What Is Volatility Tool. Volatility refers to how much the price of an asset — s
Volatility refers to how much the price of an asset — such as a share, bond, or market index — fluctuates over a given period. In finance, volatility (usually denoted by "σ") is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns. Volatility is a statistical measure that quantifies the dispersion of returns for a given security or market index over a specific period of time. It measures how wildly they swing and how often they move higher or lower. May 11, 2025 · Volatility measures how much the price of a stock, derivative, or index fluctuates. This is called volatility. Historic volatility measures a time series of past market prices. Dec 11, 2023 · What Is Volatility? Volatility is how much an investment or the stock market's value fluctuates over time. Apr 10, 2025 · Volatility is a significant, unexpected, rapid fluctuation in trading prices due to a large swath of people buying or selling investments around the same time. In the stock market, volatility can affect groups of stocks, like those measured by the S&P 500 ® and Nasdaq Composite indexes.