measure]] for variation of price of a financial instrument over [[time]]. Historic volatility is derived from time [[series]] of past market prices. An [https://en.wikipedia.org/wiki/Implied_volatility implied volatility] is derived from the market price of a market traded derivative (in particular an option). The symbol σ is used for volatility, and corresponds to [https://en.wikipedia.org/wiki/Standard_deviation standard deviation], which should not be [[confused]] with the similarly named variance, which is instead the square, σ2. Much [[research]] has been devoted to [[modeling]] and [[forecasting]] the volatility of financial returns, and yet few [[theoretical]] models explain how volatility comes to exist in the first place. |
==Quote== | ==Quote== | ||
The nature of [[growth]] is that on its cutting edge there is [[turmoil]], for here newness exists as an experiential [[unknown]]. Once assimilated, it is then possible to know the relief of [[humor]] in reviewing what was once a great and fearsome [[struggle]]. - [https://nordan.daynal.org/wiki/index.php?title=1998-09-18-The_Group_and_the_Individual#Growth Daniel] | The nature of [[growth]] is that on its cutting edge there is [[turmoil]], for here newness exists as an experiential [[unknown]]. Once assimilated, it is then possible to know the relief of [[humor]] in reviewing what was once a great and fearsome [[struggle]]. - [https://nordan.daynal.org/wiki/index.php?title=1998-09-18-The_Group_and_the_Individual#Growth Daniel] | ||
Latest revision as of 02:41, 13 December 2020
Origin
French, from Latin volatilis, from volare to fly
Definitions
- 1: readily vaporizable at a relatively low temperature
- 2: flying or having the power to fly
- 3.a : lighthearted, lively
- b : easily aroused <volatile suspicions>
- c : tending to erupt into violence : explosive <a volatile temper>
- 4.a : unable to hold the attention fixed because of an inherent lightness or fickleness of disposition
- 5: difficult to capture or hold permanently : evanescent, transitory
Description
In finance, volatility is a measure for variation of price of a financial instrument over time. Historic volatility is derived from time series of past market prices. An implied volatility is derived from the market price of a market traded derivative (in particular an option). The symbol σ is used for volatility, and corresponds to standard deviation, which should not be confused with the similarly named variance, which is instead the square, σ2. Much research has been devoted to modeling and forecasting the volatility of financial returns, and yet few theoretical models explain how volatility comes to exist in the first place.
Quote
The nature of growth is that on its cutting edge there is turmoil, for here newness exists as an experiential unknown. Once assimilated, it is then possible to know the relief of humor in reviewing what was once a great and fearsome struggle. - Daniel
