All Glossary Terms
Risk Metrics

Volatility

Definition

Volatility measures how much an asset's price fluctuates over time. High volatility means large price swings (both up and down). It's a key measure of risk in investing.

Formula

Annualised Volatility = Daily Standard Deviation × √252 (trading days per year)

Example

The S&P 500's historical annual volatility is about 15-20%. Tech stocks might have 25-35% volatility. Treasury bonds might have 5-10%.

How AllInvestView Uses This

AllInvestView shows annualised volatility on your analytics page. See also Standard Deviation and Beta.