Volatility
What is Volatility?
Volatility is a rate at which the price
or returns of any market index or security increases or decreases the higher the volatility, the riskier the lower the less riskier the security or index. Which can be measured by only 2 things standard deviation or variance between the annualized returns from that same equity or index.
How Can This Help You?
Volatility can be used to help you learn the pricing behavior and gauge fluctuations in the underlying assets and helps you estimate what may happen in a short period of time.