Volatility: Understanding market fluctuations
Volatility measures the intensity of price fluctuations of a financial asset over time. Higher volatility means higher risk but also greater return potential.
Volatility is a statistical measure that quantifies how much an asset's price oscillates relative to its average. It's expressed as an annual percentage and captures the speed and intensity of price changes.
In investing, volatility is synonymous with risk: the more volatile an asset, the more you can lose in a short time, but also more you can gain.
Other calculators you may find useful
If you found this calculator useful, you might also want to check out:
Frequently asked questions
Is volatility bad?
Not necessarily. Volatility is only dangerous if you need the money in the short term.
How do I measure volatility?
Historical volatility is calculated as the standard deviation of returns.